CHAPS (Clearing House Automated Payment System)

The Clearing House Automated Payment System (CHAPS) is a type of bank-to-bank payment system that provides bank transfers, typically consisting of high-value payments. CHAPS can only be used to settle sterling transactions within the UK and is managed by the Bank of England. It can be used by multinational banks, however, and payments can be made to the same bank (but only in sterling). CHAPS is roughly equivalent to the Automated Clearing House (ACH) in the US.

The service is frequently used to transfer time-sensitive payments. In most instances, CHAPS payments made before the designated cut-off time can be received on the same day. This advantage can be offset, however, by the higher-than-average usage cost. CHAPS payments are also irrevocable: in the event of an error, such as an incorrect account number, transferred funds cannot be easily retrieved.