CHAPS is a way of sending money that's guaranteed to arrive on the same day you send it. This is useful if:
- You want to send an amount of money above the Faster Payments limit
- You need it to arrive by a certain date
- The account you’re sending to doesn’t accept Faster Payments.
For example, it's common to transfer money for house purchases using CHAPS. You can check which banks can receive CHAPS payments with the Bank of England.
Most types of payments have limits to the amount you can send each day. CHAPS doesn't have the same limits but does have a fee and you can only make one in a branch.
If you want to send up to £250,000 in a day, you can do this by Faster Payments in branch. Or you can send up to £25,000 by Internet Banking. A Faster Payment usually arrives on the same day within 2 hours, so long as the account you’re sending to accepts them. There is no fee for sending a Faster Payment. You could also pay by cheque if the recipient will accept one. This will take several days to process.
FAQs
CHAPS is a sterling same-day system that is used to settle high-value wholesale payments as well as time-critical, lower-value payments like buying or paying a deposit on a property. The CHAPS system is usually open from 6am to 6pm, Monday to Friday (excluding bank or public holidays in England and Wales).
How long does it take for CHAPS payment to clear? ›
A CHAPS payment to an external bank is guaranteed to arrive on the same day you request it. Here's how that works: If you make your request before 4.25pm on a working day, the funds will arrive on the same day. We process requests made after 4.25pm on the next working day.
What is the disadvantage of CHAPS payment? ›
One of the main disadvantages of the scheme is cost. CHAPS payments can be expensive, with most banks charging a fee for the service. The cost of the transaction is usually higher than other payment methods, on average around 25 GBP, but CHAPS charges vary from bank to bank.
Why do CHAPS payments take so long? ›
Remember that CHAPS payments have strict cut-off times – the system opens at around 6am each working day and payment instructions must be sent by a certain time (determined by your bank). Most of the time, CHAPS payments are made instantly, but in all cases, payment will be made on the same working day.
Can a CHAPS payment go wrong? ›
If an error is made on a CHAPS form, the payer should seek urgent relief in the form of a freezing order against the unintended recipient.
How to pay by CHAPS? ›
You can send a CHAPS payment over the phone, in branch or by post. To make a CHAPS payment in branch, you'll need to bring valid ID and the details of the person you want to pay. Or you can make the payment with telephone banking using your Telephone Security Number or Voice ID.
Do all bank accounts accept CHAPS payments? ›
Most UK banks are able to send and receive CHAPS payments, but not all are 'direct participants' of the CHAPS system. A bank doesn't have to be a direct participant of the system to send and receive CHAPS payments. Many use third-party sponsors or intermediaries to process the CHAPS payments for them.
What is the cut-off for CHAPS payments? ›
How to transfer money using CHAPS. Online – if you are a Business Customer using Bankline (Fees may apply) – payment cut off time is 5:30pm. This is extended to 6:15pm if the beneficiary account is held at another NatWest sort code.
Why use CHAPS instead of faster payment? ›
CHAPS vs Faster Payments
You can use Faster Payments for all your personal and business needs for free or a low fee as long as the transfer amount is under £1m. CHAPS payments are more expensive and are suitable for high-value time-sensitive payments.
How to pay a large amount of money? ›
Wire transfers at a bank are ideal for securely sending large amounts domestically or internationally. Money transfer scams often include unusual requests to send money to strangers.
Yes, because the Bank of England is responsible for CHAPS, it's a safe way for you to transfer money. As a highly secure and efficient system, CHAPS is best suited to transferring high-value payments and being used in time-sensitive situations.
What happens if a CHAPS payment goes missing? ›
As with any transaction, it could have been flagged for fraud/money laundering and been put on a hold for additional checks. This could have been done by both the solicitors bank and also Monzo and doesn't matter if it was a quick CHAPS payment it would still need to be investigated.
Why use CHAPS instead of Faster Payment? ›
CHAPS vs Faster Payments
You can use Faster Payments for all your personal and business needs for free or a low fee as long as the transfer amount is under £1m. CHAPS payments are more expensive and are suitable for high-value time-sensitive payments.
Is CHAPS the same as swift? ›
Swift payments vs CHAPS
With CHAPS you can send high value payments within the UK and make same-day transfers in GBP. This speedy service has fees applied to it. With Swift payments you have the security of tracked international payments, in any currency. Transactions can be slow, taking one to five working days.
Can a CHAPS payment be recalled? ›
Cut off times apply to CHAPS Payments
They are unconditional, and once made, cannot be recalled.
