What does CHAPS stand for?

CHAPS stands for Clearing House Automated Payment System. It is a same-day electronic payment system in the United Kingdom that allows for the quick and secure transfer of funds between different bank accounts. CHAPS is primarily used for high-value transactions, such as large business payments or property purchases. It provides a real-time settlement, ensuring that the recipient receives the funds on the same day. However, it is important to note that CHAPS transactions often come with a fee, making it more suitable for urgent or time-sensitive payments rather than everyday transactions.