What is a CHAPS Payment?

A CHAPS payment, also known as Clearing House Automated Payment System, is a type of electronic bank-to-bank payment method that allows for the transfer of funds between accounts in the United Kingdom. It is a same-day payment system that provides a fast and secure way of moving large amounts of money. CHAPS payments are typically used for time-sensitive and high-value transactions, such as property purchases or business transactions. This payment method is considered reliable and efficient, offering a guaranteed same-day settlement. However, it is important to note that CHAPS payments often come with higher fees compared to other electronic payment options.