The Clearing House Automated Payments System (CHAPS) is a U.K.-based system that facilitates large British pound-denominated money transfers. Multinational banks principally use CHAPS. CHAPS allows funds to be transferred almost instantaneously, minimizing the risk of loss or theft.

Is CHAPS the same as a bank transfer?

CHAPS stands for Clearing House Automated Payment System. CHAPS is the bank-to-bank transfer system that runs through the SWIFT network. It's typically reserved for once-off, high-value payments that need to be sent and received on the same day.

What is the difference between Bacs and CHAPS?

BACS stands for Bankers Automated Clearing System which is used for sending money electronically from one UK bank to another. ... CHAPS stands for Clearing House Automated Payment System and is a faster way to transfer money than BACS. The transfer is normally completed on the same day.