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.

How does a CHAPS payment work?

Description. A CHAPS transfer is initiated by the sender to move money to the recipient's account (at another banking institution), where the funds need to be available (cleared) the same working day. Unlike with a bank giro credit, no pre-printed slip specifying the details of the recipient is required.

What is difference between Bacs and CHAPS payment?

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.