Glossary · Payment methods
CHAPS
CHAPS is the UK’s same-day payment system for high-value transfers, run by the Bank of England, with no upper limit on amount.
CHAPS payments settle on the same working day and are final once made. The system is operated by the Bank of England and is used for large or time-critical sterling payments — property completions, treasury transfers and big supplier payments.
It costs more than Faster Payments or Bacs, so customers use it for large or urgent amounts. There is no maximum payment size.
If a large customer promises same-day payment of a big overdue balance, CHAPS is the likely route.
Nothing extra is needed on the invoice: a CHAPS payment uses the same sort code and account number as any UK transfer, and the customer’s bank handles the routing. What matters is the amount — confirm the exact balance, so one same-day payment settles the account in full.
Example
To release a held order, a customer pays a £250,000 overdue balance by CHAPS on the morning of the deadline. It settles the same day.