Finance glossary
CHAPS — Clearing House Automated Payment System
Also known as: CHAPS payment
In simple terms
CHAPS is a same-day payment system used to move large sums securely — most people meet it when buying a house, where the deposit and purchase money are sent by CHAPS. There is usually a bank fee to use it.
On this page
What does CHAPS mean?
CHAPS stands for the Clearing House Automated Payment System. It is a UK payment system, operated by the Bank of England, for sending high-value or time-sensitive payments that must clear the same working day.
It is most familiar to consumers through property transactions — the money for a house purchase is typically sent by CHAPS — and other large one-off payments where certainty and same-day settlement matter.
How CHAPS works
If you instruct a CHAPS payment before your bank’s cut-off time on a working day, the money reaches the recipient’s bank the same day. There is no upper limit on the amount, which is why it is used for large sums, and banks usually charge a fee (often in the region of £20–£30).
Unlike Faster Payments — which is instant and typically free but capped in size — CHAPS is built for high value with guaranteed same-day settlement. Once sent, a CHAPS payment is effectively irrevocable, so the details must be exactly right.
How could this affect me?
You are most likely to use CHAPS through a solicitor or conveyancer when buying a property. Understanding that it is same-day and irreversible helps you appreciate why account details are triple-checked before completion.
Because CHAPS payments cannot be recalled once made, they are a target for fraudsters posing as solicitors or banks. Always verify payment details through a trusted, independently confirmed channel before authorising a large transfer.
Things to watch out for
- A CHAPS payment is same-day but effectively irreversible — check the details carefully before sending.
- Banks usually charge a fee for CHAPS, unlike Faster Payments.
- You must beat your bank’s daily cut-off time for the money to arrive the same day.
- Large property payments are a fraud target — always verify account details through a trusted channel.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- Bank of England, CHAPS (opens in a new tab). Accessed 22 Aug 2026.