A CHAPS payment is a same-day sterling transfer settled through the Bank of England's real-time gross settlement infrastructure. It is used for high-value or time-critical UK payments where same-day final settlement is important.
A business submits CHAPS instructions through a participating bank or payment provider. Customer cut-offs are normally earlier than the system's own operating deadline, so treasury should confirm the provider's timetable before promising settlement.
Controls for a time-critical CHAPS payment
- Verify beneficiary account and sort-code details through an approved source.
- Schedule internal authorization with enough time for the bank's validation and cut-off.
- Retain the bank reference and confirmation of processing; escalate promptly if the deadline passes without evidence.
| Checkpoint | What finance should confirm |
|---|---|
| Priority | The sterling payment must settle on the same business day. |
| Value | The amount or commercial consequence justifies a high-value route. |
| Control | Beneficiary verification and senior approval are complete before submission. |
CHAPS Payment compared with nearby terms
CHAPS is distinct from Bacs and Faster Payments. Each route has different timing, access, limits and cost characteristics set partly by the customer's provider.
Related definition: Real-Time Gross Settlement.
Source and business-payment context
For cross-border supplier payments, compare the rail, currency conversion, fees and recipient requirements before release. See Quotable Payments and international vendor payments.
