What is CHAPS (Clearing House Automated Payment System)?
Responsibility for the CHAPS system transferred to the Bank of England in November 2017.
CHAPS is one of the largest high-value payment systems in the world, providing efficient, settlement risk-free and irrevocable payments. There are over 25 direct participants and over five thousand financial institutions that make CHAPS payments through one of the direct participants.
The CHAPS Clearing Company website has been archived by The National Archives.
Who uses CHAPS?
Direct participants in CHAPS include the traditional high-street banks and a number of international and custody banks. Many more financial institutions access the system indirectly and make their payments via direct participants. This is known as agency or correspondent banking.
CHAPS payments have several main uses:
- Financial institutions and some of the largest businesses use CHAPS to settle money market and foreign exchange transactions
- Corporates use CHAPS for high value and time-sensitive payments such as to suppliers or for payment of taxes
- CHAPS is commonly used by solicitors and conveyancers to complete housing and other property transactions
- Individuals may use CHAPS to buy high-value items such as a car or pay a deposit for a house
CHAPS Direct ParticipantsBank of America N.A. (London branch)
Bank of China Limited (London branch)
Bank of England
Bank of New York Mellon (London branch)
Bank of Scotland plc (part of the Lloyds Banking Group)
Barclays Bank plc
BNP Paribas SA (London branch)
Citibank N.A. (London branch)
CLS Bank International (an Edge Act Bank based in New York)
Clydesdale Bank plc
Danske Bank (a trading name of Northern Bank Limited, part of the Danske Bank Group)
Deutsche Bank AG (London branch)
Elavon Financial Services DAC (UK branch)
HSBC Bank plc
J.P. Morgan Chase Bank N.A. (London branch)
Lloyds Bank plc (part of the Lloyds Banking Group)
National Westminster Bank plc (part of the Royal Bank of Scotland Group)
Northern Trust Company (London branch)
Royal Bank of Scotland plc (part of the Royal Bank of Scotland Group)
Santander UK plc (part of the Banco Santander Group)
Societe Generale (Paris Head Office)
Standard Chartered Bank plc
State Street Bank and Trust Company (London branch)
Svenska Handelsbanken AB (London branch)
The Co-operative Bank plc
UBS AG (London branch)
How does CHAPS work?
Payment obligations between direct participants are settled individually on a gross basis in RTGS on the same day that they are submitted. The transfer of funds is irrevocable between the direct participants.
Operating hours: The CHAPS system opens at 6am each working day. Participants must be open to receive by 8am and must send by 10am. CHAPS closes at 6pm for bank-to-bank payments. Customer payments must be submitted by 5.40pm.