CHAPS is the UK Payment scheme for high-value wholesale and retail payments. CHAPS Payments are settled individually intraday from central bank funds held on account at the Bank of England.
CHAPS Use cases
Time-critical irrevocable high value payments are sent via CHAPS:
- Wholesale financial payments.
- Corporate treasury.
- Commercial business and financial transactions of all values.
- High-value public sector transfers.
- Retail purchases including house and car purchases.
- Education fees.
- International sterling payments, using SWIFT message standards.and infrastructure
- Other critical payments.
The CHAPS system is open for settlement from 06:00 until 18:00,
Monday – Friday. The Direct Participant has the right to call an
extension to 20:00 should there be an operational need. Settlement
is continuous during opening hours. Participants can choose to make
urgent payments, which settle immediately, or non-urgent payments,
which benefit from optimised liquidity management. Each bank’s
settlement account is credited or debited at the Bank of England in
real time as each payment is presented. The Bank of England sends
confirmation of settlement to each participating bank. Processing
between Direct Participants is governed by the scheme.