Chaps Bank Transfer

Chaps bank transfer is a method of transferring money between banks, it takes the role of a traditional bank transfer service.

CHAPS is a company which was established within the UK in 1984, the organisation is also known as The Clearing House Automated Payment System. The company was created in order to provide UK consumers with a same day bank transfer, the company operates in sterling fund transfers only. At one point the business did diversify to Euro currency transfer although this services has now ceased.

The CHAPS business is highly regarded within the financial world and the company is a member of the trade organisation APACS and the company is also part of the EU area settlement system known as TARGET.

In order to start a chaps transfer a sender must initiate the move of moving the money to the recipients account, this may be at a different financial institution. The funds will be cleared into the recipients bank account the same working day.

One of the main differences between this kind of bank transfer and bank giro credit is that there is not a pre printed slip which details the information of the transfer. This is a real time transfer and is therefore different to the traditional cheque payment format. As it is real time is therefore means that the payment cannot be stopped or returned if there are insufficient funds to make the payment.