CHAPS stands for Clearing House Automated Payment System, which is a type of high-value, bank-to-bank payment system used for sterling transactions in the United Kingdom. It was established in London by the Bankers Clearing House in February 1984. CHAPS is a real-time gross settlement payment system that provides irrevocable, settlement risk-free, and efficient payments. A CHAPS transfer is initiated by the sender to move money to the recipients account at another banking institution, where the funds need to be available the same working day. Unlike with a bank giro credit, no pre-printed slip specifying the details of the recipient is required. CHAPS is used by twenty direct participants, including the Bank of England, and over 4,500 indirect participants who process transactions via agency arrangements with direct participants. CHAPS is frequently used by businesses for high-value payments to suppliers, by mortgage lenders issuing advances, and by solicitors and conveyancers on behalf of individuals buying houses. CHAPS payments are for high-value, time-sensitive payments, such as a payment on a property or a large, expensive business asset. The main benefits of using CHAPS to transfer funds are that there is no limit to the amount of money you can transfer, and the payment is guaranteed to be settled on the same day. However, CHAPS is much more costly for the end-user than other payment systems, with banks typically charging around £25-30.