CHAPS stands for Clearing House Automated Payment System, which is a real-time gross settlement payment system used for sterling transactions in the United Kingdom. It is a type of high-value, bank-to-bank payment system that provides irrevocable, settlement risk-free, and efficient payments. CHAPS is one of the largest high-value payment systems in the world, providing efficient, settlement risk-free, and irrevocable payments.

CHAPS is used for same-day, high-value payments that need to be sent as soon as possible, such as property purchases, taxes, and vehicle purchases. It 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 can be up to £25,000, although the customers bank may impose a separate limit.

CHAPS payments are initiated by the sender to move money to the recipients account at another banking institution, where the funds need to be available (cleared) the same working day. Unlike with a bank giro credit, no pre-printed slip specifying the details of the recipient is required. CHAPS payments can only be used to settle sterling transactions within the UK and the system is managed by the Bank of England.

There are over 30 direct participants and over 5,000 financial institutions that make CHAPS payments through one of the direct participants. CHAPS is used by some of the worlds largest financial institutions, and it allows funds to be transferred almost instantaneously, minimizing the risk of loss or theft. However, CHAPS is much more costly for the end-user than other payment systems, with banks typically charging around £25-30 per transaction.