CHAPS is the UK's same-day payment system for high-value transfers, commonly used for house purchases. There is no maximum limit on a CHAPS payment.
Last reviewed: 1 July 2026
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MONEY GUIDES |
CHAPS (Clearing House Automated Payment System) is the UK's payment system for same-day, high-value sterling transfers. It is commonly used to move large sums such as house purchase funds, where certainty of same-day settlement matters.
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KEY FACTS
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Why CHAPS exists alongside standard bank transfers
Most everyday bank transfers in the UK use Faster Payments, which is free but has a lower per-transaction limit and settles within minutes to hours rather than being formally guaranteed same-day. CHAPS exists for situations where a large sum needs guaranteed same-day settlement, most commonly the final transfer of funds to complete a house purchase.
CHAPS vs Faster Payments
| Feature | CHAPS | Faster Payments |
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| Typical use | Large one-off payments, house purchases | Everyday transfers |
| Settlement | Same working day, if before cut-off | Usually within minutes |
| Maximum amount | No maximum | Limits set by individual banks |
| Typical cost | A fee, often £20-£35 | Usually free |
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Worked Example: Completing on a house purchase A buyer's solicitor needs to send the remaining purchase funds, often several hundred thousand pounds, to the seller's solicitor on completion day with certainty the money will arrive that same day. A CHAPS payment is used precisely because Faster Payments limits and lack of a guaranteed same-day service would not fit a transaction of this size and urgency. |
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This article is general information, not financial or legal advice. Rules and limits can change: always check the current position with the regulator or scheme concerned before relying on any figure here. |
Is a CHAPS payment instant?
No, CHAPS payments are guaranteed same working day, not instant, and must be submitted before the bank's daily cut-off time to settle that day.
Why does a CHAPS payment cost more than a normal transfer?
Banks generally charge a fee to reflect the same-day settlement guarantee and the manual checks often involved in processing high-value CHAPS payments.
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