What Is A CHAPS Payment? | CHAPS Transfers – HSBC UK (2024)

FAQs

What Is A CHAPS Payment? | CHAPS Transfers – HSBC UK? ›

A CHAPS payment is a same-day transfer between banks that can be used for large amounts of money. If you need to pay someone straight away or transfer a large amount of money, CHAPS transfers allow you to make same-day, high-value electronic payments.

The daily mobile and online banking limit for payments to a UK company is £25,000. Payments to friends and family can be made up to your personal payment limit. Payments above these limits will be sent as a CHAPS payment. You can do this over the phone, in branch or by post.

CHAPS is a sterling same-day system that is used to settle high-value wholesale payments as well as time-critical, lower-value payments like buying or paying a deposit on a property. The CHAPS system is usually open from 6am to 6pm, Monday to Friday (excluding bank or public holidays in England and Wales).

Timescales. A CHAPS payment to an external bank is guaranteed to arrive on the same day you request it.

The CHAPS transfer system is designed for larger, one-off payments, while Bacs is better suited for regular, lower-value transactions. You'll also need to consider payment clearing times, as well as the set-up costs, per-transactions fees and administrative requirements for each type of payment.

CHAPS – the cut off time for CHAPs payments is 5:10pm UK time on the payment date. You'll need to let all authorisers know when a payment is set up. How do I set up Dual Control?

For UK payments, the daily limit for online and mobile bank transfers is £25,000 per account. If you need to transfer a larger amount, for example making a deposit on a house, you'll need to make a CHAPS payment. This can be done in branch and has no upper payment limit.

You can use SWIFT payments to transfer money between different countries. There is a £25 charge to use this service. You can use CHAPS to make payments in the UK, in sterling, on the same day. There is a £25 charge to use this service.

In most cases, funds arrive in the recipient's bank account within seconds. Faster Payments may occasionally take up to 2 hours to go through but this is uncommon. However, you should use these timeframes as a general estimate.

How do I make a large payment at HSBC? ›

You can send money up to your personal payment limit via online and mobile banking. Payments above your limit will be sent as a CHAPS payment. If you're an HSBC customer, you can send a CHAPS payment in branch or by post. If you hold an HSBC Premier account, you can also do this over the phone.

Most HSBC to HSBC transfers are fee-free, but some intermediary banks may charge fees. You can see an estimate of the applicable fees when you review your transfer. The actual amount is subject to the intermediary bank and will be debited after you've confirmed your transfer.

If a CHAPS payment has already left your account then it can't be amended or cancelled.

You can send a CHAPS payment over the phone, in branch or by post. To make a CHAPS payment in branch, you'll need to bring valid ID and the details of the person you want to pay. Or you can make the payment with telephone banking using your Telephone Security Number or Voice ID.

CHAPS is typically used to transfer high-value payments that are somewhat 'time-sensitive'. For instance, businesses may use CHAPS to pay their suppliers or to pay taxes, and individuals may use CHAPS when paying a house deposit or when moving their savings from one account to another.

CHAPS guarantee same-day payment – as long as payment instructions are received by a specific time in the working day (the time is determined by your bank) – and there's no limit to the amount of money that you can transfer via CHAPS.

You can use SWIFT payments to transfer money between different countries. There is a £25 charge to use this service. You can use CHAPS to make payments in the UK, in sterling, on the same day. There is a £25 charge to use this service.

CHAPS (Clearing House Automated Payment System) is a Telegraphic Transfer system which allows you to make same working day withdrawals and deposits for your savings accounts.

If you're transferring money online to another one of your HSBC accounts, there is no limit to how much you can move.

BACS stands for Bankers' Automated Clearing System. It's a regulated payment system run by Bacs Payment Schemes Limited (now Pay.UK) and is one of the most common ways that money is sent and received from bank to bank.