In the UK, there is one type of payment scheme called CHAPS Payment. CHAPS Payment has its own set of unique features along with some advantages and disadvantages.
CHAPS stands for Clearing House Automated Payment System and has been in operation since 1984.
- Both retailers and wholesalers use the CHAPS Payment method.
- It is mainly used for high-value payments within the UK.
- No minimum payment limit is applicable.
- CHAPS payments can be done instant or can take up to 1 working day.
- It is used when transferring amounts worth over £10,000, within the UK.
- It costs around £25.
CHAPS payments are not generally used for low-value transfers because they are quite expensive to process.
The worth of CHAPS payments is more than £10,000 and can be settled immediately, making them ideal for large and critical transfers.