Clearing House Automated Payments System - CHAPS

AAA

DEFINITION of 'Clearing House Automated Payments System - CHAPS'

A British company that facilitates the trading of European currency. CHAPS provides same-day fund transfers for the sterling and the euro. CHAPS transfers are used when money needs to be moved from one account to another. CHAPS transfers are fairly costly, with an average fee of 30 pounds per transfer. CHAPS eliminates float time that occurs with cheque writing and prohibits the sender from rescinding the payment.

INVESTOPEDIA EXPLAINS 'Clearing House Automated Payments System - CHAPS'

CHAPS was first established in London in 1984. It is currently used by 19 settlement banks (including the Bank of England) and over 400 submember institutions. In 2004, CHAPS averaged 130,000 transactions per day, moving 300 billion pounds sterling. New, lower cost transfers have recently become available from the CHAPS system.

RELATED TERMS
  1. Clearing House Interbank Payments ...

    The primary clearing house in the U.S. for large banking transactions. ...
  2. Clearing House Funds

    Money that passes between Federal Reserve Banks in the form of ...
  3. Cash Collateral

    Cash collected when liquid assets are sold during Chapter 11 ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  6. Float Time

    The amount of time between when an individual writes and submits ...
Related Articles
  1. Your First Checking Account
    Insurance

    Your First Checking Account

  2. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  3. Cut Your Bank Fees
    Personal Finance

    Cut Your Bank Fees

  4. What does CHIPS UID mean?
    Investing

    What does CHIPS UID mean?

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center