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?

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center