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. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Float Time

    The amount of time between when an individual writes and submits ...
RELATED FAQS
  1. What does CHIPS UID mean?

    CHIPS UID stands for Clearing House Interbank Payments System Universal Identifier. This is just a fancy name for an electronic ... Read Full Answer >>
Related Articles
  1. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  2. Options & Futures

    Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.
  3. Personal Finance

    Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
  4. Economics

    A Ban On SWIFT Could Hit Russia Where It Hurts Most

    A SWIFT ban on Russia could have a crippling effect on its debt-servicing ability and overall economy, and just might force a change in its policy.
  5. Credit & Loans

    Which Is One Of The Nation’s Safest Banks?

    While there's no such thing as a completely safe bank stock, it's hard to find one that comes closer to the mark than New York Community Bancorp .
  6. Personal Finance

    Overdrafting

    An overdraft occurs when money is withdrawn from a bank account in an amount that exceeds the funds available in the account. Banks often permit this as a form of short-term loan to the account ...
  7. Personal Finance

    Mergers and Acquisitions Analysts: What They Do, How Much They Make

    Mergers and acquisitions analysts perform the the analysis and modeling to support buying, selling, restructuring, and combining companies.
  8. Personal Finance

    How You Can Become A Venture Capital Associate

    Venture capital analysts are the junior members of the venture capital firm. They receive compensation that is typically higher than other finance analyst positions.
  9. Trading Strategies

    Eyeing a Loan? Consider Skipping the Banks

    Peer-to-peer lending platforms, such as Lending Tree, Lending Club and Prosper, offer borrowers newfound leverage. Here's a look.
  10. Personal Finance

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center