CHAPS

For other uses, see Chaps (disambiguation).
Clearing House Automated Payment System
Company typePrivate
IndustryPayment system
FoundedFebruary 1984
HeadquartersLondon, United Kingdom
WebsiteWebsite

The Clearing House Automated Payment System (CHAPS) is a real-time gross settlement payment system used for sterling transactions in the United Kingdom.

CHAPS was originally established in London by the Bankers Clearing House in February 1984, transferring to the CHAPS and Town Clearing Company Limited in December 1985.[1] This company also operated the 'town clearing', where cheques cleared the same day between the 'town' bank branches in central London.[2] Town clearing had been the forerunner of the CHAPS system, and was finally closed in 1995.

With the closure of the town clearing, the operating company was renamed to CHAPS Clearing Company Limited (informally CHAPS Co). Responsibility for the CHAPS system transferred from it to the Bank of England in November 2017. On 20 August 2018, the first non-bank institution, ipagoo LLP, joined the CHAPS scheme.

  1. ^ "Recent developments in UK payment clearing systems". www.bankofengland.co.uk. Retrieved 20 June 2021.
  2. ^ "The clearings: Early days | Cheque & Credit Clearing Company". www.chequeandcredit.co.uk. Retrieved 20 June 2021.