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What is BACs, CHAPs and FPS
Rachel Oguego avatar
Written by Rachel Oguego
Updated over a week ago

Bacs, CHAPS, and FPS are all payment systems used primarily in the United Kingdom for electronic fund transfers. Each system serves different purposes and has specific characteristics:

Bacs (Bankers' Automated Clearing Services): Bacs is a system for processing electronic payments between bank accounts in the UK. It is commonly used for direct debits and direct credits, such as payroll payments, bill payments, and supplier payments. Bacs payments are typically not immediate; they are processed in batches and can take a few working days to clear, depending on the payment instructions.

CHAPS (Clearing House Automated Payment System): CHAPS is a same-day sterling fund transfer system used in the UK for high-value, time-critical payments. It is often used for large transactions such as property purchases, business payments, and financial settlements. CHAPS payments guarantee same-day settlement, provided they are submitted by a certain cut-off time on a working day. CHAPS payments are usually more expensive than Bacs payments due to their immediate nature.

Faster Payments Service (FPS): FPS is an electronic payment system that enables near-instant funds transfers between UK bank accounts. It allows individuals and businesses to send and receive payments quickly and securely, including payments made via online banking or mobile banking apps. FPS payments are usually completed within seconds or minutes, providing a convenient and efficient way to transfer money.


Receiving payments is dependent on the sending bank/platform and payment scheme used.

The standard timeline for receiving GBP transfers is 1-3 working days.

Payments to your UK account can only be received from countries within the EEA.

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