What does CHAPS mean? What is the full form of CHAPS?
The Full Form of CHAPS is Clearing House Automated Payment System.
The Clearing House Automated Payments System (CHAPS) is a company that facilitates large money transfers denominated in British pounds (GBP). CHAPS is administered by the Bank of England (BoE) and is used by 30 participating financial institutions. Approximately 5,500 additional institutions also engage with the system by way of partnership agreements with the 30 primary members.
KEY TAKEAWAYS
- The Clearing House Automated Payments System (CHAPS) is a U.K.-based system that facilitates large British pound-denominated money transfers.
- Multinational banks principally use CHAPS.
- CHAPS allows funds to be transferred almost instantaneously, minimizing the risk of loss or theft.
CHAPS is used by large financial institutions that need to transfer billions of dollars worth of currency each day. To assist in these transfers, CHAPS enables real-time fund transfers and can accommodate frequent large transfers with virtually no delay. The speed of CHAPS also substantially eliminates the risk that senders will cancel their transfers before they are accepted by the recipient.
For the most part, CHAPS members are large banks. However, other business entities also use the service through partnerships with primary members. For these entities, CHAPS can be useful for unusually large payments. Using CHAPS can minimize expensive delays or the risk of funds being lost or stolen by intermediaries.
CHAPS is used by large financial institutions for foreign and money market transactions. Companies may used CHAPs for large or time-sensitive payments to suppliers or for tax payments. CHAPS is often used to complete property transactions or for high-value transactions, such as buying a car.
CHAPS
means
Clearing House Automated Payment System
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