CHAPS payment
Author
Discussion

_Deano

Original Poster:

7,414 posts

284 months

Friday 8th May 2009
quotequote all
If i have paid for a CHAPs payment. Should i have the money in my account as soon as they (the payee) have sent it or before the end of the business day?

thanks


grumbledoak

32,571 posts

264 months

Friday 8th May 2009
quotequote all
Pretty close to instant, in practice.

BACS = Free, 3 days(ish)
CHAPS = Charged, but same day

Edited by grumbledoak on Friday 8th May 13:03

DonnyMac

3,634 posts

234 months

Friday 8th May 2009
quotequote all
BACs is usually instant now, or within 2 hours if your bank is one of those that have joined this scheme.

Chaps is far from instant and now slower than BACs (again for banks within the scheme).

m4tt

591 posts

229 months

Friday 8th May 2009
quotequote all
Online transfer is usually instant or at worst within 2hrs, but limited to £10k with most banks.
CHAPs is same business day as long as instruction is taken by 3:00-3:30 depending on bank.
BACs is an instruction that you make, then 3 days later the payment debits your account and credits the recipient, usually all done at midnight.

The confusing thing is when you make an online transfer it sometime shows up as BAC but really it isn't.


Simples.

anonymous-user

85 months

Sunday 10th May 2009
quotequote all
m4tt said:
Online transfer is usually instant or at worst within 2hrs, but limited to £10k with most banks.
CHAPs is same business day as long as instruction is taken by 3:00-3:30 depending on bank.
BACs is an instruction that you make, then 3 days later the payment debits your account and credits the recipient, usually all done at midnight.

The confusing thing is when you make an online transfer it sometime shows up as BAC but really it isn't.


Simples.
Hi

I thought that a standard BACS payment debited your account on say a Monday and then arrived on the Wednesday? Rather than a credit/debit on the same day three days later???

If an online payment is not BACS, then what is it?

P

maser_spyder

6,356 posts

213 months

Sunday 10th May 2009
quotequote all
MRSNEAK said:
m4tt said:
Online transfer is usually instant or at worst within 2hrs, but limited to £10k with most banks.
CHAPs is same business day as long as instruction is taken by 3:00-3:30 depending on bank.
BACs is an instruction that you make, then 3 days later the payment debits your account and credits the recipient, usually all done at midnight.

The confusing thing is when you make an online transfer it sometime shows up as BAC but really it isn't.


Simples.
Hi

I thought that a standard BACS payment debited your account on say a Monday and then arrived on the Wednesday? Rather than a credit/debit on the same day three days later???

If an online payment is not BACS, then what is it?

P
BACS pretty old now and is pretty much all but finished. New FPS (Faster Payments System) came in a good couple of months ago now, almost all major banks are signed up. FPS has basically replaced BACS for normal, online/telephone transfers.

Basically, an online transfer from say HSBS to Natwest that used to take 2 working days, now takes less than 2 working minutes. There's a few banks that are not using it yet (Nationwide is one that isn't yet, but will be soon), transferring to/from these still takes the old fashioned 2 days.

FPS has limitations on the amount you can transfer in a single day, CHAPS can be any amount.

Hope that helps!

p.s. I know Nationwide isn't a bank, but for the purposes of illustration....

Stitch

933 posts

248 months

Monday 11th May 2009
quotequote all
there are many vagaries to the banking payment system - CHAPS should be next day, providing you get the instruction in before your bank's cut off - and it is sent down to the processing people.

In my experience, next day means some time during the next day.

Great fun when you are running a cash-strapped business and working hand to mouth.....

maser_spyder

6,356 posts

213 months

Monday 11th May 2009
quotequote all
Stitch said:
there are many vagaries to the banking payment system - CHAPS should be next day, providing you get the instruction in before your bank's cut off - and it is sent down to the processing people.

In my experience, next day means some time during the next day.

Great fun when you are running a cash-strapped business and working hand to mouth.....
CHAPS is same day, not next day?

It will arrive next day if processed after the cut-off time (normally about 3.30), if processed before the cut-off time, it will arrive at any UK receiving bank the same working day.