Clearing House Automated Payment System
Clearing House Automated Payment System. (CHAPS) It is normally used for making high-value transactions where same day guaranteed payment is required. Payments are guaranteed to be processed same day providing instructions are received by a certain time (for instance, 2 pm on a specified time zone) on a working day. Banks may charge a fee for CHAPS transfers. They are only used to make bank-to-bank fund transfers in the local currency.