What is the Clearing House Automated Payment System?
Definition of Clearing House Automated Payment System: This system is popularly referred as CHAPS. It can be explained as the real gross settlement used in UK for the daily clearings of foreign currency and Sterling. This automated payment system is an electronic bank offering the same day cost payment which is made within Sterling or UK. The main advantage of this automated payment system is it is quick, safe and well-organized and the cash can be transferred on the specific day. Unlike the other modes of payment like checks, the payments made by CHAPS are irreversible. This automated payment system is regarded as one of the biggest RTGS systems. Most of the banks utilize this automated payment system for moving the money in the monetary system, but this payment system is also used for making business payments on a regular basis by the licensed agents and solicitors. They use this specific payments system for transferring the purchase cost of a home between the accounts of those people involved in it and by the people who purchases or sells a product that has a high value like car which demands a safe and urgent payment.