A CHAPS transfer is initiated by the sender to move money to the recipient's account (at another banking institution), where the funds need to be available (cleared) the same working day.
Unlike cheques, the transfer is performed in real time, removing the issue of float or the potential for payments to be purposely stopped by the sender or returned due to insufficient funds, even after they appear to have arrived in the destination account.
[4] CHAPS used to offer euro fund transfers as a member of the EU-area settlement system TARGET, but this service closed on 16 May 2008.
[4] As well as making transfers originated by banks themselves, CHAPS is frequently used by businesses for high-value payments to suppliers, by mortgage lenders issuing advances, and by solicitors and conveyancers on behalf of individuals buying houses.
[7] Problems can arise from delays, such as when an exceptional workload at a bank results in the money being cleared too late in a working day to complete related transactions, or inadequate instructions, when a bank is not given sufficient information to know where to credit the money, or a human delay in operating the machines.