What’s the difference between Faster Payments, BACS and CHAPS?
Updated 16 September 2015
Faster Payments are electronic payments that can be made online, over the phone, in branch or through self-service kiosks at your bank in fewer than 2 hours – so long as both banks are part of the Faster Payments Service. Although most electronic payments sent through Faster Payments will arrive at the recipient bank on the same day, this isn’t guaranteed.
Find out more about the transaction limits for online, phone and standing order payments using Faster Payments for UK banks and building societies.
BACS is an electronic system to make payments directly from one bank account to another. They’re mainly used for Direct Debits and direct credits from organisations. The payments take 3 working days to clear, so money paid into your account on Monday will clear on Wednesday.
CHAPS guarantees same-day payment so long as the instructions are received by your bank by 2pm on a working day. There’s no limit to the amount of money you can send. However, your bank will charge you for using this service.