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Same Day Payments - Faster Payments or CHAPS

Same Day Payments - Faster Payments or CHAPS

October 29, 2019

Same Day Payments or Instant Payments can be send via the Faster Payments or CHAPS system. Both are payment systems in the UK. Find out which payment type fits your needs best.

Table of Contents

CHAPS

CHAPS payments (Clearing House Automated Payments System) are high security same day payments that are mostly used for high value transfers. They are the most expensive way of sending payments and banks charge up to 35 pounds per transfer. Besides charges, pay attention to tight cut-off times for CHAPS payments. Payments have to be submitted before the end of a working day (e.g. Barclays: 3.30pm in a branch or 5pm online). If this cut-off times are missed payments will not go through until the next business day.

Faster Payments

Faster Payments are also used to send same day payments. It sends payments within a minute and the system runs 24/7 without any cut-off times. Faster Payment transfers currently have a limit of 250,000 pounds per transaction. The costs of a Faster Payment depends on your bank or payment provider but banks typically charge between 1-5 pounds per payment plus payment file charges similar to Bacs. Telleroo charges start at 45p per real-time faster payment.

Best ways to send same day payments

Sending individual payments is simple, mostly free, and accessible to even very small businesses. When it comes to sending more than a handful same day payments it becomes more difficult and you are left with two options:

We at Telleroo are committed to end this era of slow and expensive business payments to eventually level the playing field, and make business payments as effortless as consumer payments.

Top Tip from Telleroo

You are probably aware that keying in payments individually is a nightmare and that you wish you could just import a pay run for your business or clients.

This is now possible using a pay run importer like Telleroo that works with most accounting software files and banking files.

Import payments, schedule and fund, without the hassle of manually keying in your payments.