CHAPS and BACS - can anyone explain to a thicko pls?

[housemouse]

can anyone who works in a bank explain pleas? What are the CHAPS and BACS systems for transferring money - in what situations would they be used and which is quicker? do you pay fees for using them (and what do the initials stand for)?

thank you/!

I am no accountant but if you CHAPS money it gets sent immediately (for a fee around £20) and if you BACS money it gets transferred to another bank account in approx 3 working days.

Not a clue what the initials stand for. Cash/Bank Automated system?

BACS stands for Bank automated clearing system
Not sure on CHAPS but you can be charged from around £20 to £40 for this also CHAPS can be called TT (Telegraphice Transfer)

CHAPS - clearing house automated payments system (?)

BACS - bankers automated clearing system

chicken wings is right re timings.

CHPAS usually used for things like house purchase to transfer between solicitors accounts although can be used for any amount urgent payment if you are willing to pay the fee.

BACS used for salaries, direct debits etc. Companies using these will be charged a small amount for each payment. Depending on the size of their acocunt and the number of payments they are making, the charge can vary. A personal customer won't be charged normally for receipt of such a payment e.g. salary.

Think that covers it.

CHAPS is a same-day value transaction, costs around £25.00 and this is often transferred to the individual. Examples of use are mortgage draw-downs, insurance payouts etc. Banks themselves use it to transfer money around. Normally used for non-routine transactions.

BACS - direct debts and direct credits are both examples of BACS payments. Normally used for routine transactions. Unusual for the costs to be directly transferred to the individual.

HTH

Why do you ask?

ahh, thank you all, I am now enlightened! gomez, see my other thread re conveyancing.