What’s the difference between BACS, CHAPS (same-day UK payments) and Faster Payments?

Faster Payments

These are electronic payments that can be made online, over the phone, in branch or through self-service kiosks in fewer than 2 hours, and can be made same day – so long as both banks are part of the Faster Payments Service. There’s no fee if you’re a Personal or Premier customer; business customers may be charged depending on their account*.

We automatically send payments through Faster Payments where possible. If the receiving bank doesn’t accept Faster Payments, we’ll send the funds via CHAPS.

CHAPS

This guarantees same-day payment – so long as the instructions are received by 2:30pm on a working day. There’s no limit to the amount of money you can send, although there is a £25 charge for this service. 

BACS

This 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.

*Although most electronic payments sent through Faster Payments will arrive at the recipient bank on the same day, this isn’t guaranteed. For details of the service, visit the Payments Council website.