Make Fast and Reliable Payments with UK Payment Systems

The UK offers three trusted systems for secure money transfers — BACS, FPS, and CHAPS. Each is designed for different payment needs, from everyday transfers to high-value transactions.

SEPA

What are BACS, FPS and CHAPS Payments?

The UK payment systems consist of three main networks:
BACS transfer, FPS transfer, and CHAPS transfer. Each system has its own purpose and advantages.

BACS
BACS
BACS (Bankers Automated Clearing Services) is mainly used for regular payments such as salaries, supplier invoices, and pensions. It’s a dependable option for businesses that need to handle bulk payments. A BACS payment usually takes up to three working days to reach the recipient’s account.
sepa step 1
FPS
FPS
FPS (Faster Payments UK) allows instant transfers between banks. It’s ideal for individuals and companies who want to move money quickly. Most FPS transfers clear within seconds, 24/7, including weekends and holidays.
sepa step 2
CHAPS
CHAPS
CHAPS (Clearing House Automated Payment System) is designed for same-day, high-value payments, often used for property purchases or large corporate transactions. The CHAPS processing time is typically within a few hours on working days, providing security for critical payments.
CHAPS step 3
sepa step 1 sepa step 2 sepa step 3

Key benefits for customers

When selecting between BACS, FPS, and CHAPS, it’s worth knowing how each system benefits you. BACS payments are cost-effective and ideal for bulk processing, offering stability and predictability. FPS transfers are perfect for real-time business transactions and instant personal transfers. CHAPS transfers provide confidence when timing and certainty matter most.

iban
Key benefits for customers

Here are the main advantages of these UK payment systems:

BACS
BACS
  • Cost-effective
  • Suitable for recurring payments
  • Easy to automate
FPS
FPS
  • Fast
  • Available round the clock
  • Suitable for small and medium transfers
FPS
CHAPS
  • Same-day clearing
  • Ideal for high-value or time-sensitive transactions

Below is a comparison of all three systems:

Feature
BACS
FPS
CHAPS
Processing time
Up to 3 working days
Seconds
Same day
Availability
Working days
24/7
Working days
Typical use
Salaries, invoices
Payments may appear under provider name
Payments may appear under provider name
Transfer limit
No fixed limit
(bank-defined)
Up to £1m
(varies by bank)
No limit
Cost
Low
Low to medium
Higher

Many of our clients combine these services with SEPA transfers to manage both domestic and cross-border payments with ease.

How to Make a BACS, FPS or CHAPS Payment

Most banks confirm an FPS transfer within seconds. A BACS payment will show as “pending” until it clears, while a CHAPS transfer may take a few hours depending on the cut-off time. Each system offers reliable tracking options, so you can easily monitor the payment’s progress.

We also support payments for digital services, including our Crypto Exchange, where customers can securely manage crypto-to-fiat conversions alongside their standard transfers.

To make a payment through any of these systems, follow these steps:
  • Log in to your online banking or business account.
  • Choose the payment type: BACS, FPS, or CHAPS.
  • Enter the recipient’s name, account number, and sort code.
  • Add the payment amount and reference.
  • Confirm the date of transfer
    (immediate or scheduled).
  • Verify all details and approve the transaction.
FAQ

Frequently asked questions

Who can use BACS, FPS, and CHAPS for payments?
Both individuals and businesses can use these systems. Most UK banks and financial platforms, including Connectro, provide access to all three options for domestic transfers.
How long does each payment type take to clear?
A BACS transfer takes up to three working days, an FPS transfer usually arrives instantly, and a CHAPS transfer clears within the same business day.
What types of transactions are suitable for each system?
Use BACS payment for regular business payouts, FPS transfer for quick personal or small business payments, and CHAPS transfer for urgent or high-value transactions.
Are there fees for BACS, FPS, or CHAPS payments?
BACS transfers are usually low-cost. FPS transfers often carry no fee at all. CHAPS transfers tend to have higher costs because of the same-day processing feature.
Can payments be scheduled in advance?
Yes, BACS payments and FPS payments can be pre-scheduled. This makes it easier for companies to handle future transactions and avoid missed deadlines.
What information is required to make these transfers?
For all types — BACS transfer, FPS transfer, and CHAPS transfer — you’ll need the recipient’s name, account number, sort code, and reference. Businesses sending high-value payments may be asked for additional verification documents.