Main site > MoneySavingExpert.com Forums > Essential Money > Savings & Investments > What exactly are BACS & CHAPS payments? (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
What exactly are BACS & CHAPS payments?
Closed Thread
Views: 131,013
Thread Tools Search this Thread Display Modes
# 1
bgscotty
Old 16-04-2008, 7:57 AM
MoneySaving Convert
 
Join Date: Apr 2007
Posts: 159
Default What exactly are BACS & CHAPS payments?

Hello.

I'd welcome a little advice...

I've been asked to make a BACS payment.

Is this the same as setting up a payee within your account so you can make one-off or regular payments?

What's the difference between BACS and CHAPS?

Thank you in advance.

BG
"Life may not be the party we hoped for... but while we are here, we might as well DANCE !!!"
bgscotty is offline
Report Post
The Following User Says Thank You to bgscotty For This Useful Post: Show me >>
# 2
Baldur
Old 16-04-2008, 8:06 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Oct 2006
Posts: 6,473
Default

Basic differences (N.B. very roughly, from memory)

BACS - usually free, takes 3-4 days fo credit receiving account.
CHAPS - usually charged (£20 a time, with one of my accounts), same day transfer.
Baldur is offline
Report Post
The Following 3 Users Say Thank You to Baldur For This Useful Post: Show me >>
# 3
brightonman123
Old 16-04-2008, 8:07 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Feb 2008
Location: Brighton, actually
Posts: 7,791
Default

a bacs payment is a single payment, typically takes 2/3 days from your account to theirs. usually no fee, depending on your tpe of a/c.

a standing order is a regular payment as above- up to you to stop/change amounts and dates; best for 'complete' control(??) of your a/c, and fixed repayment amounts- loans, subscriptions etc.

a direct debit is different, where the payee claims from your a/c (after giving advance notice), whatever is due / agreed- best for variable bills- mobile, gas etc.

chaps is same day (usually for large / urgent amounts); fees negotiable with your bank, but say 40 a time.

** ALWASY triple check the payee's details.. whn its gone, its gone! **
brightonman123 is offline
Report Post
The Following 3 Users Say Thank You to brightonman123 For This Useful Post: Show me >>
# 4
Meltdown
Old 16-04-2008, 2:56 PM
MoneySaving Stalwart
 
Join Date: Dec 2007
Posts: 462
Default

see :
http://www.apacs.org.uk/payments_industry/index.html
http://www.apacs.org.uk/uk_payment_schemes/Bacs.html
http://www.apacs.org.uk/uk_payment_s..._clearing.html
http://www.apacs.org.uk/payment_opti..._payments.html
etc

and then maybe :
http://www.bacs.co.uk/BACS/Consumers/Direct+Debit/FAQ/
http://www.bacs.co.uk/BACS/Consumers...king+payments/
etc

followed by :
http://www.apacs.org.uk/resources_pu.../glossary.html
http://www.bacs.co.uk/BACS/Banks/Resources/Glossary/

Hope that helps.


Disclaimer :
Other websites are available ...
Your blood pressure can go down as well as up if you choose to read them ...
Meltdown is offline
Report Post
The Following User Says Thank You to Meltdown For This Useful Post: Show me >>
# 5
munk
Old 16-04-2008, 3:41 PM
Serious MoneySaving Fan
 
Join Date: Aug 2007
Posts: 983
Default

I would just add that CHAPS payments are generally seen as being 'safer' than BACS payments because it requires a senior manager to check the transfer at each end (at sending and receiving banks) - so if it's a very large amount you're transferring (well over £50,000) then CHAPS can give you some extra peace of mind.

However in reality I don't know if there's a lot of difference in security between BACS and CHAPS, would be interesting to know if there are any stats around that show what percentage of BACS transfers go bad compared to CHAPS.

CHAPS payments are also 'same day' (as long as the transfer is put in before a deadline time, usually mid afternoon or so?), so often if you're transferring huge amounts of money you can save money by using CHAPS because the amount you gain in interest payments from money going same day is more than the cost of lost interest during the 3 days BACS takes to transfer plus the cost of the CHAPS transfer.

Will be interesting to see how this changes in May when BACS transfers become 'same day' - it's questionable whether banks will still be able to justify charging up to £35 for a CHAPS transfer when BACS takes the same amount of time - they'd be saying you're paying the charge just for the peace of mind, which as above is questionable anyway.
munk is offline
Report Post
The Following User Says Thank You to munk For This Useful Post: Show me >>
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 11:10 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 22 October 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • ED SHEERANX (DELUXE EDITION)
  • SAM SMITHIN THE LONELY HOUR (DELUXE EDITION)
  • VARIOUS ARTISTSKEEP CALM & CHILLOUT

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.