Faster Payments (FPS) · Concepts · European Finance Observatory

Roles that need it

CHAPSCHAPS is the UK's high-value sterling payment system, operated by the Bank of England, which settles payments one by one in central bank money through its real-time gross settlement service. It is used for interbank payments, large corporate payments and house purchases, and moved to ISO 20022 messages in 2023.
BacsBacs is the UK system for sterling Direct Debits and Bacs Direct Credits, used for salaries, benefits and household bills, and run by Pay.UK. It works on a three-day cycle: files are submitted on day one, processed on day two and settled on day three, with net positions settled at the Bank of England.
Authorised push payment (APP) fraudAuthorised push payment fraud happens when a criminal tricks a person into authorising a credit transfer to an account the criminal controls, for example by posing as a bank employee or a supplier. Since October 2024 UK providers must reimburse most victims, up to 85,000 pounds per claim. The EU PSR adds refunds for some impersonation fraud.
Verification of payee (VoP)Verification of payee is a check, made before a credit transfer is authorised, that the payee name given by the payer matches the name on the account behind the IBAN. The answer is a match, a close match with the right name, no match, or not possible. It is mandatory for euro transfers under the Instant Payments Regulation; the UK equivalent is Confirmation of Payee.

Updated 31 Oct 2026.