Which statement about CHAPS is true?

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Multiple Choice

Which statement about CHAPS is true?

CHAPS is a high-value sterling payments system used in the UK for urgent transfers. The key idea is that it’s designed for large payments that need to move quickly, not for small ones. Because banks charge a fee for CHAPS transfers, it’s not inexpensive, so saying it’s always free or that it’s for small-value transfers isn’t accurate. CHAPS also provides same-day settlement when sent before the bank’s cut-off, so it does guarantee a fast transfer. Therefore, the true statement reflects that CHAPS can be expensive due to bank charges and is intended for large-value transfers, not small-value ones.

CHAPS is a high-value sterling payments system used in the UK for urgent transfers. The key idea is that it’s designed for large payments that need to move quickly, not for small ones. Because banks charge a fee for CHAPS transfers, it’s not inexpensive, so saying it’s always free or that it’s for small-value transfers isn’t accurate. CHAPS also provides same-day settlement when sent before the bank’s cut-off, so it does guarantee a fast transfer. Therefore, the true statement reflects that CHAPS can be expensive due to bank charges and is intended for large-value transfers, not small-value ones.

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