Payee for CHAPS Payment with Purpose Codes

Making a CHAPS Payment with Purpose Codes

This guide explains how to structure your API call to make a UK CHAPS payment that includes the new, mandatory categoryPurposeCode and purposeCode. This is required for all CHAPS payments as part of the move to the ISO 20022 global messaging standard.

These codes provide a clear, standardized reason for the payment, which helps improve processing and combat financial crime.
Please note, that this is required for BUSINESS type of Payees.

Step 1: Identify the Reason for Your Payment

Before making the API call, determine the nature of your payment. Is it for a property purchase, a salary payment, or a tax settlement? This will help you select the correct codes from the API Reference documentation.

Step 2: Structure the paymentSchemeDetails Object

When making a POST /payments request for a CHAPS payment, you must include the paymentSchemeDetails object. This object contains the necessary codes.

The basic structure looks like below, scheme: This must always be "CHAPS".

{
  "paymentSchemeDetails": {
    "scheme": "CHAPS",
    "purposeCode": "PCOM",
    "categoryPurposeCode": "OTHR"
  }
}

categoryPurposeCode

The Category Purpose Code can be any of the following values:

purposeCode

The purposeCode specifies the precise reason for the transaction. The allowed values are grouped by category below.

Finance & Accounting

Securities & Investments

Property Transactions

Goods, Services & Commercial

Government & Tax

Other

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Review Process

You can find the complete list of categoryPurposeCode and purposeCode on this Bank Of England summary.

Step 3: Make the API Call

Construct your full payment request, ensuring the paymentSchemeDetails object is included correctly.

{
  "from": "acc_a1b2c3d4",
  "to": "payee_e5f6g7h8",
  "amount": "150000.00",
  "currency": "GBP",
  "reference": "Final property payment",
  "paymentSchemeDetails": {
    "scheme": "CHAPS",
    "purposeCode": "PCOM",
    "categoryPurposeCode": "OTHR"
  }
}

By providing these details, your payment will be compliant with the latest CHAPS requirements, ensuring it is processed without delay.