CHAPS Co is a 'not for profit company', whose funding model recovers its annual operating costs. Currently, CHAPS' funding model is solely based on the volume of payments processed, with each Direct Participant making a 2% minimum contribution, resulting in a minimum cost per Participant of £80,000 per annum in 2014.

From 1 January 2015, CHAPS' new funding model comprises of two elements: a fixed annual shareholder charge of circa £30,000. This charge will decrease proportionately as CHAPS continues to expand its shareholder base. The second element will be a system participation charge, which will be based upon prior year volumes. Combined, these will cover the running costs of the company. These changes provide more transparent pricing for Direct Participants. For 2015, a low volume Direct Participant should therefore see a total annual cost of circa £40,000 – a 50% saving on before.

Phil Kenworthy, CHAPS Co Managing Director said: "With increasing interest in CHAPS Direct Participation, our new funding model is more equitable and will make CHAPS more attractive to both existing and prospective low volume Participants; with this and other initiatives, we are proud to be making participation in the CHAPS payment scheme more straightforward.

Over the last few years, CHAPS has accomplished a great deal, specifically in growing its participation base and enhancing its scheme rules to mitigate risk both within the payment system and the wider payments 'eco-system'. Today's announcement demonstrates our ongoing commitment to both existing and prospective Direct Participants that CHAPS remains cost effective, whilst maintaining the highest standards of operation."