How businesses accept crypto payments and settle to fiat safely.
Table of contents
- The 30-second decision map
- How the main rails work
- SEPA vs SWIFT: when each wins
- BACS payment: best for recurring, bulk & payroll
- CHAPS payment: when you need same-day high-value GBP
- Faster Payments: real-time everyday GBP
- SWIFT payment system
- SWIFT alternatives you should consider
- Costs, speeds & limits at a glance
- Risk, compliance & operational notes
Modern businesses, e-commerce firms, financial directors, and payroll teams rely on dependable rails for moving money across borders or domestically. Understanding how each system works helps companies pick the right channel for cost, speed, and compliance. This guide walks through the main online payment systems, explains where they fit best, and highlights how to make informed choices.
The 30-second decision map
A quick framework helps narrow down which rail to use:
| Question | If this applies | Rail to consider |
|---|---|---|
| Currency | EUR only | SEPA |
| Currency | GBP only | BACS / CHAPS / Faster Payments |
| Geography | Global, multiple currencies | SWIFT |
| Urgency | Instant or same-day | Faster Payments / CHAPS / SEPA Instant |
| Volume | Bulk recurring (payroll, suppliers) | BACS |
| Transparency | Need track-and-trace | SWIFT gpi or local instant schemes |
How the main rails work
It is important to separate rails from providers. Rails are the infrastructure where settlement happens, while providers (banks, PSPs, fintechs) simply connect to them.
SWIFT is primarily a messaging system. It sends standardized payment instructions between banks worldwide, but the actual settlement moves through correspondent accounts.
SEPA, Faster Payments, CHAPS, and BACS are clearing and settlement systems in their own right. They process transfers within their networks, usually in a domestic or regional currency.
This difference explains why some rails are instant while others depend on time zones, intermediaries, and cut-off times.
SEPA vs SWIFT: when each wins
- SEPA: Limited to EUR within the SEPA zone. Payments usually settle in one business day, and SEPA Instant allows near-real-time transfers if both banks support it. Costs are low, and there are no foreign exchange steps.
- SWIFT: Works with almost any currency and country. Transfers take 1–5 business days, depending on correspondent chains. Fees are higher and can involve deductions at intermediary banks, but it is the only option for many global corridors.
BACS payment: best for recurring, bulk & payroll
A BACS payment is the backbone of UK salary, pension, and supplier payouts. Two forms exist: Direct Debit (collections) and Direct Credit (outgoing). Settlement takes up to three business days.
CHAPS payment: when you need same-day high-value GBP
A chaps payment is designed for time-critical, high-value GBP transfers within the UK. Completion is same-day if instructions meet the bank’s cut-off.
Faster Payments: real-time everyday GBP
The UK faster payments scheme delivers transfers almost instantly, 24/7.
SWIFT payment system
- Speed: 1–5 business days, though SWIFT gpi accelerates and adds tracking.
- Cost: fees at origin, intermediary, and receiving banks.
- Coverage: over 200 countries, hundreds of currencies.
SWIFT alternatives you should consider
- Regional rails such as SEPA Instant in Europe or Faster Payments in the UK.
- Domestic networks like ACH or RTP in the US.
- Multi-currency accounts offered by payment providers.
- Hybrid payout chains bypassing traditional SWIFT intermediaries.
Costs, speeds & limits at a glance
| Rail | Currency | Geography | Typical speed | Fees | Limits | Intermediaries | Traceability | Recall options | Best for | Notes |
|---|---|---|---|---|---|---|---|---|---|---|
| SEPA | EUR | SEPA zone | 1 day / Instant | Low | Bank-set | None | Reference only | Limited | EUR trade | Cheap, efficient |
| SWIFT | Multi | Global | 1–5 days | High, variable | None | Often 1–3 | gpi / refs | Limited | Global transfers | Coverage unmatched |
| BACS | GBP | UK | 3 days | Very low | Bank-set | None | Batch refs | Yes | Payroll, suppliers | Mass payments |
| CHAPS | GBP | UK | Same day | Higher | No strict | None | Full refs | No | High-value, urgent | Property, treasury |
| Faster Payments | GBP | UK | Seconds | Low | Bank-set | None | Full refs | Limited | Everyday transfers | 24/7 |
Risk, compliance & operational notes
- Sanctions and restricted jurisdictions can block transfers even if technically supported.
- Chargebacks and recalls differ across rails.
- Compliance checks may delay otherwise fast transfers.
- Operating hours matter for non-instant systems.
