What is CHATS?
CHATS (the Clearing House Automated Transfer System) is Hong Kong's real-time gross settlement system for payments between banks, with separate systems for Hong Kong dollars, US dollars, euros and renminbi. Each payment settles individually and immediately on bank business days. Example (invented, for illustration only): a Hong Kong electronics wholesaler receives US$40,000 from a Hong Kong customer by USD CHATS, using its company name, USD account number and its bank's numeric bank code, with no SWIFT code or US correspondent needed.
- Hong Kong runs four CHATS systems: HKD CHATS from 1996, USD CHATS from August 2000, Euro CHATS from April 2003 and RMB CHATS, upgraded in June 2007.
- CHATS settles payments one by one in real time, without netting, which is what real-time gross settlement means.
- USD CHATS settles US dollar payments between Hong Kong banks locally, with The Hongkong and Shanghai Banking Corporation as settlement institution.
- HSBC Hong Kong's August 2026 tariff lists HK$15 for an inward CHATS payment, against HK$65 for an incoming SWIFT payment.
How CHATS works
The Hong Kong Monetary Authority (HKMA) describes CHATS as a real-time gross settlement (RTGS) system: each payment settles on its own, in full, the moment it is processed, rather than being netted against others at the end of the day. Hong Kong runs a separate CHATS system for each of four currencies, each with its own settlement institution.
| System | Launched | Settlement institution |
|---|---|---|
| HKD CHATS | 1996 | HKMA (banks hold accounts with the HKMA) |
| USD CHATS | August 2000 | The Hongkong and Shanghai Banking Corporation |
| Euro CHATS | April 2003 | Standard Chartered Bank (Hong Kong) Limited |
| RMB CHATS | Upgraded June 2007 | Bank of China (Hong Kong) Limited, as clearing bank |
Source: Hong Kong Monetary Authority, Payment Systems. As published on 29 October 2026.
USD CHATS is the most useful for trade. It lets two Hong Kong banks settle a US dollar payment locally, in real time, without sending it through a correspondent bank in New York. The Hong Kong dollar has been linked to the US dollar in a band of HK$7.75 to HK$7.85 since 17 October 1983, so a Hong Kong company that holds US dollars carries little currency risk against its local costs.
RMB CHATS works differently from the others. Its clearing bank, Bank of China (Hong Kong), holds a settlement account with the People's Bank of China and is a member of mainland China's payment system, CNAPS, which is how renminbi in Hong Kong reaches mainland accounts.
Where a business meets CHATS
A trading company in Hong Kong receives US dollars in two ways: by SWIFT from buyers abroad, and by USD CHATS from buyers and partners who bank in Hong Kong. Suppliers with Hong Kong accounts can be paid the same way. The payer needs the account name, the account number and the receiving bank's numeric bank code; a SWIFT code and intermediary bank are not needed.
The cost difference is clear in published tariffs. HSBC Hong Kong's August 2026 tariff lists HK$15 for an inward CHATS payment and HK$65 for each incoming SWIFT payment credited. See our Hong Kong country guide for the full set of rails.
Common mistakes with CHATS
- Sending a SWIFT wire between two Hong Kong accounts. If both banks are in Hong Kong, USD CHATS is usually faster and cheaper.
- Paying after the bank's cut-off. Each bank sets its own daily CHATS cut-off, published in its service terms. A payment instructed late waits for the next Hong Kong business day.
- Expecting weekend settlement. CHATS runs on bank business days. For small Hong Kong dollar payments at any hour, FPS runs 24x7.
- Mixing currencies. Each CHATS system carries one currency. A HKD CHATS payment does not land in a USD account without conversion.
- Leaving out the bank code. A CHATS payment is routed by the receiving bank's numeric bank code, so put it on the invoice next to the account number.
Related terms and how Helm handles it
CHATS works like Fedwire in the United States: real-time, payment by payment. Hong Kong's Faster Payment System handles smaller HKD and RMB payments around the clock, and RMB clearing links Hong Kong to mainland China's CNAPS.
Helm pays out to Hong Kong over CHATS as well as by international wire, and shows the fee for each route before you confirm. The rate, fee and expected arrival are shown before you send.
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USD, EUR and GBP accounts in your company's name, with a named account manager.
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What does CHATS stand for?
Clearing House Automated Transfer System. It is Hong Kong's real-time gross settlement system for interbank payments, with separate systems for HKD, USD, EUR and RMB.
What is USD CHATS?
USD CHATS is Hong Kong's real-time system for US dollar payments between banks in Hong Kong, launched in August 2000 with The Hongkong and Shanghai Banking Corporation as settlement institution.
Is CHATS the same as FPS?
No. CHATS settles payments between banks on business days, in four currencies. FPS, launched on 17 September 2018, runs 24x7 for Hong Kong dollars and renminbi but does not carry US dollars.
What details do I need for a CHATS payment?
The beneficiary's account name, account number and its bank's numeric bank code. A SWIFT code is not needed for a payment between Hong Kong banks.
How much does a CHATS payment cost?
Banks publish their own fees. HSBC Hong Kong's August 2026 tariff lists HK$15 for an inward CHATS payment.
References
- Hong Kong Monetary Authority: Payment Systems (HKD, USD, Euro and RMB CHATS)
- Hong Kong Monetary Authority: Faster Payment System
- Hong Kong Monetary Authority: Linked Exchange Rate System
- HSBC Hong Kong: Commercial Banking complete tariffs, August 2026
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.