November 10, 2023, 5:33 p.m. |
Reading time: 3 minutes
Many people are familiar with the problem: You need to transfer an amount of money urgently, but the transfer takes a little longer. Real-time transfer can help here, but there is still a catch. But that should now be over. The EU Council and the European Parliament have decided this.
Transfer money in just a few seconds – this is already the standard with PayPal, for example. Many other banks also offer real-time transfers (SEPA Instant Payment), but you often have to pay extra for this service. This could soon be over, because according to a provisional agreement by the EU (Council and Parliament), real-time transfers are to be implemented as a free standard.
Banks should offer real-time transfers free of charge in the future
Many banks offer real-time transfers, but at an additional cost. If you don’t want to or can’t wait several days for a transaction, you can opt for this instant payment.
In a press release from EU Council It says: “According to the preliminary agreement on the regulations, payment service providers such as banks that offer standard transfers in euros must also offer the sending and receipt of instant payments in euros. The fees that may apply shall not be higher than the fees for standard transfers.”
Since standard transfers are free anyway, and according to the EU, real-time transfers must not cost more than the standard method, instant payment must also be offered free of charge in the future.
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The regulation has been planned for a long time
The EU had already discussed such a measure and free real-time transfers in October 2022 discussed. According to the EU, real-time transfers should take place in a maximum of 10 seconds and can take place outside bank business hours. At the beginning of 2022, only 11 percent of transactions were made via real-time transfer.
Service providers who offer instant payments in the future will then also have to compare the IBAN and the name of the payment recipient. The aim is to protect the payer from errors or fraud.
Also read: Erste Bank foregoes cash – will others follow?
Important step for the EU
While payment service providers such as PayPal from the USA have been offering free real-time transfers for years, this was not yet the case here or in the EU. Too many banks had always charged a fee for instant payments. The EU says: “The new regulations will improve the strategic autonomy of the European economic and financial sector.” This could make European money transfers more independent of non-European services.
From a technical point of view, it probably won’t be a problem since real-time transfers are already offered anyway. The only important thing is that both banks or institutions offer sending and receiving money using the instant method.
The new regulation will in future apply to all 27 EU states as well as Norway, Iceland and Liechtenstein. But before the decision becomes legal, the law must first be approved by the states and parliament. After a certain transition period, real-time transfers will then be standardized.