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Real-time transfers will become mandatory for banks in the EU from January 9, 2025. We’ll tell you what’s changing and what costs will apply.
In February 2024, the EU Parliament new regulations for real-time transfers decided. The first new regulations will apply from January 9, 2025.
In the future, banks in the EU will have to accept real-time transfers in euros. From October 2025, the next stage will include sending in euros via real-time transfer. Other EU currencies will be mandatory from 2027.
This changes for real-time transfers
Numerous banks and savings banks have been offering real-time transfers for many years. However, according to the EU Commission, only eleven percent of euro transfers in the EU have so far taken place in real time.
The low usage so far was mainly due to the fact that there were often high additional costs for the so-called instant payment. This is set to change in the future, as the EU has also set an adjusted cost structure with its regulations.
How do real-time transfers work?
In the future, real-time transfers must be offered by banks and savings banks in the EU. Within just ten seconds you will be informed whether the transferred amount of money has arrived.
The transfer is also independent of bank working days. Real-time transfers can be carried out 365 days a year and around the clock.
Until now, it usually took one banking day between different banks for the money to arrive via a transfer. If there is a weekend or public holiday in between, it may take longer. According to the EU Commission, this time delay has meant that almost 200 billion euros have been blocked every day.
How much does a real-time transfer cost?
The EU has standardized the costs for a real-time transfer with its new regulation. This is primarily intended to boost the use of instant payment.
The transfer form should not be more expensive than conventional transactions. EU rules require payment service providers to charge the same fees as for “non-instantaneous” transfers.
These risks can occur
The speed of real-time transfers can have risks, as the consumer advice center warns. This makes the return function more difficult. This could pose a risk of misuse, for example via phishing methods.
In order to increase the security of instant payments, payment service providers will in future have to compare the IBAN and the associated recipient name. This should take place automatically in the background.
If inconsistencies arise during the comparison, there should be a warning before the transfer is released. Setting a maximum amount for real-time transfers is also intended to protect against misuse.
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The article Real-time transfer for banks is now mandatory – that’s changing now by Maria Gramsch appeared first on BASIC thinking. Follow us too Google News and Flipboard.
As a Tech Industry expert, I believe that the mandate for banks to offer real-time transfers is a positive development in the financial industry. Real-time transfers not only provide convenience and speed for customers, but also improve transparency and reduce the risk of fraud.
The shift towards real-time transfers reflects the increasing demand for instant and seamless payment options in today’s digital world. With the rise of mobile banking and digital payment platforms, customers expect transactions to be completed quickly and efficiently. Real-time transfers meet this expectation and help banks stay competitive in the market.
However, implementing real-time transfers may pose challenges for banks in terms of upgrading their systems and ensuring security measures are in place. It is crucial for banks to invest in robust technology infrastructure and cybersecurity protocols to protect customer data and prevent unauthorized access to accounts.
Overall, the move towards real-time transfers is a necessary evolution in the banking industry that will ultimately benefit both customers and financial institutions. By embracing this change and leveraging innovative technologies, banks can enhance their service offerings and stay ahead in a rapidly evolving digital landscape.
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