EU-Wide Real-Time Transfers
As of January 9, 2025, all banks in the European Union will be required to accept real-time transfers. This change aims to provide customers with faster and more convenient banking services.
How Real-Time Transfers Work
Real-time transfers allow customers to send money instantly, with the recipient receiving the funds within a maximum of ten seconds. This service will be available 24/7, including weekends and public holidays.
Initial Restrictions
Although banks will be required to accept real-time transfers from January 2025, they will only be required to process outgoing real-time transfers from October 2025. Additionally, banks will not be allowed to charge extra fees for real-time transfers from October 2025.
Security Measures
To ensure the security of real-time transfers, banks will be required to introduce an IBAN name check by October 2025. This check will verify the recipient’s IBAN and name to prevent errors or fraudulent transactions.
Consumer Protection
While real-time transfers offer convenience, they also pose a risk of irreversible transactions. Consumers are advised to exercise caution when making real-time transfers, especially when dealing with unknown recipients.
Future Expansion
The regulation currently only applies to euro transactions, but it is expected to be expanded to include other EU currencies by 2027.