EU makes real-time transfers mandatory: this will change from January 9

From Thursday, January 9, 2025, all banks in the European Union will be able to accept real-time transfers in euros. The first stage of a corresponding EU-wide regulation for instant transfers will thus come into force. It was adopted by the EU Parliament in February 2024. The legislative proposal was already introduced in 2022. For consumers, one aspect in particular is pleasing, as the cost situation, which has so far varied depending on the bank, will also be regulated. However, they will not be free of charge.

Most banks and savings banks have been offering real-time transfers for many years. However, one in three payment service providers did not yet offer them in January 2024, according to the EU. Another new feature is the Europe-wide approach, which initially only applies to euro payments. While it is now initially about receiving, banks in the EU will be obliged to offer real-time transfers for sending from October 2025. From 2027, it must then also be possible to send transfers in other EU currencies immediately throughout the EU.

No pricier than other transfers

A real-time transfer must then cost no more than a standard transfer. So if you have to pay 25 cents per transfer, you can be sure that this will also apply to instant transfers in the future. Additional, sometimes higher fees are considered to be the reason real-time transfers have been little used to date – According to the EU Commission, they only account for eleven percent of all transfers. Yet, the demand for real-time payments is high. The fact that the standard transfer takes so long favors providers such as the US-based PayPal. According to the EU Commission, latency in money transfers has so far temporarily blocked almost 200 billion euros every day.

A real-time transfer is defined as a transfer that takes place within 10 seconds and must be available around the clock, 365 days a year. The sender and recipient receive an immediate confirmation. In contrast, the standard transfers used to date were often not credited until the next working day – at weekends, which can be a test of patience.

How security is to be guaranteed

Security is to be guaranteed by an automatic IBAN comparison with the recipient's name. If data does not match, there will be a warning. It will also be possible to set maximum amounts to minimize potential damage. It is also important to the EU that real-time mechanisms are in place to prevent terrorist financing, money laundering and fraud.

However, consumer advocates warn that criminals could still target real-time transfers. Unlike with standard bank transfers, it is more difficult to recover money, warns the North Rhine-Westphalia consumer advice center. It advises increased vigilance when banking online. And under no circumstances should links in alleged e-mails from the bank be clicked on.

(mki)