The cost of instant transfers cannot be higher than regular transfers. This was created by the European Parliament, which recently gave the green light to a package of rules to protect customers. . The text, which has already been agreed with governments, updates the existing rules of the single euro payments area (SEPA). The new regulation on instant payments requires transfers to reach customer accounts within 10 seconds after the payment is made by the person making the payment, even on the weekend. Additionally, as we mentioned at the beginning, credit institutions and other service providers will not be able to charge their customers higher fees for instant transfers than normal money transfer transactions in euros. As is often the case today.
Bank transfers: What changes with the new regulation approved by the EU?
Banks that offer “regular” transfers for free will therefore have to make instant transfers free as well. Credit institutions that want a “penny” instead will need to equalize the rates between the two types of transfers. Therefore, EU regulation does not ensure that the service is free. This will continue to come at a cost for many account holders, but it’s important to note that not all banks charge for money transfers.
Banks will need to verify that the IBAN is correct
The European Commission claims that instant payments offer fast and convenient solutions for citizens in everyday situations, such as receiving funds immediately in an emergency or instantly splitting shared costs across various social contexts. It also improves cash flow management for public administrations and businesses, especially SMEs, allows charities and NGOs to access funds quickly, and encourages banks to develop innovative financial services and products. Regarding security, the Instant Payments Regulation requires instant payment providers to verify the accuracy of the IBAN and beneficiary name before a transaction is processed to prevent possible errors or fraud. This obligation will also apply to normal transfers.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
