banks are required to comply with this provision

Banks in Spain and throughout Europe must offer their customers the opportunity to make Instant transfers without charging additional money. Many banking institutions have been applying commissions for several years when individuals and companies want the money immediately reaches the destination accountwhen it is not owned by the same bank. From now on, according to the new Regulation adopted by the European Parliament, these transactions must be free and reach the recipient in less than 10 seconds.

The new rule aims to avoid waiting times for retail and business clients and provide greater security for transfers. Banks will be responsible for ensuring that they are “available and processed immediately.” As such, current Single Euro Payments Area (SEPA) rules are being updated to prevent errors or fraud when making transfers.

Immediate transfers free of charge for individuals and companies

The European Union pays special attention transfers in euros are carried out by banks in the region, obliging organizations to ensure that they are immediate, regardless of the day and time they are carried out. Moreover, according to the new rules, the money must be in the destination account. in less than 10 seconds. On the other hand, the payer must be informed within the period whether the transferred funds have reached the recipient.

The purpose of this obligation is to prevent the transfer of money ended up on the wrong account by mistake or fraud

. For this reason, the EU also requires payment service providers to offer, at no additional cost, the ability to verify the identity of the recipient. But that’s not all, as in a strengthening of anti-fraud measures, banks should also allow customers to set the maximum amount of money for instant transfers in a simple way and before making a new transfer.

Instant transfers can only take more than 10 seconds if made outside of business hours, due to the risk of a lack of liquidity in euros.

When will instant transfers be free?

The amendment to the Regulation was approved by the European Parliament with 599 votes in favour, 7 against and 35 abstentions. You must wait 20 days after publication in the Official Journal of the European Union, and from then on countries will have twelve months to start implementing the rules and force banks to comply

.

If European banks do not comply with this new rule, understood as necessary to prevent fraud, they will be fined. They will also face sanctions if they fail to check whether their clients have any restrictive measures in place related to terrorist financing or money laundering.