Regulation that makes instant payments mandatory has come into effect

On March 19, a European Commission regulation came into effect making instant payments mandatory. As a result, payment services, such as banks, must offer the sending and receiving of instant payments in euros.

The regulation, which the European Commission adopted last month, came into effect on March 19, the Dutch Ministry of Foreign Affairs reported on Monday. . Under the new rules, payments in euros must be completed within ten seconds, regardless of the day or time and without additional costs. The sender must also know within ten seconds whether the money has arrived at the recipient. Member states will have twelve months to apply the legislation.

At the beginning of 2022, only 11 percent of all transfers in euros in the EU were instant, the ministry writes. The regulation does not yet apply to countries outside the eurozone, because they need more time to adapt to the new rules.

In addition, providers of instant payments must check whether the name and IBAN number of the beneficiary agree. In this way, the payer can be warned of possible errors or fraud before carrying out a transaction. This obligation also applies to regular transfers.

Addition:The regulation entered into force last week, but member states have twelve months to apply the legislation. The title has also been changed.