On April 15, a new European Commission directive was implemented requiring instant payments to be made compulsory. This means that payment services, such as banks, are now obligated to offer instant payment services for transactions conducted in euros.
The directive, which was approved by the European Commission in the previous month, officially went into effect on April 15, as reported by the Dutch Ministry of Foreign Affairs. According to the new regulation, all payments in euros must be processed within ten seconds, regardless of the day or time, and with no additional charges. Additionally, the sender must receive confirmation within ten seconds that the funds have been successfully transferred to the recipient. Member states have been given a twelve-month period to fully implement the directive.
As of the start of this year, only 11% of all euro transfers within the EU were conducted as instant payments, the ministry disclosed. It is important to note that this regulation does not currently apply to countries outside of the eurozone, as they require more time to adjust to the new regulations.
Furthermore, providers offering instant payment services are now required to verify the accuracy of the beneficiary's name and IBAN number. This additional step will help identify any potential errors or fraudulent activity before a transaction is finalized. This verification process also applies to standard transfers.
While the directive officially came into effect last week, member states have been given a twelve-month period to enforce the legislation. The title of the directive has also been modified.
English (US)