Transforming Bank Transfers: A Game-Changer For You! 🎉
Ever wondered if bank transfers could be easier, faster, and cheaper? Well, buckle up! The banking world is experiencing a revolution, and real-time transfers are leading the charge.
Traditionally, bank transfers took at least a day, sometimes even longer if public holidays or weekends were involved. But now, it's a different story!
Real-time Transfers: The Speedy Solution 📡
Say goodbye to waiting days for your money to arrive. In this new era, real-time transfers send money in just a few seconds! The "old-school" transfers might take a day or even longer, but real-time transfers are like a flash - quick, efficient, and reliable.
But hey, you ask, what about the additional fees I've been paying for real-time transfers till now? Well, the good news is, those days are numbered!
The European Union (EU) has been working diligently on a solution to make real-time transfers affordable for all. And the best part? It's almost a done deal!
The EU Council and the European Parliament have agreed to phase out the extra fees for real-time transfers. However, the final decision is yet to be made. But the ball is rolling, and change is knocking at your door!
In the meantime, banks offering standard transfers in euros are mandated to also provide real-time transfers. But, they can still charge a fee, but it should not surpass the costs of regular transfers.
The Future of Bank Transfers 🚀
Historically, real-time transfers have not been as well-received due to the associated fees. But with the nose-diving costs, real-time transactions could soon turn into the new standard!
As reported by the EU Commission, only about 11 percent of all transfers in Europe are processed in real-time. But if the decision to eliminate fees is made, this figure could see a significant jump.
You might be wondering, why the sudden push for real-time transfers? Well, according to the EU Commission, instant payments would increase financial inclusion, reduce costs, and promote a more digital, cashless economy.
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The EU's Plan for Seamless, Secure, and Cost-Effective Transfers:
- No Extra Costs: The EU Instant Payments Regulation (IPR) sets a standard where Payment Service Providers (PSPs) must provide instant payment transactions with no extra costs compared to traditional credit transfers in EUR.
- IBAN Checks: PSPs are required to perform IBAN checks to ensure the payment account identifier and payee name match.
- Sanction Screening: PSPs must perform sanction screening on their customers at least daily, not during the execution of an instant payment.
- 24/7 Availability: The IPR requires PSPs to ensure their rapid payment services are available 24/7, 365 days a year, necessitating robust, resilient systems.
These regulations aim to make real-time bank transfers more accessible, secure, and cost-effective, ultimately paving the way for a modern, digital, and efficient economy in the Single Euro Payments Area (SEPA).
