Transfers in a flash!

A banknote flying through the sky quickly

Ever had to wait for money to finally arrive in your account? That will soon be a thing of the past – welcome to the instant payments era!

What are instant credit transfers?

Instant credit transfers, also known as “instant payments”, make it possible to transfer money from one account to another in a matter of seconds. This is in contract to classic SEPA transfers, which often take a bank working day, with instant payments available around the clock – so also in the evening, at the weekend or on public holidays – 24/7 and 365 days a year. The money arrived in the payee’s account within 10 seconds.

What applies when?

The European Parliament has decided that instant payments should become standard throughout the entire EEA. The aim is to accelerate cashless payments, to make them more secure and to make them equally accessible for everyone.

Since January 2025 all banks must have been able to receive instant payments.
From October 2025 they must also be able to send instant payments.
From January 2027 banks must also be able to receive payments in other EU currencies,
And from July 2027 to also make such payments.

What is in it for you?

No waiting time: payments are there in seconds
No extra cost: Instant payments are not allowed to cost more than classic SEPA transfers
Control: You can set personal maximum limits
Security: The payee’s name and IBAN will automatically be checked from October 2025.

How does the name and IBAN check work?

Before the money is sent, the bank automatically compared the name entered with the payee’s IBAN.

The check is conducted for every instant payment, and not only the first time a payment is made.
For joint accounts, one name is enough, and trading names/brands should also be recognised.
Where there are minor typos or variants in the names, an “almost matching” name is often recognised, and the bank shows the apparent correct name for checking purposes. This helps to catch input errors and inverted numbers quickly.

If the details don’t match, then you as the person making the transfer are warned. You may then choose to make the payment regardless or to cancel the transfer process.

What is important for you to know?

Obtain information from your bank
Your bank must open all usual transmission methods for instant payments: i.e. Teller services at your branch, terminals or telephone banking, and is required to check that the payee name and IBAN match
Change your app or online banking settings
It may be sensible to set a maximum limit for payments if your frequently pay online
Where the bank makes mistakes or breaches obligations (for example by failing to compare payee name and IBAN) you have a right to reimbursement

Instant payments are no longer a pipedream – step-by-step they are becoming the new standard. They bring many advantages, but as with every innovation: make sure you are well informed, remain alert, and know your rights.

SEPA:
the Single Euro Payments Area. SEPA is made up of all EU member states, EEA states (Norway, Iceland, Liechtenstein) as well as additional countries such as Switzerland, Monaco, Andorra and the Vatican.

IBAN – International Bank Account Number:
a standard international account number.
In Austria, IBANs are made up of 20 characters, always starting with AT, followed by two checksum digits followed by the national account number.

EEA – European European Economic Area:
a grouping consisting of the EU Member States as well as Norway, Iceland and Liechtenstein.