The European Parliament has given the green light to new regulations that promise to revolutionize money transfers across the EU. MEPs voted in favor of rules ensuring that funds transferred between bank accounts arrive swiftly, with the added assurance of robust fraud detection measures.
Under the newly adopted regulations, credit transfers will be processed instantly, regardless of the time or day of the week. This means that retail customers and businesses, including SMEs, can expect transferred funds to reach their destination within a mere ten seconds. Moreover, senders will receive confirmation within the same timeframe, providing reassurance and transparency throughout the transaction process.
Importantly, the regulations also prioritize customer safety by mandating payment service providers to implement stringent fraud detection and prevention measures. This includes the immediate verification of the recipient’s identity, free of additional charges. Additionally, customers will have the flexibility to set maximum limits for their instant transfers, adding an extra layer of security against potential fraud or errors.
To further safeguard against financial damage resulting from inadequate fraud prevention measures, customers will have the right to claim compensation from service providers. Furthermore, payment service providers must conduct checks to ensure that neither the sender nor the recipient is subject to any sanctions or restrictive measures related to money laundering or terrorist financing.
Crucially, these advancements in payment technology will not come at a higher cost to consumers. Fees for instant credit transfers in euros will remain consistent with those applied to non-instant transfers, ensuring affordability and accessibility for all.
MEP Michiel Hoogeveen hailed the regulations as a long-awaited modernization of payments within the European Single Market. With funds now transferable within seconds, customers can bid farewell to the inconvenience of waiting days to access their money, making this a significant step forward in streamlining financial transactions across the EU.
The regulations, adopted with overwhelming support, are set to enter into force shortly, with member states granted a 12-month period for implementation. As Europe embraces instant euro transfers, the future of financial transactions looks faster, safer, and more seamless than ever before.