A new regulation from the European Parliament aims to eliminate instant transfer fees across the eurozone, allowing for free money transfers between bank accounts in France by January 9, 2025. This change will enable quick transactions without additional costs, as many banks will no longer charge for instant transfers. Security measures will also be implemented to combat fraud, addressing concerns over the irreversible nature of these payments, which have become increasingly popular since their introduction in 2017.
Say Goodbye to Instant Transfer Fees
We’ve all been there—needing to send money urgently to a family member or friend, only to be met with a fee for instant service from your bank. Thankfully, this inconvenience is set to become a thing of the past. A new regulation from the European Parliament and the Council of the European Union is paving the way for free instant money transfers across the eurozone, allowing you to quickly reimburse loved ones or pay bills without incurring extra costs.
The New Era of Instant Transfers in France
Under the new regulation, an instant transfer—defined as a transfer via IBAN between two bank accounts—cannot cost more than a standard transfer. This means that, in many cases, instant transfers will be free for consumers in France, as not all banks impose fees for transfers made through their online banking platforms. The days of waiting one to three days for euro fund transfers are over; now, your transactions will be completed in mere seconds. Some financial services, like Wero, have already been offering these instant transfer solutions as alternatives to Paylib.
So, when can you expect these changes to take effect? By Thursday, January 9, 2025, French banks will no longer be allowed to charge higher fees for instant transfers compared to traditional bank transfers. According to BFM Business, this free service has been confirmed by most banks in their new pricing structures effective January 1, 2025. This means that from this date, customers will enjoy free instant transfers.
January 9 will also serve as the deadline for banks to enable their clients to receive instant transfers if they haven’t already. Additionally, banks will have until October 9, 2025, to ensure all customers can initiate these transfers. For banks within the European Union that do not adopt the euro, the deadline extends to January 9, 2027, to comply with this new regulation.
Alongside the rollout of free instant transfers, other measures are being introduced to enhance security. The National Payment Means Committee has expressed support for this new European legislation, which mandates that payment service providers implement free mechanisms to verify the consistency between the recipient’s name and the IBAN entered.
The anticipated changes come in response to a growing fraud concern. While instant payments have been available in the eurozone since 2017—with transfer times reduced to mere seconds—only 6% of all transfers in France were instant as of the first half of 2023. Some banks previously charged an average fee of €1.02, reaching as high as €10 for larger amounts. The European Union is keen to make instant transfers a fundamental aspect of its payment autonomy, particularly in light of competition from major players like Visa and Mastercard.
However, with these advancements come new responsibilities regarding transaction security and combating financial crimes, including money laundering and terrorism financing. The irreversible nature of instant transfers poses unique challenges; unlike traditional transfers where senders can rethink their decision, instant payments cannot be reversed. Alarmingly, reports indicate that during the first half of 2023, the fraud rate associated with instant transfers was twenty times higher than that of traditional payment methods.