EU Instant Payments (2025–2027): deadlines, fees, and the IBAN name check
Instant payments become the default for euro transfers
A new EU regulation forces payment providers to support 10-second euro transfers, 24/7. Banks won’t be allowed to price “instant” above the normal transfer and must warn you when the name doesn’t match the IBAN you entered. Here’s the rollout and what changes for households and SMEs.
- Speed: funds delivered in ≤10 seconds, day and night.
- Price rule: instant cannot cost more than a standard SEPA credit transfer.
- IBAN name check: payers get a mismatch warning before sending.
- Rollout: euro-area providers first in 2025; non-euro EU follows through 2026–2027.
What changes for customers and SMEs
- Real-time settlement: invoices clear on evenings/weekends; fewer late-payment headaches.
- Pricing: banks can charge, but not more than a normal transfer.
- Channels: instant must be available in online/mobile banking, not just at a branch.
- Fraud friction where needed: risk-based limits are allowed, but core availability is 24/7.
Deadlines: when providers must support instant SEPA
| Provider group | Receive instant euro transfers | Send instant euro transfers | Notes |
|---|---|---|---|
| Euro-area banks & PSPs | 2025 | 2025 (later in year) | 24/7 availability; same AML/KYC standards. |
| EU banks & PSPs outside the euro area | 2026 | 2027 | Longer phase-in to align systems and liquidity. |
Price rules: instant can’t cost more than a normal transfer
The regulation caps fees: an instant transfer must be priced at no more than the bank’s standard credit transfer in euro. Providers can’t hide a “speed premium”, which should push instant to become the default.
IBAN name check: how the payee-verification warning works
Before you send, your provider compares the beneficiary name you entered with the name on the destination IBAN. If there’s a mismatch, you see a warning and can correct or cancel. Minor differences won’t block the payment, but the check should catch common invoice-swap frauds.
“Instant becomes useful only if banks keep the fee fair, the IBAN check visible, and the service up 24/7.”
Behind the scenes: fraud controls and screening
- Streamlined sanctions and AML screening to meet 10-second delivery times.
- Risk-based friction allowed (e.g., temporary limits when fraud spikes).
- Dispute and refund processes remain; aim is fewer misdirected transfers at source.
Who must comply
The obligations apply to payment service providers (banks, licensed payment and e-money institutions) that offer euro SEPA credit transfers. If a provider offers the standard transfer, it must also offer the instant version on the same accounts and channels.
Fix-EU take: useful reform, watch the small print
This is one of the rare Brussels rules that helps ordinary users immediately. The risks are quiet carve-outs: hiding instant behind awkward menus or inventing offset fees elsewhere. Supervisors should enforce the price cap, the IBAN name check, and 24/7 uptime with real penalties—otherwise “instant” becomes another promise that arrives late.