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Members of the European Parliament (MEPs) have formally approved new regulations to guarantee swift transfer of funds directly into the bank accounts of retail customers and businesses throughout the European Union.
The latest regulation aims to eliminate delays in the receipt of funds for retail clients and businesses, particularly small and medium-sized enterprises (SMEs). The European Parliament further clarified that this measure is intended to bolster the security of financial transfers.
Banks and other payment service providers (PSPs) are now required to guarantee affordable and immediate processing of credit transfers. The newly established regulations define “instant” credit transfers as transactions that reach the recipient’s account within 10 seconds, regardless of the time or day.
Within ten seconds, the payer must also be informed whether the transferred funds are available to the intended recipient. PSPs situated in the euro area have a nine-month timeline to ensure their readiness to receive instant credit transfers in euro and 18 months to initiate them.
Member states not using the euro as their primary currency must also adhere to the rules if their accounts facilitate regular euro transactions, though a more extended transition period applies. An exception allowing a delay in payment within ten seconds is granted for such accounts outside business hours, addressing concerns about access to euro liquidity.
New rules for instant credit transfers in euros:
These rules aim to ensure fair pricing, security, and compliance for instant credit transfers in Europe.
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