SEPA Instant transfers are designed to be processed within seconds, including weekends and holidays, if both the sender and recipient banks are participants in the SEPA Instant scheme. To confirm whether your bank supports SEPA Instant, you can refer to the full list of supported banks here.
It's important to note that payments are not guaranteed to go through SEPA Instant routes, as it depends on various factors, including the support for SEPA Instant by both the sender and recipient banks. Banks will strive to use SEPA Instant whenever possible, but in cases where it's not available, payments will be processed through SEPA Credit Transfer, with a processing time of up to 2 working days.
Payments can be moved from SEPA Instant to Standard SEPA for a number of reasons:
Lack of Consent:
Regulatory Requirements: Under PSD2 regulations, banks must have explicit consent from users to perform SEPA Instant transfers. This ensures that users are aware of the potential higher fees and the nature of instant transactions.
User Agreements: When opening your account or setting up your payment preferences, you may not have opted into SEPA Instant services. Without this consent, banks are obligated to default to standard SEPA transfers.
Availability of Funds:
Sufficient Funds: SEPA Instant transfers require the immediate availability of funds. If there’s any doubt about the availability, the bank may switch to a standard SEPA transfer to avoid potential overdrafts or rejected payments.
Service Downtime or Limitations:
Technical Issues: Sometimes, technical issues or service downtimes can prevent SEPA Instant transfers from being processed. In such cases, banks may revert to standard SEPA transfers to ensure the payment goes through.
Bank Policies: Some banks may have specific policies that limit the use of SEPA Instant transfers to certain times or amounts. If your payment doesn’t meet these criteria, it may be automatically moved to a standard SEPA transfer.
Risk Management:
Fraud Prevention: Instant transfers can be a target for fraud due to their speed. Banks may move suspicious transactions to standard SEPA transfers for additional verification and fraud prevention measures.
Compliance Checks: Banks perform compliance checks to meet regulatory standards. If a payment requires additional scrutiny, it might be shifted to a standard SEPA transfer to allow more time for these checks.
How is the PSU impacted?
SEPA Instant transfers might incur higher fees compared to standard SEPA transfers. However, the primary concern is the timely availability of funds rather than the cost. Any fee benefits of standard transfers are overshadowed by the potential inconvenience caused by delays.
Also, SEPA Instant operates 24/7, including weekends and holidays. Standard SEPA transfers are processed only during regular banking hours and on business days. Therefore, if a SEPA Instant transfer is moved to standard, any transaction initiated on weekends or holidays will be processed only on the next business day.
What can the PSU do?
Review Your Consent: Ensure that you have explicitly given consent for SEPA Instant transfers. Check your banking agreement or contact your bank to confirm.
Update Preferences: If you frequently need instant transfers, update your payment preferences and agreements with your bank.
Monitor Funds: Keep sufficient funds in your account to cover SEPA Instant transfers and avoid any potential downgrades to standard SEPA transfers.
Stay Informed: Regularly review bank notifications and updates regarding SEPA services to be aware of any changes in policies or technical issues.