France has eliminated fees for instant bank transfers as part of a sweeping European Union regulation aimed at improving accessibility and security in digital payments. Effective 9th January 2025, instant transfers, which previously cost users an average of €1.02 per transaction, are now priced the same as standard transfers.
Instant transfers allow funds to move between accounts in less than 10 seconds and are available 24/7, unlike standard transfers, which often require one to three business days for processing. Despite this advantage, adoption of the faster method in France has been slow, with only 6% of transfers being instant during the first half of 2023, according to Capital.fr. Financial authorities believe that fees were a significant deterrent to customers.
To enhance security, the new EU regulation that removed the fees also requires banks to offer a free tool that verifies whether the account name matches the IBAN before a transfer is completed. This measure aims to reduce errors and combat fraud, which is more prevalent with instant transfers. Because these transfers are irrevocable once sent, they are often targeted by scammers, with fraud rates reportedly 20 times higher than traditional methods.
While instant transfers bring significant benefits, there are limitations. SEPA instant transfers are capped at €15,000, making them unsuitable for large transactions. However, for everyday payments, such as reimbursing friends or making small purchases, the convenience outweighs these restrictions.
This move to make instant transfers free of charge supports the EU’s broader goal of reducing dependence on global payment giants like Visa and Mastercard. European alternatives, such as Wero, are emerging to facilitate peer-to-peer payments and strengthen the region’s payment infrastructure.
Although these changes are expected to be widely embraced, experts recommend caution. Instant transfers should only be used with trusted recipients, and users should always double-check account details before sending.
With enhanced security measures and improved infrastructure now in place, instant transfers are poised to become the norm across the eurozone.
Read related:
Why UK tax changes are driving high-net-worth individuals to Monaco: Expert insights
Monaco Life is produced by real multi-media journalists writing original content. See more in our free newsletter, follow our Podcasts on Spotify, and check us out on Threads, Facebook, Instagram, LinkedIn and Tik Tok.
Photo credit: Anna Shvets, Pexels