New EU Regulations: Ban on Bank Transfers and Elimination of Fees – What Changes?

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Changes in European Regulations on Instant Transfers and Electronic Payments

The European regulations concerning instant transfers and electronic payments have undergone significant changes aimed at promoting the use of traceable payment methods and optimizing economic exchanges within the European Economic Area.
Regulation No.
2024/886 of the European Parliament and Council introduces mandatory requirements for instant transfers while prohibiting certain operations and altering banking commission structures.

Member States are obligated to adopt and publish the necessary provisions to comply with the European regulation by April 9, 2025, subsequently informing the European Commission.
This mandate particularly emphasizes the protection of customer funds by payment institutions along with new rules for banking institutions.

Timeline for Compliance

For the remainder of the regulation, the deadline has been set for October 9, 2025, for all EU countries.
Non-EU countries within the European Economic Area that utilize a currency other than the Euro have until July 9, 2027, to comply.
Let’s explore the implications regarding banking fees and prohibited transfers.

End of High Banking Fees?

The new regulation concerning instant transfers also includes a reassessment of banking fees associated with these operations.
The mandatory nature of instant transfers seeks to alleviate customer discomfort and discourage the use of this payment method.
The European law intends the opposite, promoting transaction traceability and gradually phasing out cash.

For this reason, banks are strictly prohibited from charging fees that exceed those currently applied for standard transfers, ensuring users do not face higher costs due to this shift in payment method.
The EU regulation primarily serves economic objectives.

The wider adoption of instant transfers would immensely benefit users, allowing them to receive or send money rapidly.
Furthermore, an increase in instant transfers would help reduce market concentration, fostering competition among electronic payment services, enabling customers to choose based on their specific needs.

Additionally, many banks are adjusting their policies to align with new European rules, offering new services and lowering fees for certain operations to enhance competitiveness.
Meanwhile, member states, including Italy, are working on reducing fees related to POS transactions, especially for amounts up to €10.

Prohibited Transfers

European regulations also prohibit the transfer of funds between savings accounts.
This entails that in order to make a payment using a savings account, the necessary amount must first be shifted to a current account.
Conversely, incoming payments can only be credited to the creditor’s current account, who may then transfer the desired amount to a savings account.

For Italy, this is not a significant change since existing legislation already restricts operations on savings accounts to withdrawals and deposits.
However, for other EU countries, this presents a new rule.
Italian citizens with foreign deposit accounts should stay informed about changes in terms with their credit institutions.

Alongside the introduction of new instant transfers, traditional transfers will be phased out.
All transactions conducted with this payment method must be completed within a maximum of 10 seconds, except in special cases (e.g., accounts with different currencies), and must be available for ordering 24/7.

Read more about the new regulations for transfers impacting all banking customers.

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