New Regulations on Bank Transfers Impact All Customers

Understanding the Upcoming Changes to Bank Transfers

Bank transfers are undoubtedly one of the most popular and practical payment methods, as they are both trackable and quick in execution and receipt.
With the rise of home banking apps, transfers have become even more common.
Therefore, it is essential to understand that all bank customers are about to face new regulations due to innovations in European legislation.

These changes are not alarming; instead, transfers will soon become even more useful and functional.
Speed and security are key elements of the important updates introduced by the European Parliament, which will affect all EU member states and beyond.
However, not all countries will adapt at the same pace.
In some nations, including Italy, the deadline is approaching fast.
Here’s what to expect.

New Rules for Bank Transfers: Who is Affected and When Will They Take Effect?

The new regulations for bank transfers will impact all banks since they stem from a change in the applicable legal framework.
This applies without distinction across various financial institutions and savings banks in the affected countries.
Furthermore, it’s worth noting that not only EU member states will be affected but also Norway, Iceland, and Liechtenstein.

The deadline for compliance with the amendments introduced by the EU Parliament is set for October 9, 2025, for most nations.
However, non-EU countries using currencies other than the euro—specifically, the Swiss franc in Liechtenstein, the Norwegian krone in Norway, and the Icelandic króna in Iceland—are granted additional time.
Their deadline is July 9, 2027, following negotiations with the EU since they are part of the European Economic Area.

Instant Transfers: A Significant Change

One of the primary novelties in the legislation pertains to instant transfers, which will undergo significant changes.
The European Union has mandated that all money transfers within the EU or the European Economic Area must be finalized within a maximum of 10 seconds.
Thus, every bank transfer must be immediate to promote the use of this trackable payment method and facilitate economic transactions (with complete transparency) between various states.

Furthermore, banking customers will now be able to execute transfers anytime, 24/7, including through online banking.
Ideally, these rapid transactions could completely replace cash, aligning with the EU’s goals to combat crime and tax evasion.

Simultaneously, banks are prohibited from charging fees higher than those currently charged for standard transfers.
Currently, an online transfer costs about €0.37, while over-the-counter transactions average €4.73 within the Sepa area.
The costs are a significant reason why instant transfers are not widely used today, despite being offered by most payment service providers.

In Italy, for example, according to data from the European Payment Council at the end of 2022, instant transfers represented only 5% of all transfers made or received by citizens in the Sepa area.

Enhancing Security in Transfers

The second significant update directly relates to the new immediate transfers the EU intends to implement universally.
According to the EU Parliament’s regulations, service providers will have an additional obligation to safeguard their customers by verifying the consistency between the IBAN number and the beneficiary’s name provided by the payer, whether at the counter or via online banking.

While some payment institutions already conduct this type of verification, making it mandatory is essential to ensure uniform rules across the territory, especially considering the extreme speed of transfers that cannot be revoked or easily contested.
This will help combat errors, fraud, and scams more effectively, along with additional precautions to protect transactions among bank accounts.