The European Chamber gave the green light to new regulations that will revolutionize the financial sector in the European Union (EU). These measures, adopted by a strong vote of 599 in favor, 7 against and 35 abstentions, will force banks and payment providers to process euro transfers in less than 10 seconds, offering these instant payments at the same price as traditional transfers.
Michiel Hoogeveen, the Dutch MEP responsible for the dossier, stressed the importance of this decision for consumers and businesses, noting that it eliminates the waiting of several working days to access funds. In a statement, he hailed the benefit of transferring money in a matter of seconds at any time of day.
The new regulations ensure that instant transfers are processed immediately, regardless of when they are made, ensuring that the money reaches the recipient in less than ten seconds. In addition, the payer must receive a notification within this period confirming the execution of the transfer.
These regulations also stipulate that the cost of instant transfers may not exceed that of normal euro transfers, both to the sender and to the receiver.
In terms of security, measures will be implemented to improve fraud detection and prevention, preventing funds from being misappropriated by mistake or fraud. Payment providers shall provide customer verification services free of charge, and in the event of discrepancies between the name of the sender and the holder of the receiving account, corrective action, including compensation for financial loss, shall be taken.
In addition, banks and payment providers should verify whether their customers are sanctioned or subject to anti-money-laundering and anti-terrorist financing measures.
Once in force, EU countries will have one year to implement these new rules, marking a milestone in the facilitation of financial transactions in the region.
(Reference image source: Ibrahim Boran at Unsplash)