The whole EU already has SEPA Instant Payments which allow the transfer of up to 100.000€ per transaction in under 3 seconds.
This law is just about making it Default
And free if I remember correctly. I never used it because my bank was like “Fees might apply”. Trying to figure out which fees and how much was pretty much impossible.
In Greece is 4-6€ per transaction for every 100€😊 (now we have created the interbanking system called IRIS which you can send money to an IBAN linked with your phone number for free)
From the central bank at slightly above policy interest rates. Cutting out as many middlemen as possible should be imperative for our age of technology.
That is until we have gotten rid of the central banking system …
Which is a fucking insult. The moment i pay anything with a debit card the payment is already noted in my account, just the formal transfer of the money hasn’t happened yet. But both banks already know the transaction and they know that they will do the transaction, everything is there already. But they just didn’t do the switch.
It is like you would go to an airport, have your luggaged checked in, go through the security, board the plane and everything is ready. Also the starting lane is empty. But the flight will wait until the next day, because thats how it has been done since the days of olde.
I’m pretty sure this new ruling is only for bank transfers, not card payments.
Your card payment is technically instant, since you get the goods in the store at he same time as the money leaves your balance. Both parts agree that it happened. The waiting time until the store actually gets the money deposited in their bank isn’t dependent on bank. First it sits in the terminal until it is reported to the card company at the end of day. Depending on the specific agreement they can then accrue several days of transactions before even starting doing the bank transfer. Some do it daily, but I don’t know of anyone doing it more frequently than that. For debit cards that is. Other payment methods can be faster or slower, but it really isn’t the bank to blame for this.
Bank transfers should be faster than card settlements. The current setup is that banks also acrue transactions and exchange them one or two times daily. This has one benefit for users, since at a known time, they can surely know that there won’t be coming more payments that day. This information is f.i. usable for debt collectors.
Doing faster payments is obviously better, but it will also mean that due times need to be specified by the hour and will probably cause some arguments about when a payment was actually done.
Also even with faster payments, interest calculations are done on a daily basis, not hourly, so there’ll still be a technical cut-off time that determines who actually had the money on that day even if it was moved to different accounts several times on a day.
So sure, it may theoretically free up some money, but it won’t make much practical difference anyway.
Yeah but that’s the problem, each country has their own solution, with no interoperability. Whether it’s MobilePay, Swish, Vips or PayPal or whatever, they are all only ubiquitous within their own country.
How is Australia ahead of Europe! We have Osko which allows instant transfer(seconds) upto $10,000 per day. It’s fantastic.
The whole EU already has SEPA Instant Payments which allow the transfer of up to 100.000€ per transaction in under 3 seconds. This law is just about making it Default
And free if I remember correctly. I never used it because my bank was like “Fees might apply”. Trying to figure out which fees and how much was pretty much impossible.
In Germany it’s generally 1€ per transaction 🤡
In Greece is 4-6€ per transaction for every 100€😊 (now we have created the interbanking system called IRIS which you can send money to an IBAN linked with your phone number for free)
I can’t wait for the day when consumers can cut banks out of their lives.
How would you get loans without banks?
From the central bank at slightly above policy interest rates. Cutting out as many middlemen as possible should be imperative for our age of technology.
That is until we have gotten rid of the central banking system …
Nope. It’s not. My Sparkasse charges nothing
That’s rather the exception than the norm. All my banks charge 1€. All Sparkassen I researched you pay at least something:
https://www.sskm.de/de/home/service/echtzeit-ueberweisung.html
There it is 0.75€
Here it is of my Sparkasse, 0€
Don’t doubt that but as I said, this is the exception rather than the norm.
Sparda Bank Berlin also allow free real-time transactions.
Sparda Bank Hamburg however does not.
This is so weird.
That’s a shame
It’s not that it doesn’t exist, but it’s an extra paid option.
On my main bank I don’t have to pay extra for it, but it doesn’t always work
For my bank, instant is free but requires the receiver to also have instant sepa support.
We’re talking about payments across different countries. Inside each country payments have been instant for a while
Not in Germany, at least not when using different banks.
Most banks have an instant payment option that comes with a fee.
Which is a fucking insult. The moment i pay anything with a debit card the payment is already noted in my account, just the formal transfer of the money hasn’t happened yet. But both banks already know the transaction and they know that they will do the transaction, everything is there already. But they just didn’t do the switch.
It is like you would go to an airport, have your luggaged checked in, go through the security, board the plane and everything is ready. Also the starting lane is empty. But the flight will wait until the next day, because thats how it has been done since the days of olde.
It’s also such a dumb idea to cut this feature. People will just substitute bank payments for PayPal.
I’m pretty sure this new ruling is only for bank transfers, not card payments.
Your card payment is technically instant, since you get the goods in the store at he same time as the money leaves your balance. Both parts agree that it happened. The waiting time until the store actually gets the money deposited in their bank isn’t dependent on bank. First it sits in the terminal until it is reported to the card company at the end of day. Depending on the specific agreement they can then accrue several days of transactions before even starting doing the bank transfer. Some do it daily, but I don’t know of anyone doing it more frequently than that. For debit cards that is. Other payment methods can be faster or slower, but it really isn’t the bank to blame for this.
Bank transfers should be faster than card settlements. The current setup is that banks also acrue transactions and exchange them one or two times daily. This has one benefit for users, since at a known time, they can surely know that there won’t be coming more payments that day. This information is f.i. usable for debt collectors. Doing faster payments is obviously better, but it will also mean that due times need to be specified by the hour and will probably cause some arguments about when a payment was actually done. Also even with faster payments, interest calculations are done on a daily basis, not hourly, so there’ll still be a technical cut-off time that determines who actually had the money on that day even if it was moved to different accounts several times on a day. So sure, it may theoretically free up some money, but it won’t make much practical difference anyway.
Then I would suggest switching. Even my Sparkasse which charges for everything through the nose doesn’t charge anything for SEPA Instant Payments
In 2020 only 62,4% of the banks in the EU supported it.
That’s not true for every bank. My bank supports instant payments (for free) regardless of the receiving bank.
Switzerland has had TWINT for almost a decade.
Yeah there’s iDeal in the Netherlands which is also instant
Yeah but that’s the problem, each country has their own solution, with no interoperability. Whether it’s MobilePay, Swish, Vips or PayPal or whatever, they are all only ubiquitous within their own country.
Yeah that I agree with. I have to use Wise to do transfers between the US and EU and it’s kinda clunky and the fees add up.