What is an instant payment?
An instant payment, also called a real-time payment, is a transfer of funds between a sender and a recipient that is credited almost immediately to the recipient’s account. Unlike a traditional transfer, which may take several hours or even days, an instant payment is designed to be processed 24 hours a day, 7 days a week , including weekends and public holidays.
How does it work in practice?
- Payment initiation: The sender initiates the payment via their banking app or online payment service. Instant payments apply to SEPA credit transfers in euros, provided the beneficiary’s bank supports the service.
- Transmission and processing: The transfer is routed through the payment network. Funds move quickly from the sender’s account to the recipient’s account.
- Credit and notification: The recipient’s account is credited within 10 seconds, and the sender receives a confirmation. In some cases, reference messages or receipts may be provided for easier traceability.
- Availability and security: Instant payments are available 24/7 and rely on strong customer authentication mechanisms. However, unlike a standard transfer, which can be blocked by the bank within four hours of execution in case of suspected fraud, an instant payment cannot be stopped once confirmed.
Advantages
- Speed and liquidity: Funds are available almost immediately, improving cash flow management for both individuals and businesses.
- User experience: Clients and partners benefit from fast and seamless payments, which can boost e-commerce conversion rates and shorten settlement times.
- Continuous availability: Payments can be made anytime, without being limited by bank opening hours.
- Traceability and reconciliation: Instant payments leave a clear record, making accounting reconciliation easier.
Points of attention
- Always verify the beneficiary’s name in addition to their address and IBAN before initiating a payment.
- Make sure the beneficiary is able to receive instant payments via the chosen channel.
- In case of doubts or unusual transactions, contact your advisor immediately.
- Specific limits may apply to instant payments. Instant payments are optional, and you may choose to deactivate this feature.