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SEPA Instant Credit Transfer

Instant payments are electronic payments that are processed in real time, around the clock, every day of the year, with the money being available in the payee’s account within ten seconds.

The SEPA Instant Credit Transfer (SCT Inst) scheme and its operational rules were developed by the European Payments Council (EPC) on the basis of the EPC’s existing SEPA credit transfer (SCT) scheme. The SCT Inst scheme became operational in November 2017. SCT Inst payments can be made by all kinds of payers, from consumers to large enterprises.

They work like standard SCT payments except that the transfer of funds between scheme participants occurs within ten seconds and the amount of each transaction is capped at €100,000.

As a member of the Eurosystem, Národná banka Slovenska provides the Eurosystem-operated TARGET Instant Payment Settlement (TIPS) service to the Slovak banking market.

TIPS is based on the SCT Inst scheme and was developed as an extension of TARGET2, the real-time gross settlement system owned and operated by the Eurosystem. TIPS settles payments in central bank money and currently only in euro.

Payment services providers participate in TIPS and SCT Inst currently on a voluntary basis.

In December 2019 Národná banka Slovenska and the Slovak Banking Association produced a National plan for the implementation of instant payments in the Slovak Republic , which sets a deadline and conditions for the implementation of SEPA instant payments in the domestic market.

In Slovakia the instant payments are provided to the clients by the following banks : Slovenská sporiteľňa, Tatrabanka, VÚB banka, J&T Banka and Fio banka.

The Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant credit transfers in euro was published in the Official Journal of the European Union on 19 March 2024. The regulation entered into force on 8 April 2024.

PSPs that offer to their PSUs a payment service of sending and receiving credit transfers shall offer to all of their PSUs a payment service of sending and receiving instant credit transfers.

The Payment service providers established in the euro area providing standard SEPA payments will be required to offer the payment service of instant payments receiving by 9 January 2025 at the latest and the payment service of instant payments sending by 9 October 2025 at the latest. In other non-euro area countries, instant payments in euro will be available two years later.

In addition to the obligation to send and receive instant payments, the new regulation also introduces other requirements linked to their provision.

The fees charged by a payment service provider to customers in relation to sending and receiving instant credit transfers shall not exceed the fees charged by that payment service provider when sending and receiving standard SEPA payments.

The introduction of instant payments also includes a new Verification of Payee service, which will be available to customers in the euro area from October 2025. The aim of this service is to contribute to greater payment security by verifying that the Payee’s account number (IBAN) matches the Payee’s name.

  • What is instant payment?

    It is a payment between different banks, available online 24/7/365 (or 366) days a year, in which the funds are credited to the recipient’s account within seconds.  

  • What is TIPS?

    This is a new service (Target Instant Payment Settlement) for instant payment settlement operated by the Eurosystem.

  • What does the introduction of instant payments mean for clients?

    The introduction of instant payments brings benefits for both consumers and businesses. Consumers can make instant payments for goods and services to traders and to each other. Including across borders within 26 European countries. They allow entrepreneurs to manage the company’s liquidity more efficiently and minimize the need for external financing, e.g. using loans. Over time, instant payments will be able to reduce the share of card or cash payments.

  • What is the difference between the standard and instant payment so far?

    The fundamental difference is in the processing and settlement of instant payments. Standard payments are processed several times a day, in batches, their clearing and settlement will take place within the end of the day. Therefore, the beneficiary at another bank will have the funds available until the next business day. Instant payments are processed individually, i.e. once the bank detects that it is an instant payment, it is processed and settled in real time. The recipient has the funds in the account available immediately, within a few seconds.

  • Are instant payments mandatory?

    The introduction of instant payments is currently voluntary for banks, depending on their decision when to join the system. The legislation introduces an obligation for banks in euro area countries (including Slovakia) to introduce  the provision of an instant payment service by 9 January 2025 at the latest and an instant payment service by 9 October 2025 at the latest. In other European countries, instant payments in euro will be available two years later.

  • Who can make instant payments?

    Instant payments can be used by all clients: natural persons, entrepreneurs, large corporate clients and public institutions. The only condition is that both the payer’s bank and the payee’s bank provide instant payment processing.

  • How much does instant payment cost?

    The amount of the client fee for instant payment is determined by the bank, but it should not be higher than the bank charges for a standard SEPA payment.

  • Can I choose to make the payment as standard or instant ?

    This depends on the business policy of the banks.

  • Is there a limit to the amount of instant payment?

    The maximum amount of instant payment today is €100,000. However, banks can individually set a lower amount as the maximum, for example €5,000, but always only on the side of the bank that sends the money.  

  • What currencies can instant payments be sent in?

    Instant payments can only be sent in euros.