In 2025, the instant transfer became free, but had a significant risk

The European Union is taking a step forward by making instant transfers free, like traditional transfers. From January 9, 2025, these fast transactions, which take ten seconds to complete, will no longer be billed by French banks, bringing simplicity and savings to users, but will also require greater vigilance on their part.

Instant transfers: fast and now free transfers

From January 9, 2025, all French banks will have to offer instant transfers at the same cost as traditional bank transfers, in other words free for the majority of customers. These operations, which allow funds to be transferred in a few seconds, replace the traditional delays of 24 to 48 hours. This change is part of a European desire to democratize this method of payment, which has until now been marginalized by fees deemed dissuasive.

The timetable provides for banks to allow their customers to receive these transfers from January 9, 2025, and for them to make their issue possible for everyone by October 9, 2025. In European Union countries that do not use the euro, this obligation will be postponed to January 9, 2027.

Concerns about security

Unlike traditional transfers, instant transfers are irrevocable. Once the money has been transferred, it is no longer possible to go back, even in the event of an error or fraud. According to data from the Banque de France dating from 2023, instant transfers have a fraud rate approximately 42 times higher than traditional transfers. This observation alarms experts, who point to the increased risks linked to the speed and irrevocability of these operations. However, it is important to note that the fraud rate for instant transfers remains lower than that of bank card payments.

To address these concerns, regulations require banks to implement strengthened control mechanisms. From January, they will have to systematically and free of charge check the consistency between the beneficiary's name and the IBAN before any transaction. This measure aims to limit data entry errors and prevent fraud, but will not be enough to eliminate all risks. Users of instant transfers are therefore called upon to be extra vigilant regarding the recipients of payments.

Source: Capital