How to make instant payments between professionals

How does instant payment work?

Here are a few details to help you understand instant payment.

What's the difference between a standard transfer and an instant transfer?

As the name suggests, instant transfers allow you to immediately credit the beneficiary's account. A standard bank transfer generally takes 1 to 3 working days to be executed.

To be more precise, the execution time for a standard transfer is 24 to 48 hours for a domestic transfer. For international transfers, it can take up to 72 hours.

So, for example, a standard transfer made on Monday will not be credited to the beneficiary until Wednesday.

Another major difference is that instant payment is valid 24/7, including public holidays.

In addition, a conventional transfer is generally free of charge, unlike instant transfers.

How long does an instant transfer take?

As the name suggests, an instant transfer is carried out immediately. All you need to do is between 10 and 20 seconds to transfer the funds to the recipient's bank account.

What is the maximum amount for an instant transfer?

According to European regulations, the maximum amount for an instant transfer is 100 000 euros. On the other hand, banks offering this service are free to set a ceiling that is equal to or lower than the legal threshold.

At Banque Populaire, for example, the maximum amount that can be transferred instantly is set at 100,000 euros. BNP Paribas, on the other hand, has opted for a much lower threshold of 15,000 euros.

Individual banks are also free to set specific limits for instant transfers: limit per transfer, limit per week, limit per day, etc.

The benefits of instant payment

Instant payment offers the following advantages

• Fast transfer of funds (compared with traditional bank transfers)

• Operation availability at any time: 24/7

• Instant payment for purchases

The disadvantages of instant payment

Instant payment also has its drawbacks:

• A low threshold . Admittedly, the threshold set by the European Commission is 100,000 euros. However, to be on the safe side, banks are setting lower ceilings of between 1,000 and 15,000 euros.

• International instant transfer not possible.

Specific cases where an instant transfer is not possible

The instant transfer may be refused in the following cases:

• The recipient's bank does not accept instant transfers.

• Transfer amount exceeds authorized threshold by the issuing institution.

• The beneficiary's account is no longer in business.

The risks of instant transfers

The main risk with instantaneous transfers is their irrevocability . In fact, given its speed, once the transfer order has been given, it's impossible to go back. The funds arrive in the recipient's account in a matter of seconds. So you don't have to no time limit for cancelling your transfer in in case of error.

So you need to be extra vigilant when issuing this type of transfer to avoid problems.

Bank charges for instant transfers

Generally speaking, instant transfers cost money. This differentiates them from conventional transfers. On the other hand, some banks issue free instant transfers.

Please note that banks charge for sending instant transfers, not for receiving them. The latter remains entirely free of charge.

Here is a table summarizing the cost of instant transfers at a selection of banks:

Banks tend to generalize free instant transfers . The European Commission is putting pressure on banks that still charge for this type of operation to make them free.

What are the alternatives to instant transfers?

Here are some alternatives to instant transfers:

Payment by credit card

Card payment is a popular method of payment for distance purchases. But its use is subject to higher costs. What's more, this type of payment between 1 and 2 days to be accounted for.

Direct debit

Direct debit is also a payment method, in the same way as bank transfer. However, there are a few exceptions, the initiative for the operation belongs to the supplier . It is therefore the latter who carries out the direct debit, with the agreement of the account holder.

However, this is a payment method that is likely to run up against refusal to take a sample . What's more, unlike instant payment, it doesn't lead to not on the immediate transfer of funds.

Above all, many customers are reluctant to provide a direct debit mandate, for fear of being charged higher amounts, or of losing their power in the event of a dispute.

The classic transfer

Unlike the instant transfer, the classic transfer has a longer execution time. You'll need between 2 and 3 days so that the funds land in the recipient's account.

The instant transfer is a payment method that combines convenience and speed. On the other hand, its low ceiling and the impossibility of making international payments seem to be significant obstacles to its development. Fast, flexible and suitable for international payments, Hero is the ideal alternative to instant payment between professionals .

Frequently asked questions :

Does instant transfer work at weekends?

Instant transfer works around the clock, every day, including weekends and public holidays.

Which bank offers instant transfers?

Most French banks now offer instant transfers. As this is a European requirement, all banks should follow this trend.

Who pays for an instant transfer?

The sender of the funds pays any charges relating to the instant transfer. Receiving an instant transfer is always free of charge.

Can I make an instant transfer abroad?

You can make an instant transfer throughout the SEPA zone. However, this is not not possible outside the SEPA zone.

Can I make an instant transfer in a currency other than the Euro?

Just as it is It is not possible to make an instant transfer outside the SEPA zone, it is also not possible to issue an instant transfer in a currency other than the euro.

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• Terms of payment: template, examples and deadlines to be applied

• Can a customer be forced to pay by direct debit?

• Cash payment on receipt of invoice: can he be forced to pay?

• How do I receive a bank transfer?

• Cash payment: how it works, advantages and disadvantages

• Can I receive a bank transfer on a Sunday?

• What is a payment facility?

• How long does a wire transfer take? Banking time

• Pending payment: 3 minutes to understand everything

• What is an overdue invoice and what are the solutions?

• Invoice due date: when is an invoice due?

• How long does a SEPA direct debit take?