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France Enforces EU Payment Rules: Name‑IBAN Checks and Free Instant Transfers

The overhaul targets IBAN‑substitution fraud to speed euro‑area payments.

Overview

  • Starting October 9, banks in France must verify that a recipient’s name matches the IBAN within roughly five seconds, flagging mismatches so senders can correct or cancel.
  • Instant SEPA transfers now must be offered to all customers at no extra cost online, moving funds in under ten seconds around the clock.
  • Once validated, instant transfers are irreversible, increasing the importance of heeding any warning returned by the name‑IBAN check.
  • Regulators cite €183 million lost to IBAN‑substitution scams in 2024 and forecast up to €200 billion a day unlocked from quicker payment settlement.
  • Early reactions highlight fee‑free peer reimbursements and potential merchant savings versus card payments, even as some users remain wary because of scam concerns.