How fast are domestic payments?

7 April 2017

From May 2019, Dutch banks will start offering Instant Payments, allowing domestic payments to reach the beneficiary’s account within seconds, including at night, at weekends and on public holidays. But how fast are payments already?

Cartoon of two Marktplaats users selling and buying a bicycle via direct mobile transfer, without PIN or cash.

Immediately available within the same bank

When the payer and beneficiary of a transfer use the same bank, the amount is usually credited to the beneficiary’s account immediately, including at night, at weekends and on public holidays. In exceptional cases, it takes a few hours.

Between different banks within a few hours

When the payer and beneficiary use different banks, the amount is credited to the beneficiary’s account by the end of the next business day at the latest. In many cases, however, it happens much faster, within a few hours. Payment instructions sent through online or mobile banking before 3 pm on a business day may be credited to the beneficiary’s account the same day. Instructions sent after 3 pm are credited to the beneficiary’s account the following business day in the morning.

All settlements between different banks in the euro area must be checked and processed by the European Central Bank (ECB). They can therefore be processed only during the ECB’s opening hours. The ECB is closed in the evenings and at weekends, so euro payments between banks cannot be processed then.

Receiving payments quickly at weekends and on public holidays

For people who also want to receive money quickly in the evening, at weekends and on public holidays from someone using another bank, various mobile payment apps from banks and non-bank service providers already make this possible. With some apps, the money reaches the payment account almost immediately because the bank or payment institution temporarily advances the funds. Other apps provide confirmation that the money is on its way. The amount itself is then credited definitively to the payment account by the next business day at the latest.

Banks advance debit card proceeds to businesses

Major banks offer to credit their business customers’ daily debit card turnover to their bank account by the following day at the latest, including at weekends and on public holidays. The business’s bank temporarily advances the day’s proceeds itself to meet this commitment.

Business days and public holidays in payments

Saturdays, Sundays and official European Central Bank public holidays are not business days for European payments. On these European rest days and public holidays, including Good Friday and Labour Day, ordinary payments between different banks cannot be processed anywhere in the euro area, including between two different Dutch banks.

Public holidays specific to the Netherlands, such as King’s Day, which the ECB does not observe, are treated as ordinary business days for payments unless they fall at a weekend. They therefore do not delay payments.

These are all ECB rest days and public holidays on which payments between different banks cannot be processed anywhere in the euro area: