Who makes a transfer, would like to rule that the money arrives as soon as possible. But despite modern technology, the credit is not immediate. How long it takes to reach the destination account depends on how the money transfer is made and where the recipient is located. For a few years, there is a law that sets the deadlines exactly. We have summarized the facts for you, see the following overview:
How long may a transfer take by law?
The approximation of German law to the EU Payment Services Directive also changed the execution deadlines for transfers in the BGB. The duration specified in the law is the maximum period allowed. It is therefore possible that the money will be received in advance – possibly on the same day – in the recipient’s account. In practice, this is done with transfers under the same banking institutions, such as from one bank to another. According to § 675s Abs.1 the following regulations now apply:
When does the time limit for a transfer begin?
According to § 675 n (1) BGB (receipt of payment orders), the period for execution begins when the transfer is received by the bank or savings bank. If the payment order is received on a Sunday or public holiday, the following business day is considered the date of receipt. For credit institutions, only the days are Monday to Friday working days. The bank executing the payment order may consider transfers received shortly before the end of the bank working day as received the following day. For most credit institutions, this is a time after 17 clock, so-called cut-off / cut-off time. Anyone wishing to know the deadline for their bank can read this in the terms and conditions or the special conditions for payment transactions.
How long does an online transfer take?
With an online transfer is meant a money transfer, which the client carries out over the Internet. For this example, the web interface of the bank via a PC or smartphone can be used via app. A payment made at the Bank’s self-service terminal is also considered as an electronic transfer. The allowed deadline is 1 (banking) day, which is explained by the following practical example:
Example 1 : Mr. Meier fills in his transfer order on the PC on Tuesday afternoon. Since his order is received by his bank before 17.00, the amount has to be credited to the recipient on Wednesday.
Example 2 : Ms. Schneider commissions an online transfer on Friday evening at 7.30 pm. The money must be received by law on Tuesday at the receiver. The deadline for the execution begins on Monday, as Ms. Schneider has transferred only after 17.00 clock.
Duration of a paper transfer
The paper-based transfer means a money transfer by means of a conventional bank transfer form, as it used to be widespread. The execution period lasts one day longer than with the online transfer.
Example 1 : Mr Berger submits a completed transfer form to his bank on Tuesday at 3.10 pm. Since the order is made before the deadline, and there is no weekend in between, the recipient may expect the payment to be due on Thursday.
Example 2 : Mrs. Heck submits a completed transfer form to her savings bank at 5.45 pm on Thursday. As the acceptance deadline was already 5 pm, the transfer will not be processed until Friday. Since work is not done on Saturday and Sunday in the bank, the amount of money must be received on Tuesday the following week in the account of the recipient.
How long does a SEPA transfer take?
A SEPA credit transfer is a money transfer that is executed using the SEPA format. This means that the recipient account must be identifiable via an IBAN or BIC. These include all normal domestic transfers as well as transfers to EU countries that are part of the SEPA area and executed in euros. The deadlines are the same as those for domestic transfers. Electronically at the bank’s bank transfer terminal or payment orders sent online must be registered with the beneficiary’s bank within 24 hours of receipt. If you have filled out your SEPA credit transfer with the bank as a receipt, the processing time will take up to 48 hours, see examples above.
Duration of a transfer within the EEA that is not in euros
For a transfer that takes place within the European Economic Area, but in a currency other than Euro, the deadlines for foreign transfers apply. Such a transfer may take up to 4 days in total.
Example : Mrs. Meier wants to transfer money to England. However, this should not happen in euros, but in British pounds. The allowed duration is up to 4 days. The rules for SEPA are no longer applicable, as the EURO currency would be required.
What applies to transfers of funds to non-EEA countries?
First and foremost, this refers to a transfer to countries on other continents, such as the USA, India or Australia. But also Switzerland does not belong to the EEA. There are no legal deadlines for transfers of funds to non-EEA countries. When the money arrives at the recipient depends on which foreign bank the beneficiary keeps his checking account and what the circumstances are in each country.