Some figures relating to the use of bank transfers in France
5 billion is the number of transfers made in France in 2022. Unlike card payments, transfers are mainly used in business-to-business relationships. With more than €77 billion exchanged through them in the first half of 2023, in France1, it recorded an increase of more than 95% compared to the same period last year3.
Launched in 2014 and generalized in 2017, instant transfers are gradually becoming established in the banking and financial ecosystem, until they become mandatory (sending and receiving) for all PSPs in the eurozone from 08/01/2025. In 2022, its use increased by 85% in volume and 135% in value in France3.
Complete glossary of bank transfer payments
Find below the definitions of all the terms used when paying by bank transfer.
Bank transfer
Financial transaction allowing money to be transferred electronically from one bank account to another.
There are different types of bank transfers :
- Immediate transfer (also known as classic or standard): The most traditional form of bank transfer, where the transfer order is executed as soon as it is validated by the sender. The funds are captured and then transmitted during the next bank transfer. It then takes 1 or 2 business days for the funds to be available in the beneficiary’s account.
- Instant credit transfer: A transfer executed immediately between two accounts within the SEPA zone. Unlike a traditional SEPA credit transfer, funds are available in less than 10 seconds, regardless of the day or time. The use of instant credit transfers depends primarily on the originating bank, which may or may not offer this service.
- Deferred transfer : Transfer of funds whose transfer order is programmed in advance by the sender, for a future date.
- Standing order : Recurring transfer executed at regular intervals (daily, monthly, annually, etc.) for recurring payments such as subscriptions or split payments.
- One-off transfer: Transfer of funds made following a transfer order for a specific transaction, on a given date.
- Domestic bank transfer : Transfer made between two accounts located within the same country.
- SEPA Credit Transfer (SCT): A transfer made in euros between two accounts located within the European Economic Area. The SEPA credit transfer has enabled the European Union to simplify and harmonize all transfers made within the zone.
- International bank transfer: A transfer of funds between two accounts outside the SEPA zone, usually in a foreign currency. SWIFT is the main network for the exchange of international financial flows, with most banks and financial institutions members.
- External or interbank transfer : Transfer made between two accounts located in separate banks.
- Internal or intrabank transfer: Transfer made between two accounts located in the same bank (e.g.: transfer of funds to a savings account, transfer between a payer and a beneficiary who is a customer of the same bank, etc.).
- Initiated transfer or payment initiation (PSI) : A type of transfer in which the transfer order is not issued by the payer, but by the beneficiary. The latter sends a transfer request to their client (including the amount, reference, date, etc.) who can validate or reject it. Once accepted, the funds transfer is carried out in the traditional manner, from account to account.
SEPA zone
European Union initiative to harmonize payments in euros for all entities in the 27 member countries, the United Kingdom, Monaco, the Vatican, Andorra, San Marino, and the four EFTA member states.
SEPA Credit Transfer (SCT) is a credit transfer system that allows debtors to transfer funds online, in euros, between two accounts located within the zone.
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
The SWIFT (Society for Worldwide Interbank Financial Telecommunication) network is a secure messaging system used by international banks and financial institutions to exchange information and payment instructions by wire transfer.
Issuing bank
The financial institution responsible for processing and executing its customers’ credit transfer orders.
Acquiring Bank
The merchant’s financial institution that enables the acquisition, processing, and deposit of funds received by transfer, as well as the maintenance of its accounts.
Contractor
The legal entity or natural person who initiates the payment request by transfer. The latter is responsible for providing the instructions necessary for the execution of the transaction (bank details, amount, date, etc.).
Issuer
A natural or legal person who issues a transfer order, i.e. who instructs their bank (issuing bank) to transfer funds from their bank account to that of a beneficiary. The beneficiary is responsible for providing the instructions necessary to execute the transfer (information on the beneficiary, the amount to be transferred, the date, etc.).
Beneficiary/Acceptor
The merchant, i.e., the natural or legal person who will receive the funds from a financial transaction.
Payment order
An instruction given by the sender to their bank (issuing bank) to transfer a sum of money from their account to that of a beneficiary. This order generally includes information about the beneficiary, the amount to be transferred, the execution date, etc.
Bank Account Details
All the elements necessary to identify a bank account (bank, holder, location, etc.), such as the account number, bank code, sort code, IBAN code, and BIC (Bank Identifier Code). This information makes it easier to make direct debits and bank transfers.
IBAN (International Bank Account Number)
An international standardized number used to identify bank accounts and facilitate transfers. The IBAN contains information such as the country code, bank code, and account number. In France, the IBAN begins with “FR” followed by 25 alphanumeric characters.
Virtual IBAN
An account number generated by a payment institution to facilitate transaction management and transfer reconciliation. A virtual IBAN is linked to a primary account but used to segment and identify specific transactions.
BIC (Bank Identifier Code)
A unique code that identifies a financial institution or bank, both nationally and internationally. Also known as a SWIFT code, the BIC code is used in conjunction with the IBAN to ensure the proper routing of funds transferred by bank transfer.
BIS (Bank Identity Statement)
A document provided by a bank that contains the information necessary to identify a bank account, in order to facilitate transfer or direct debit transactions. The RIB includes the account number, bank code, sort code, IBAN (International Bank Account Number) and BIC (Bank Identifier Code) of the bank.
BIS key
Two-digit control code (between 01 and 97) appearing on a Bank Identity Statement (RIB), used to verify the validity of other information on the RIB (account number, bank code and sort code) and prevent entry errors during banking transactions.
Notice of execution
Notification or document sent by the issuing bank to the acquiring bank, to confirm the successful execution of the transfer, and to inform that the funds should soon be available in the beneficiary’s account.
Transfer notice
Notification or document sent by the acquiring bank to its customer (beneficiary), to inform them that a bank transfer has been received in their bank account. The transfer notice may contain details such as the amount transferred, the execution date, the name of the sender and the reason for the payment.
Transfer confirmation
Notification or document sent by the issuing bank to its customer (payer), in order to confirm the successful execution of the transfer and summarize the main information (amount, type of transfer, bank details of the beneficiary, reference, etc.).
Execution date
Date when the transfer order is processed, recorded and executed by the issuing bank and the funds are transferred between the accounts concerned.
Execution time
The time required for funds to be credited to the beneficiary’s account (between the execution date and the funds availability date). This period may vary depending on the bank and the nature of the transfer.
Value date
Date from which the bank transfer will actually be taken into consideration, in particular for the calculation of debit interest.
Transfer label or reference
A unique code or description associated with a transaction, making it easier to reconcile transfers received for the beneficiary. This could be an invoice reference or the reason for the transfer, for example.
Transfer ceiling
This is the maximum amount a sender can transfer from their account, in a single transaction or over a given period. This limit is set by the bank for security and risk management reasons.
Proof of transfer
Confirmation that a bank transfer has been successfully executed. This proof is generally used to certify that the funds have been transferred, for traceability and dispute resolution purposes.
Availability
The moment funds transferred to the recipient’s account become available. Availability may be immediate or delayed depending on the processing times and policy of the acquiring institution.
Transfer fees
Fees charged by a bank or financial institution to process and execute a bank transfer. These fees vary depending on the type of transfer, the amount transferred, the currency used, the banks involved, etc.
Disputing a transfer
A procedure initiated by the sender of a transfer, in which the sender reports a problem or irregularity regarding a transfer made from their account. Reasons for a dispute may include an unauthorized transaction, an error in the beneficiary’s information, etc. To resolve this dispute, an investigation is usually conducted by the sending bank.
Transfer rejection
Situation in which the issuing bank refuses to execute the transfer order due to insufficient funds, incorrect banking information, suspicion of fraud, etc. The payer is then informed and the transfer order canceled.
1 Banque de France – Key figures from the Observatory for the first half of 2023 (2023)
2 Statista – Total number of bank transfers in France from 2010 to 2022 (2023)
3 Banque de France – Observatory of the security of means of payment (2023)
