Stop ordinary bank transfers in Europe until 7 April due to the pause in the Target2 system: credits of salaries and pensions are at risk. Here’s what to do to avoid inconvenience
From today at 6pm the “Easter holidays” begin for ordinary bank transfers. Until Tuesday 7 April, millions of bank transfers in Europe will remain pending. A pause that could mean delays in salaries, pensions and payments between private individuals and businesses. But this is not a disservice or a technical problem: it is a planned suspension of the European payments system. But there are alternatives.
Because bank transfers stop at Easter
At the base of the stop is Target2, the Eurosystem platform that regulates ordinary transfers between banks. This is where the step takes place that makes the transfer of money from one institution to another effective. From 6pm on Thursday 2 April until the morning of Tuesday 7 April, Target2 will be suspended in line with the European Central Bank’s calendar, which includes the Easter closure from Friday to Monday. A method that has been in place for years, to concentrate operational breaks in periods of lesser activity. What happens to those who make a bank transfer during the “holidays”? The transfers arranged in these days are not cancelled, but placed in a queue to be reprocessed when the system reopens. The problem is simple: without Target2, there is no “final settlement” between banks. The money, therefore, is not lost, but remains temporarily suspended.
Stop bank transfers: the consequences on salaries, pensions and payments
The blocking of bank transfers for Easter has a concrete impact for citizens and businesses, but is temporary. What can happen? Salaries and pensions credited later, delays in payments between companies, postponement of transfers linked to deadlines or invoices. All payments made between 2nd and 6th April will only be visible from 7th April, when the system will be operational again. There may be a boom in trades on Tuesday, but experts assure that the platform is designed to handle high volumes. What about citizens and businesses? Simple: the money arrives, but later than expected.
The alternatives: what also works during the bank transfer stop
However, not everything stops. There are alternatives that allow you to bypass the block. First of all, they always remain active i instant transfersbecause they don’t go through Target2 but through another European platform, Tips. In an emergency they are the best solution. And then they cost the same as ordinary bank transfers, are available 24 hours a day and guarantee credit in just a few seconds. The second alternative are i bank transfers and bank transfers in the same bank. Transfers between accounts of the same institution do not require interbank settlement and are executed without interruptions. Finally, the simplest strategy is padvance planning: arrange payments before the stop and anticipate any deadlines
The Easter stop will not be the last. The pauses will continue to exist as long as the European payment system remains divided between two models: Target2 on the one hand (linked to working days) and instant transfers (always active but still little used). The technology to overcome these stops already exists, but the transition is ongoing and not yet complete.
