How bank transfers work in Spain: IBAN, SEPA and instant payments

Key rules

• Paying you: Senders need your name and 24-character IBAN; no BIC/SWIFT code is needed within SEPA.
• Instant transfers: They arrive within 10 seconds at any time and cannot cost more than a standard transfer.
• Cut-off: Orders after your bank's cut-off or on non-business days are processed the next business day.
• Name check: If the bank warns that the name does not match the IBAN, cancel or correct before sending.
• Limits: Daily app limits vary by bank, and you can usually change them in the security settings.

What you need to get paid

Give the sender your name as account holder and your IBAN. That is all they need for a euro payment inside SEPA, the euro payments area. A BIC/SWIFT code is only needed if the sender is outside SEPA and their bank asks for it.

A Spanish IBAN has 24 characters. It starts with ES, then two check digits, then your 20-digit account number. Banks often show it in groups of four, for example ES00 0000 0000 0000 0000 0000. Before you send, check that the IBAN you are paying to has 24 characters and starts with ES.

Standard and instant transfers

A standard SEPA transfer must reach the recipient's bank by the end of the next business day after your bank receives the order. Your bank has a daily cut-off, often mid-afternoon. An order placed after it counts as received the next business day. Branch orders often have earlier cut-offs, so check your bank's terms.

Weekends and bank holidays do not count as business days. A Friday evening transfer therefore usually arrives on Monday or Tuesday.

An instant transfer avoids the wait. The money arrives within 10 seconds, any day and any hour. Banks in the euro area must now receive instant transfers and offer them for sending. Many Spanish banks already send transfers instantly by default. Use instant when timing matters, such as a deposit due today.

What it costs

Many Spanish banks, especially digital ones, charge nothing for domestic transfers ordered in online banking. Others charge a small fee, usually for transfers ordered at a branch or urgent ones. An instant transfer cannot cost more than a standard one. Each side pays its own bank. A conversion fee can apply if another currency is involved. Look at your bank's fee schedule before you start.

The name check before you send

Before you confirm a euro transfer, your bank compares the payee's name with the IBAN. It shows one of three results:

• Match: the name fits the IBAN. Go ahead.
• Close match: the bank shows you the name it has on file. Compare it with who you mean to pay.
• No match: you get a warning. Cancel or correct the details.

Sometimes the check cannot be done. If you send anyway after a warning, the bank is not liable for the mismatch. The check applies to standard and instant transfers alike. If money has already gone to the wrong account, see the "wrong IBAN" section below.

Daily limits

Banking apps set a daily limit on transfers. It is usually a few thousand euros per day or per operation. It is often lower for new customers or new devices, and higher on the web or in a branch. Bizum, the mobile payment service, has its own lower limits.

Check your limit before a large transfer. You can usually change it in the security settings of the app or online banking. You can also ask your branch, the phone line or the chat. You may need extra authentication. Confirm your current limits with your own bank.

The timeline, checklist and questions below cover the same steps in short form.

Timeline and deadlines

• Send the transfer before your bank's daily cut-off, often mid-afternoon (roughly 14:00 to 16:00), for same-day processing: on a business day, before the cut-off

• A transfer ordered after the cut-off is treated as received the next business day: if you order after the cut-off

• A transfer ordered at a weekend or on a bank holiday is processed on the next business day: if you order at a weekend or on a bank holiday

• Use an instant transfer if your bank offers it, so the money arrives within 10 seconds, any day: any time, 24/7

Checklist

• Give the account holder's name and the 24-character IBAN, starting with ES, to anyone who needs to pay you.

• Leave out the BIC/SWIFT code for euro payments within SEPA, unless a sender outside SEPA asks for it.

• Read the payee check result before you confirm: a match, a close match or no match.

• Cancel or correct the details if the bank warns that the name does not match the IBAN.

• Send before your bank's cut-off on a business day if you want the transfer processed that day.

• Choose an instant transfer when the money must arrive within 10 seconds, at any time.

• Check your daily limit in the app before a large transfer and raise it in the security settings if needed.

• Look up your bank's fee for the transfer type before you send, especially for branch-ordered or urgent transfers.

What if I sent a transfer to the wrong IBAN?

Call your bank the moment you notice the mistake. The bank can ask for the money back, but you only get it if the recipient agrees to return it, and the earlier you ask, the better your chances.

What to do right away

Contact your bank by phone, at a branch or through secure messaging. Ask for a recall of the transfer. You may hear it called a "retrocesión" or a "devolución".

Ask within 10 banking days. After that, the recipient's bank can still pass on your request, but getting the money back depends on the recipient's goodwill or on legal action.

Have these details ready:

• the date and amount of the transfer
• the IBAN you used
• the beneficiary's name and the reference
• the IBAN you meant to use, if you have it

Keep copies of everything you send and receive. Your bank may charge a fee for the recall, so ask about it when you call.

What happens next

Your bank sends the recall request to the recipient's bank. That bank asks the account holder whether they agree to return the money. It cannot take the money out of the account without their consent. If they agree, the money comes back as a credit to your account.

If the recipient refuses

Your bank must make reasonable efforts to recover the money. Ask it in writing for the information you need to bring a legal claim, such as who the recipient is, where the law allows it. Then you can:

• Demand the money back in writing. A burofax is the usual way, because it proves what you sent and when.
• Sue in the civil courts for the return of money paid by mistake.
• File a complaint with the police, or through a lawyer. Keeping money you received by mistake can be a criminal offence.
• Complain to your bank's customer service. If that does not solve it, take the complaint to the Banco de España.

For a large amount, talk to a lawyer before choosing a route, so you know the costs.

If you notice late

You can still report the error after the first 10 banking days. Tell your bank as soon as you notice, and no later than 13 months after the money left your account. The bank is not bound to get the money back, though.

Avoiding it next time

Before you confirm a euro transfer, your bank checks the name you entered against the IBAN. If the name does not match, you get a warning and can cancel or correct the details. If you go ahead after a warning, the bank is not liable for the mismatch. So stop and check the IBAN whenever you see one.

Frequently asked questions

Why did my Friday evening transfer arrive on Monday or Tuesday?

A Friday evening transfer usually arrives on Monday or Tuesday because orders made on a weekend or bank holiday are processed on the next business day.

What happens if the name does not match the IBAN when I send money?

Your bank warns you before the money leaves if the name does not match the IBAN, and you can cancel or correct the details. The check can show a match, a close match with the name the bank has on file, or no match.

Can I raise my daily transfer limit in the banking app?

Yes, you can usually change your daily transfer limit yourself in the app or online banking security settings, sometimes with extra authentication. You can also ask your branch, the phone line or the chat. Limits are often lower for new customers or new devices, and Bizum has its own lower limits.

Do I pay more to send an instant transfer than a standard one?

No, your bank cannot charge you more for sending an instant transfer than for a standard SEPA transfer. Many Spanish banks make domestic transfers free in online banking, while others charge a small fee, usually for branch-ordered or urgent transfers.