by croatiaweek
October 5, 2025
in
Illustration
From 9 October 2025, all banks in Croatia will be required to offer instant payments and a new recipient name verification service, following the implementation of the EU Regulation (EU) 2024/886 on instant payments.
The new system will allow money transfers between bank accounts within 10 seconds, at any time — 24 hours a day, 7 days a week, 365 days a year.
Instant payments, known as SEPA Instant Credit Transfers, will cover both domestic and cross-border transactions in euros.
Currently, standard transfers in Croatia are commonly used for everyday payments such as utilities, electricity, and phone bills, processed via internet or mobile banking, or in person at a bank, Fina, or Hrvatska pošta, Croatian National Bank confirmed.
The instant payment system will make this process significantly faster and more efficient.
Enhanced Security Through Recipient Verification
Alongside instant payments, banks will also be obliged to provide a recipient name verification service for all credit transfers — both instant and standard.
This new feature allows the person making a payment to check whether the name of the recipient matches the account (IBAN) to which the payment is being sent.
If the recipient is a private individual, the system checks their first and last name; for businesses, it checks the company name.
The aim is to reduce fraud, increase payment security, and boost trust in online and cross-border transactions within the EU’s single market.
How the Verification Works
When a payer enters an IBAN and recipient name, their bank will automatically contact the recipient’s bank to confirm the details. The payer’s bank will then return one of three messages:
1. Name matches – The recipient name corresponds exactly with the account.
2. Name almost matches – The name is similar, and the payer is shown the correct name held by the recipient’s bank.
3. Name does not match – The name entered does not correspond to the IBAN. The bank will warn that the transfer could go to an unintended recipient.
In all cases, the payer must still authorise the transaction to complete it. The bank will not be liable if the funds are sent to an incorrect account after authorisation.
The verification service will be free of charge and performed automatically before a payment is confirmed.
Implementation Timeline
• 9 October 2025 – Mandatory introduction of instant payments and name verification in eurozone countries (including Croatia).
• 9 July 2027 – Implementation in other EU member states whose official currency is not the euro.
Existing Domestic Features
Many Croatian banks already allow automatic completion of recipient details for domestic transfers to registered businesses, government bodies, and public institutions using data from the Single Account Register (Jedinstveni registar računa – JRR).
The new system will expand this functionality to include all EU and EEA accounts, including payments to individuals and foreign entities.