Payments delayed by May Day after introduction of European payment area

Changes arising from the introduction of the Single European Payment Area (Sepa) meant people expecting wages and other payments to be lodged into their accounts yesterday were left waiting because it was a public holiday in many countries across the euro zone.

The Irish Payment Service Organisation (IPSO) which has played a key role in the introduction of Sepa in the Republic claimed that the delays in money hitting people’s accounts was “not a problem” and something that people would have to learn to live with.

Direct debits
The delays in wages and other credit transfers being lodged into Irish bank accounts and direct debits being paid arose because yesterday was a bank holiday in all but four countries in the euro zone.

It is also a bank holiday for institutions of the European Union including the European Central Bank, which operates a banking settlement system across Europe.

As a result there was no clearing and settlement mechanism available to banks to exchange interbank transactions yesterday and all payments that were due to hit accounts yesterday will not be processed until today.

There is also likely to be delays in posting transactions today as banks will not receive their payments until around 10am, when on a normal day these are received by midnight and in accounts from 7am.