§ 4-11. How long a payment can take between banks
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- The deadline for getting the money to the payee's bank ranges from the same business day (virkedag) to four business days, depending on the type of payment.
- A paper-based order gives one extra business day, and a payment outside the EEA (EØS) has seven business days unless otherwise agreed.
- The deadlines run from when the order is considered received under § 4-5.
The text of the law (unofficial translation)
§ 4-11. Execution time for the payment service provider
- the same business day, for a domestic payment transaction (betalingstransaksjon) in Norwegian kroner
- the first following business day, for a payment transaction in euro carried out within the EEA without currency conversion
- the first following business day, for a cross-border payment transaction in euro carried out within the EEA, when no more than one currency conversion from Norwegian kroner to euro has been made in Norway
- the fourth following business day, for other payment transactions to a payee in the EEA.
What does this mean?
This section sets deadlines for how quickly the payer's service provider (tjenesteyter) must get the money to the payee's service provider, counted from when the payment order is received. The deadlines range from the same business day to four business days, depending on whether the payment is domestic, in euro or goes to other countries in the EEA. The first paragraph has exceptions in the second to fourth paragraphs.
The second paragraph gives one extra business day when the payment is initiated with a paper-based payment instrument. The third paragraph applies to cross-border payments to payees outside the EEA. Here the payer's service provider must transfer the amount no later than by the end of the seventh business day after receipt, unless otherwise agreed. The fourth paragraph applies to payments initiated by or through the payee. In that case, the payee's service provider must forward the order to the payer's service provider within the agreed deadline. For direct debit, this must happen so that settlement can be made on the agreed due date.
The deadlines are counted from the time the order is considered received, which is determined by § 4-5. On business days, the order is received when it is delivered to or registered with the payer's service provider. If it is delivered on a day that is not a business day, it is considered received on the first business day after. The bank can set a cut-off time near the end of the business day, and orders that arrive after it are considered received the next business day. If it has been agreed that the order is to be carried out on a specific day, it is considered received on that day if it is a business day.
§ 4-12 sets the date from which interest is calculated when the account is credited and debited. § 4-15 gives the payer the right, on request, to be told how long a payment can take. § 4-7 on cancellation and § 4-10 on reservation of amounts are other links in the same chain around the payment order.
Example: The payer's service provider receives an order for a domestic payment in kroner. The amount must then be credited to the payee's service provider the same business day. If the order was delivered on a day that is not a business day, receipt only counts from the first business day after.
- § 4-5When is a payment order considered received by the bank?
- § 4-12Interest calculation and when the money must be available in the account
- § 4-15Information about fees and time before and after a payment
- § 4-7Stopping a payment: deadlines for cancelling payment orders
- § 4-10Reservation of money in the account for card payments