A cut-off time is the latest time in a business day at which a bank or payment system accepts a payment order for processing that day. Orders received later are treated as received on the next business day, as PSD2 allows. Cut-off times vary by currency, system and channel, for example 17:00 for customer payments in T2.
Value dateThe value date is the reference date a bank uses to calculate interest on funds debited from or credited to an account. Under PSD2, the payee's credit value date may be no later than the business day on which the funds reach the payee's bank, and the payer's debit value date no earlier than the moment the account is debited.
T2 (TARGET RTGS and central liquidity management)T2 is the Eurosystem's real-time gross settlement system for euro, which replaced TARGET2 in March 2023. It combines Central Liquidity Management, where banks hold their main central bank accounts, with an RTGS service where high-value payments settle one by one in central bank money. It is part of the TARGET Services with T2S and TIPS.
SEPA Credit Transfer (SCT)SEPA Credit Transfer (SCT) is the European Payments Council scheme for euro credit transfers between accounts in the Single Euro Payments Area, identified by IBAN. Funds must reach the payee's bank by the next business day at the latest, with no scheme maximum amount, and cross-border transfers follow the same rules as domestic ones.
PSD2 (Second Payment Services Directive)The second Payment Services Directive, Directive (EU) 2015/2366 (PSD2), is the EU law on payment services and their providers, applicable since January 2018. It sets authorisation, transparency, execution time and liability rules, created regulated payment initiation and account information services, and required strong customer authentication. PSD3 and the PSR will replace it.
T2 (TARGET RTGS and central liquidity management)T2 is the Eurosystem's real-time gross settlement system for euro, which replaced TARGET2 in March 2023. It combines Central Liquidity Management, where banks hold their main central bank accounts, with an RTGS service where high-value payments settle one by one in central bank money. It is part of the TARGET Services with T2S and TIPS.