Transfers through various methods
Banks and savings banks offer customers various payment methods so they can access the funds they have in their bank account. The main methods are by issuing payment cards and accessing online banking and banking apps on smart devices.
In Iceland, real-time payment processing has been in place for a number of years. Real-time payments mean that payments are received by the recipient as soon as the transfer is made. In many countries abroad, a transfer between two financial institutions took 1-2 days, but now most countries in Europe are implementing real-time payment processing.
How do debit cards work?
When people pay with a debit card, they are spending money they have. The amount of the purchase is then taken directly from the buyer's account, whether they use a plastic debit card or a debit card linked to a phone or watch.
What about credit cards – how do they work?
When people pay with a credit card, they are actually taking out a loan from their bank. The debt is then usually paid off at the turn of the following month. However, the seller usually receives the payment after 1-2 days or later if agreed upon.