Banking Transfers Suspended for Four Days Over Christmas: What You Need to Know

Four-Day Suspension of Banking Transfers Over Christmas 2025

Around Christmas 2025, traditional interbank transfers across the European Single Euro Payments Area (SEPA) will be suspended for four days, from the afternoon of December 24th until December 29th. This yearly pause is caused by the temporary closure of TARGET2, the European Central Bank’s platform that processes euro transfers between banks. Because the suspension overlaps with the Christmas holidays and the weekend, no classic SEPA bank transfers will be processed during this period.

What Is TARGET2 and Why Does It Close?

TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer system) is the backbone payment system for instant settlement of large-value euro transactions between banks in Europe. Over 1,000 banks rely on it daily to send and receive payments in euros. However, TARGET2 closes during certain European holidays, including Christmas, New Year’s Day, and other statutory public holidays. In 2025, this results in an extended closure because Christmas Eve afternoon shutdown leads into Christmas Day, Boxing Day, the weekend, and resumes on Monday 29th December.

Which Payments Are Affected?

Classic SEPA transfers (non-instant): These transfers between different banks using TARGET2 will be on hold if initiated after the afternoon of December 24th, only appearing in recipients’ accounts from December 29th onward.
Scheduled payments like rent or automatic withdrawals: These will also be delayed if they rely on classic interbank transfer processing.

Payments That Continue Normally

Instant bank transfers: Operated via the TIPS system, instant transfers are processed 24/7 and will continue to function throughout the holiday period. Since January 2025, all banks in France offer this service free of charge.
Transfers within the same bank: These internal transfers do not go through TARGET2 and are processed normally.
Payments by card or ATM withdrawals: Daily card transactions and cash withdrawals are not impacted.

How to Prepare for the Holiday Banking Freeze

To avoid delays or potential overdrafts caused by the banking pause, experts recommend:

Initiating any important transfers well before December 24th midday.
Using instant transfers if available for last-minute payments.
Checking direct debits scheduled during the closure to ensure sufficient funds in your account.