IBAN discrimination

One Europe. A dream that has yet to come true in all areas. Especially with banking, many companies still do not abide by all regulations that apply. The one ignored the most is article 9 of the

REGULATION (EU) No 260/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009

Article 9 says, that no matter in which EU country your bank account is, someone doing business with you (sending or direct debiting money) has to accept a bank account in any EU country, as long as it is reachable. SEPA, the Single Euro Payments Area took care about this by introducing international bank account numbers (IBAN). If you have an IBAN, you can reach all other IBANs.

So, for example, requiring you to provide a German IBAN (starting with DE) is not allowed for a company. They also have to accept GB, CH, AT—you get the drill.

The full Article 9: Payment accessibility

  1. A payer making a credit transfer to a payee holding a payment account located within the Union shall not specify the Member State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article 3.
  2. A payee accepting a credit transfer or using a direct debit to collect funds from a payer holding a payment account located within the Union shall not specify the Member State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article 3.

Please contact me if you came across business that requires a country specific IBAN rather than accepting all IBANs.

 

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