Survey to address IBAN discrimination

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The EU has implemented rules to address IBAN discrimination within Member States with the Single Euro Payments Area Regulation (SEPA Regulation).

According to Article 9 of Regulation (EU) No. 260/2012 (SEPA) the following are defined:

  • a payer, who performs a credit transfer to a payee who holds a payment account within the European Union shall not specify in which member state the payment account is to be held, provided that such payment account is reachable in accordance with the rules of a European Union-wide payment scheme.
  • a payee, who accepts a transfer or uses a direct debit to collect funds from a payer, who holds a payment account within the European Union shall not specify in which member state this payment account is to be held, provided that the payment account is reachable in accordance with the rules of a European Union-wide payment scheme.

Although the Regulation has been in force since March 2012, citizens and businesses operating across borders are faced with the rejection of their IBAN because it starts with the letters of their country of origin (for example CY, GR, FR, etc.) or the digit length of the IBAN differs from the domestic one (for example, it has less than 34 alphanumeric characters).

To solve this, they are forced to obtain a new bank account in the host member state. That is not always easy. Especially if the company is not established or the citizen does not reside in the member state from/to which the payment is made. For businesses, this can even lead to the closure of their economic activity.

IBAN discrimination occurs in both the private sector and public services. According to information from the EC, most complaints of IBAN discrimination concern telecommunications providers. However, the consequences of discrimination by public authorities can be more severe because there is often no alternative to public service. Businesses may not be able to pay their taxes, get their VAT money back, apply for promotions, or obtain certificates. While citizens may face difficulties, for example, with tax authorities and receiving pensions or reimbursement of healthcare expenses.

The European Commission’s Single Market Enforcement Task Force (SMET) is exploring this issue with a view to taking action to eliminate discrimination.

That is why, to support the efforts of the Task Force, we would like you to inform us whether you have faced similar treatment. That is, if you tried to make credit transfers within the Single Euro Payments Area (SEPA) or direct debits within SEPA to pay bills, purchase products or services online, pay taxes or collect tax refunds, unemployment benefits, or other benefits, and your account was rejected because it is located in an EU country other than the country of the other party. Please note that the information collected will be given anonymously to the Task Force.

The survey will be open until August 16, 2023, and you can participate by completing the form found HERE.