nightmare
Companies in Europe face a potentially daunting challenge if they
are to participate in the Single Euro Payments Area direct debit
and credit transfer schemes, warns payments software vendor Eiger
Systems.
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In order to meet the 2010 SEPA deadline, explained Eiger Systems,
all domestic account details must be converted into the bank
identifier code (BIC) and international bank account number (IBAN)
format, a process that will require contacting what could amount to
millions of customers.
Organisations that are most seriously affected by the conversion
are large business-to-customer companies that have extensive
customer and supplier bases. The problem is compounded by the fact
that banks are not allowed to provide a conversion service for
accounts they do not hold.
Eiger Systems’ communications and product strategy director,
Jonathan Williams, said he believes there are only two solutions
available.
“Either companies assign internal resource to contact each customer
to obtain their BIC and IBAN details, which could potentially run
into millions of individuals, making the task virtually impossible,
or they need to source a vendor solution, which will perform a
conversion to BIC and IBAN and ensure the details are verified as
part of the process,” he explained.
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By GlobalDataWilliams added that Eiger Systems’ Bank Wizard product provides a
solution. The product performs the conversion from domestic account
details to BIC and IBAN and validates data on an ongoing
basis.
The validation feature is particularly important, said Williams, as
errors in payment details can cost up to €75 ($109) each to
rectify.
