29 July 2016
Find out more

Sepa-related payment data errors to cost European firms billions - Experian

04 October 2012  |  7368 views  |  0 Sepa

As Europe nears the Sepa migration deadline, the continent's businesses risk losing billions of euros thanks to simple payment errors, according to a report from Experian.

Sepa may be designed to simplify and streamline processing operations for domestic and international payments but it will also expose out-of-date account data and other errors that were previously overcome through a patchwork of locally implemented fixes, warns the vendor.

It has analysed more than half a million bank account records held by businesses around Europe, and claims that 12% of electronic payments made to and from firms in euros currently contain data errors that could critically block the timely and cost-effective transfer of funds when new Sepa legislation comes into effect in February 2014.

Only 65% of euro transactions are underpinned by fully accurate destination account data, while 45% of new Sepa-compliant Ibans stored by large European businesses do not have the valid corresponding BICs required to enable successful completion of transactions.

Experian argues that these error types will lead to payment failure when made through Sepa, costing businesses approximately EUR50 a time, leaving a total bill of more than EUR20 billion a year.

Jonathan Williams, director, payment strategy, Experian, says: "While Sepa will undoubtedly benefit organisations trading in euros, errors in bank account details held by European businesses risk causing significant teething problems as locally implemented fixes - which have largely worked so far - are made redundant by the new common payments system."
KeywordsSEPA

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Irish bank community selects Sentenial to run Sepa conversion service

Irish bank community selects Sentenial to run Sepa conversion service

27 September 2012  |  5816 views  |  0 comments
Banks see corporates as key to Sepa success

Banks see corporates as key to Sepa success

14 May 2012  |  7174 views  |  0 comments
MEPs vote for 2014 Sepa deadline

MEPs vote for 2014 Sepa deadline

14 February 2012  |  10282 views  |  2 comments
Banks sceptical about meeting 2014 Sepa compliance deadline

Banks sceptical about meeting 2014 Sepa compliance deadline

19 September 2011  |  9191 views  |  1 comments
VocaLink ditches Sepa services

VocaLink ditches Sepa services

22 August 2011  |  16015 views  |  4 comments
Swift launches corporate Iban validation kit

Swift launches corporate Iban validation kit

08 July 2011  |  7983 views  |  1 comments
Sepa still looms large for UK corporates - survey

Sepa still looms large for UK corporates - survey

10 August 2009  |  6697 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit www.abe-eba.euFind out more

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9626 views comments | 10 tweets | 4 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6871 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6071 views 0 | 6 tweets | 8 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
5991 views comments | 13 tweets | 14 linkedin
Finextra paper explores blockchain as an enabler of operational resilienceFinextra paper explores blockchain as an e...
5462 views comments | 12 tweets | 9 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job