20 September 2017
visit www.avoka.com

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

04 October 2012  |  7763 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to simplify and streamline processing operations for domestic and international payments but it will also expose out-of-date account data and other errors that were previously overcome through a patchwork of locally implemented fixes, warns the vendor.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  |  6209 views  |  0 comments
Banks see corporates as key to Sepa success

Banks see corporates as key to Sepa success

14 May 2012  |  7613 views  |  0 comments
MEPs vote for 2014 Sepa deadline

MEPs vote for 2014 Sepa deadline

14 February 2012  |  10799 views  |  2 comments
Banks sceptical about meeting 2014 Sepa compliance deadline

Banks sceptical about meeting 2014 Sepa compliance deadline

19 September 2011  |  9707 views  |  1 comments
VocaLink ditches Sepa services

VocaLink ditches Sepa services

22 August 2011  |  18689 views  |  4 comments
Swift launches corporate Iban validation kit

Swift launches corporate Iban validation kit

08 July 2011  |  8387 views  |  1 comments
Sepa still looms large for UK corporates - survey

Sepa still looms large for UK corporates - survey

10 August 2009  |  7041 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comvisit www.vasco.comdownload the paper now

Top topics

Most viewed Most shared
JPMorgan Chase chief says he would fire traders dealing in bitcoin for stupidityJPMorgan Chase chief says he would fire tr...
10553 views comments | 16 tweets | 29 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10146 views comments | 6 tweets | 17 linkedin
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
9707 views comments | 21 tweets | 39 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9042 views comments | 6 tweets | 3 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
7500 views comments | 5 tweets | 4 linkedin

Featured job

Find your next job