Advent of SEPA Will Expose Data Glitches (Finextra)

Failed payments resulting from data problems could cost European businesses billions of euros, Experian study shows.

When the Single Euro Payments Area system goes into effect in February 2014, it could expose errors like out-of-date account data in the records of many European countries, costing them up to 20 billion euros ($25.8 billion) in fees, according to a study by  Experian, an information services company, Finextra reports.

Experian looked at more than half a million bank account records from European businesses and found that 12% of current electronic payments denominated in euros contain data errors that could interfere with the transfer of funds under SEPA.

Experian says that only 65% of transactions included fully accurate information about the destination account, and 45% of the international bank account numbers (IBANs) European companies have stored lack a valid bank identifier code (BIC), which is needed to complete transactions.

Such data problems could lead to failed payments, at a cost of about 50 euros ($65) a pop, for a total bill of more than 20 billion euros a year, according to Experian.

 

See the full story here and Experian’s press release here.

For previous coverage of this issue, see SEPA Deadlines Mean IT Challenges and SEPA’s Tight Deadline.


 

Comments