Confusion Due to New Rules for Bank Transfers

The new rules for bank transfers, which have been in effect for a good two weeks, are causing "uncertainty and confusion" among bank customers. This is what Gabriele Zgubic, head of the Consumer Protection Department at the Chamber of Labour Vienna, said on Friday in the Ö1 "Morgenjournal". However, the new regulations are fundamentally to be welcomed. She also sees the banks as having a duty - they must "provide more clarification, more information".

New Rules for Bank Transfers

The new rules stipulate that banks must check whether the recipient's name and IBAN match for every transfer. If this is not the case, the customer will be warned accordingly. Zgubic advises consumers to check all data in the event of a warning and, if necessary, to call the recipient. Companies, such as craft businesses, should check whether their name on the invoice matches the name stored with the bank.

Midweek, aid organizations also expressed concern that the new rules could affect charitable organizations "in the crucial donation months before Christmas". Problems arise especially for organizations with long names, with umlauts in the name, or where the organization's name is represented in another language, explained Ruth Williams from the Fundraising Association Austria in the Ö1 "Morgenjournal".

Bank Spokesperson Sees Only "Minimal Initial Difficulties"

The situation is assessed as less dramatic by the banks themselves. Franz Rudorfer, managing director of the Banking and Insurance Division in the Chamber of Commerce, speaks on Ö1 of "minimal initial difficulties". Work is "continuously being done and readjusted".

Similarly, the Financial Market Authority (FMA) expressed in a statement to the APA. They observe "no significant difficulties". So far, no complaints have been received by the FMA, which the supervisory authority interprets as "any problems between the bank and customers could be resolved amicably".

Since October 9, banks must mandatorily offer real-time transfers within the Eurozone. To prevent incorrect transfers and fraud, there are also new security measures: The banks check before completing the transfer whether the IBAN and the recipient's name match. A traffic light system applies: If the two parameters match, the bank gives the green light for the transfer. If there are slight deviations (yellow), such as a typo in the recipient's name, the system suggests the correct name. In the case of major discrepancies between the IBAN and the name, the transfer is flagged (red). In any case, the customer can override a warning and still transfer. However, they then assume liability in the event of an incorrect transfer.

(APA/Red)

This article has been automatically translated, read the original article here.