What is IBAN discrimination?
IBAN discrimination occurs when a company or institution within the Single Euro Payments Area (SEPA) does not accept an IBAN issued by a payment service provider based in another SEPA member country. This often happens when the company requires an IBAN starting with the domestic country code of a specific state or in a domestic format. This practice is prohibited by Article 9 of the SEPA Regulation (Regulation (EU) No 260/2012), which mandates equal treatment of all IBANs within the SEPA scheme, ensuring that they are reachable and usable.
How can you deal with IBAN discrimination?
If you encounter IBAN discrimination, you should follow these steps:
1. Inform the Company: Notify the company or institution that they are violating Article 9 of the SEPA Regulation by refusing your IBAN.
2. Send a Formal Complaint: If there is no response, escalate the matter by sending a formal written complaint to the company.
3. Contact Regulatory Authorities: If the issue persists, report the non-compliance to the relevant regulatory body or competent authority in your country.
4. Notify myPOS: Inform myPOS about the incident by emailing help@mypos.com.
To assist you, we have prepared template letters for formal complaints to both the company and the relevant authorities.
Template: Formal Complaint to a Company
Dear Sir/Madam,
My myPOS Euro-denominated IBAN [insert your IBAN number] is a valid account that supports SEPA payments.
On [insert date], I attempted to [make/receive] a transaction in the abovementioned account, but was refused on the grounds that [insert reason you were given].
Please note that IBAN discrimination is a violation of Article 9 of the SEPA Regulation and refusal to comply will be reported.
I trust you will be guided accordingly and authorise my details in your systems to allow direct debits and credit transfers to my account.
Yours sincerely,
[Your name]
Template: Formal Complaint to the Relevant Authority
Dear Sir/Madam,
Despite my formal written complaint to [company name] on [date], which you will find attached hereto, the company continues to refuse transactions to my Euro-denominated IBAN.
As explained in my formal complaint to [company], on [insert date] I attempted a transaction in the aforementioned IBAN, but was refused on the grounds that [insert the reason the company provided].
In terms of Article 9 of the SEPA Regulation, such refusal constitutes IBAN discrimination and I would be grateful if you would act accordingly and proceed in assisting me to get redress regarding this matter.
Yours sincerely,
[Your name]
There is no reason you should be prevented from making or receiving payments within the SEPA area using your IBAN, provided it is in euro. Any such practice is considered IBAN discrimination and is against the law. If you experience such issues, follow the steps outlined above to seek a resolution.
It's important to know your rights and the actions you can take to avoid facing this type of discrimination now or in the future.
If you need further assistance, inform myPOS about the matter by emailing us at help@mypos.com.