The promise of SEPA (Single Euro Payments Area) was simple: to make cross-border payments as seamless as domestic transfers. In theory, an IBAN (International Bank Account Number) issued in any SEPA country should be accepted across the entire zone without restrictions. Yet, despite being illegal for more than a decade, IBAN discrimination remains a widespread issue that impacts both consumers and businesses.
What Is IBAN Discrimination?
IBAN discrimination occurs when a company, institution, or service provider refuses to accept an IBAN simply because it is issued in another SEPA country. This refusal violates Article 9 of the SEPA Regulation (EU 260/2012), which explicitly prohibits such practices.
For example, a customer in France using a German IBAN from a neobank may be blocked from paying bills or subscriptions, even though the law requires full acceptance.
Why Does It Persist?
Several reasons explain why IBAN discrimination continues:
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Legacy banking systems not adapted to non-domestic IBANs.
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Fraud and compliance fears, with institutions wrongly associating foreign IBANs with higher risk.
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Lack of enforcement, as fines or penalties are rarely applied.
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Low consumer awareness, meaning many affected customers do not report the issue.
Impact on Consumers and Businesses
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Consumers: struggle to pay utility bills, receive salaries, or set up direct debits when providers refuse their foreign IBAN.
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Businesses: miss out on clients, damage their reputation, and face unnecessary compliance risks.
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Fintechs: neobanks and EMIs suffer when customers cannot fully use their services due to IBAN rejection.
Notable Cases
In France, Crédit Agricole has often been cited in complaints where consumers holding foreign SEPA IBANs face difficulties paying or receiving funds. Similar issues are reported with telecom providers, insurance companies, and subscription services across Europe.
Initiatives Against IBAN Discrimination
To fight these outdated practices, several initiatives have been launched:
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#AcceptMyIBAN: spearheaded by Wise, Revolut, N26, Klarna, and others, to raise awareness and pressure regulators.
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Consumer complaints to regulators: national competent authorities are responsible for enforcing SEPA compliance.
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Industry pressure: fintech associations and user groups increasingly call for stronger fines and stricter monitoring.
The Way Forward
IBAN discrimination undermines the credibility of SEPA and creates unnecessary barriers to the digital economy. Stronger regulatory enforcement, combined with technical modernization of legacy systems, is needed to ensure Europe lives up to its vision of a unified payments area.
For consumers and businesses alike, the message must be clear: an IBAN is an IBAN, no matter where it was issued within SEPA.