Increased European paying convenience with IBAN and Invantive

What is IBAN?

In parts of the European Union we can already make do with a single currency for roughly a decade. Thanks to the European politic it was agreed upon in 2001 that the rates of transboundary payments through the bank should cost as much as domestic payments. That was painful for the banks because the payments at the time were completed much more efficient domestically compared to internationally. That is why in recent years banks have found a solution which would eliminate the difference in costs between domestic and international payments.

This approach is called “Single Euro Payments Area” or “SEPA”. Part of SEPA is that you can use European transfers. A European transfer is a transfer of euros between two parties based on so-called “IBAN” codes for the account number en “BIC” codes for the bank. An IBAN code (in full: “International Bank Account Number”) always begins with the land code and also always includes the bank account number as you know it. A BIC code indicates to which bank the account number is known and used to be known as “SWIFT” code. The IBAN code of Invantive B.V. is for example “NL 42RABO 01 234097 80” and the BIC code of the Rabobank is “RABONL2U”.

When will IBAN arrive?

At this moment you can already use an IBAN code of the recipient in your transfers with many banks. However, you can also still use the bank account numbers you are familiar with. From February 1st of 2014 and onwards you will only be able to use IBAN codes. On the site Answers for companies of the central government you can find more information.

IBAN and Invantive

If you use the products Invantive Estate or Invantive Vision, then the introduction of SEPA could affect your use of the software. All version since 2009 support the registration of an IBAN code in the screen “Persons” and the screen “Organisations”. Starting with version 2012 R2 you cal also register a BIC code and other bank data.

In consultation with your relations you will need to convert the bank account numbers in IBAN codes and BIC codes. This can of course be done by requestion all relations to send their new data. Or you make use of one of the automated conversions like I recommend to start early with this; you can already use the transfers in the new format after all and it prevents stress close to the 1st of January of 2014.