IBAN/BIC Validation Before Payment Submission

Business Value

Incorrect banking details (IBAN, BIC) or invalid characters in payment references lead to rejected payments, additional bank fees, and time-consuming corrections. Companies processing dozens or hundreds of payments daily require reliable validation before submission to the bank.

With IBAN/BIC Validation in 365 business Banking, erroneous payment data is automatically detected before transmission to the bank. This prevents payment errors, reduces manual rework, and saves bank fees for failed transactions.

Feature Description

365 business Banking automatically validates banking details for every payment transaction according to international ISO standards:

• IBAN Validation according to ISO 13616: Checks country-specific length (86 countries supported) and calculates checksum using the Mod-97 algorithm
• BIC Validation according to ISO 9362: Validates format (8 or 11 characters), structure, and country codes
• SEPA Character Set Validation: Detects and replaces invalid characters (e.g., umlauts) in recipient names and payment references

Validation is performed automatically in the following scenarios:

Payment Journal

During payment preparation in the Payment Journal, IBAN, BIC, and text fields (name, reference) are validated before submission to finAPI. Invalid data is immediately rejected with a clear error message.

SEPA Payment Import

When importing SEPA files via SEPA Payment Import, the imported banking details are also validated before processing. Invalid IBANs or BICs in the import are detected before payments are created in Business Central.

Benefits at a Glance

• Error-Free Payments: No rejected transactions due to incorrect IBANs or BICs
• Cost Savings: Avoidance of bank fees for failed transfers
• Time Savings: No manual rework for failed payments
• Compliance: Adherence to international ISO standards (ISO 13616, ISO 9362)
• User-Friendliness: Immediate, clear error messages instead of cryptic bank rejections