IBAN/BIC Validation Before Payment Submission

365 business Banking checks IBAN, BIC and the SEPA character set before a payment is transmitted to the bank. Faulty payments are detected before they are sent.

Business Value

A wrong IBAN, a wrong BIC or a character not allowed in the payment reference is otherwise only detected when the bank rejects the payment. This causes rework and often happens days later. The check in Business Central reports the error before the payment reaches the bank and names the affected field.

Feature Description

When you choose Carry Out Payment in the Payment Journal, 365 business Banking checks every line in the same way for every bank connection:

• IBAN according to ISO 13616: characters, country-specific length and modulo 97 check digits. For an international credit transfer, the account number is enough instead of the IBAN.
• BIC according to ISO 9362, if given: 8 or 11 characters, structure and country code. For an international credit transfer, the BIC is required.
• SEPA character set in the recipient name and Message to Recipient: umlauts are replaced; other characters that are not allowed and texts that are too long stop the payment with a message.

In SEPA Payment Import, an invalid IBAN or BIC is an error for every banking provider. Texts outside the SEPA character set or that are too long produce a warning there and are adjusted when the payment is carried out.

If a payment over EUR 12,500 goes to a non-resident, Carry Out Payment points out the reporting obligation under § 67 AWV. You file the report yourself.

Details: What is checked before the payment