You arrive in Ireland and you have a handful of essential tasks to get out of the way, including setting up any direct debits with local providers. But you notice that your chosen company doesn’t accept your current IBAN, they only accept Irish IBANs – this is what’s referred to as IBAN discrimination.
Although prohibited under European law, there still are a number of businesses and companies across Ireland that refuse to accept non-Irish IBANs within the SEPA zone. Below we have covered everything you should know about IBAN discrimination in Ireland including how to avoid IBAN discrimination and how to get an Irish IBAN.
What is IBAN discrimination?
IBAN discrimination is when an employer or a company refuses to accept your SEPA IBAN for payments in euro for direct debits, standing orders, or payments. It’s important to know that this is prohibited under European law and just recently, the Central Bank of Ireland called on businesses not to discriminate against those with a non-Irish IBAN.
What is the SEPA zone?
The Single Euro Payments Area (better known as SEPA) was an initiative established to make credit transfers and direct debits in euro safe, fast and efficient across countries in the European Union.
There are 36 countries in the SEPA zone, including the 28 EU member states as well as the four members of the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland).
What countries don’t use IBANs?
IBAN numbers are used across the SEPA zone as well as an estimated 70+ other countries worldwide. The United States, Canada, Australia, and New Zealand are just some of the few countries that don’t use IBANs.
What does my IBAN look like?
Your IBAN consists of up to 34 letters and numbers with the first two letters indicating the country code (eg. IE for Ireland). The following two digits are check digits and the remaining numbers are country-specific basic bank account numbers (BBAN). Your IBAN is completely unique to you and your account.
You can typically find your IBAN on any recent bank statements or on your bank’s app. To find your Money Jar account IBAN, open your Money Jar app, and in the main menu under account details you will find your IBAN as well as other important account details.
What do I need my IBAN for?
You need your IBAN to make and receive euro payments across SEPA countries. For example, when you move and settle down in Ireland, you will use your IBAN to receive payment from your new employer, set up utility bills, and any other direct payments – you might even use it to send money to friends and family within the SEPA zone.
Why does it say my IBAN is invalid?
If you are entering your IBAN and it is not being accepted, firstly double (and triple) check that you have correctly entered the digits. If you continue to have issues and you are using an EU IBAN within the SEPA zone, get in touch directly with the company or business where you are trying to make payments.
Is it safe to share my IBAN?
Using an IBAN to make or receive money transfers is considered completely secure by Eurozone finance regulators. As it’s only possible for others to transfer money into your account, they can not use the number to make cash withdrawals, there is very little risk. Still, remember only to share your IBAN and bank account details with people and providers you trust.
How do I avoid IBAN discrimination?
If you experience IBAN discrimination, inform the company that they are required to accept IBANs from bank accounts within the SEPA zone. If nothing comes of this, you can write a formal complaint directly to the company or to the relevant authority.
What companies don’t accept non-Irish IBANs?
Remember, IBAN discrimination is prohibited under EU law. However, there is still a number of companies and businesses across Ireland that do not accept non-Irish IBANs. In particular, gas, electricity, and broadband providers are commonly known as one of the worst offenders of IBAN discrimination. This can make settling down in Ireland and setting up direct debits with your chosen providers more complicated than it needs to be.
How do I get an Irish IBAN?
To get an Irish IBAN, you will need an Irish bank account. If you are making the move to Ireland and want to avoid any potential complications when setting up direct debits or receiving payments from your new employer, you might consider setting up a resident bank account in Ireland. Read more on how to open a bank account in Ireland here.
If you prefer to keep your banking entirely digital, why not consider a current account with Money Jar? Money Jar is a simple and straightforward approach to a digital account and has everything you need to take control of your money including setting up direct debits, standing orders, and making and receiving payments.
Setting up a bank account with us couldn’t be any easier.
- Download the Money Jar app
- Register your personal details
- Verify your identity using a standard form of identification
We provide lots of ways to help you stay on top of your spending and make the process of setting up an account easy. Find out more about how we can help you have the freedom to be better with money and anything else you might want to know about setting up a digital account with Money Jar here.
