Why does the resolution simplify payments?
All the member countries of the EU had different ways of expressing domestic account numbers and the formats for making domestic payments: • The IBAN provides one common style, (even though they look different) of account number format across the EU & EEA. IBANs have self-checking data within them, so if the numbers are missed, added or transposed, the error will be detected by the sending bank. • Banks sending IBANs in the EU have the responsibility to check the data is valid before it is sent. • Used with a BIC, an IBAN allows a payment to be routed through to the beneficiary’s account in a fast & efficient way. • Creates a common way to make cross-border payments.
