Sending and receiving payments are business critical processes and when payments fail the impact on a company’s bottom line can be very serious. One area which causes payment failure but which may be overlooked is in the collection and storage of bank account data.
When you collect and manage customer and supplier bank account data there are four key reasons why errors occur, and all can lead to payment failure:
1. Error when collecting data
This can occur in busy call-centres, on websites or even with a customer in front of you. When asking for strings of numbers it’s very easy to mis-hear or mis-key information.
2. Error when transferring data between systems
This is another potential source of error particularly when any kind of re-keying of information is required.
3. Error that develops over time
Remember the adverts where banks become wine bars? The closure of bank branches and the merger and takeover of banks all lead to changes in bank account data. Many people don’t even notice that their account information has changed let alone inform those they are paying or receiving payments from.
4. Error as a result of industry changes
Recent initiatives such as SEPA (Single Euro Payments Area) have sought to standardise bank account formats, principally using IBAN (International Bank Account Number), and this means that Bank Account data needs to be presented in a different format. To comply, legacy data needs to be converted. Conversion without validation or inaccurate conversion introduces error.
To find out more about why error occurs, the impact it has and what you can do to solve the problem please click here to download your free copy of our guide “Does Valid Bank Account Data Matter?”