IBAN discrimination- why does it happen? what is being done?

02-09-2022 11:58AM #1

So, new Big Name employer (payroll overseas, 3 weeks gap). I give them my Revolut on sign up, it comes back saying “we can’t”. I remind them that’s illegal, but give my An Post Money account anyways, system supports multiple accounts. Local HR says “using Revolut is fine”. Grand so, both my accounts recorded. Come payday, zilch. I call them, they look into it, I get paid into An Post Money account.

It seems to me there’s a security switch that’s getting triggered when this happens, like the infrastructure was designed & built to take national payments only, and it would be hassle to change. Do I have it right?

Anyways, what do I do to twist these lad’s arms into legality?

Mrs OBumble · 02-09-2022 12:19PM

What do you have to do?

Quite possibly you will need to fail your probation.

02-09-2022 04:42PM

Respectfully Ms. Bumble I was hoping for a professional’s view as to why this happens and what can stop it from happening.

Mrs OBumble · 02-09-2022 05:08PM

Why it happens: because companies don't want to pay the price of making their systems compliant.

How to stop it: the cost of compensation for people who complain becomes higher than the cost of becoming compliant.

A necessary step towards this is for the company to take an unfair action, like getting rid of someone who complains, and for that someone to sue them.

walterking · 02-09-2022 11:53PM

Lithuanian IBAN has different number of digits.

They simply need to put you down as living in Lithuania when adding the bank details.

But with the number of horror stories about revolut blocking your account for no reason or not permitting direct debits to proceed, I would never use them as a primary account

Jim2007 · 03-09-2022 04:48PM

https://www.boards.ie/discussion/comment/119563090#Comment_119563090

Which would be false accounting... and cause hassle for public auditing and tax audits.

jahalpin · 03-09-2022 10:05PM

https://www.boards.ie/discussion/comment/119563090#Comment_119563090

They just need to put the bank location as Lithuania, you don't have to live there to have an account there as long as you an EU citizen

IBAN discrimination is a major issue in France and Germany as most companies and government offices will only accept local IBANs

Mrs OBumble · 05-09-2022 12:30PM

https://www.boards.ie/discussion/comment/119565998#Comment_119565998

Only if they continued to record the residence as Lithuanian: it may be possible to change it to that, enter the bank account number, and then change the residence back.

Dodge · 05-09-2022 12:38PM

https://www.boards.ie/discussion/comment/119573951#Comment_119573951

They’re more likely to say ‘get an Irish account if you want to be paid’. Up to the Individual to decide whether to pursue it further then

lawrencesummers · 05-09-2022 12:48PM

https://www.boards.ie/discussion/comment/119563090#Comment_119563090

Yea, because that kinda thing never happens irish banks

https://www.irishtimes.com/ireland/2022/08/05/an-post-moneys-systems-hit-with-serious-software-malfunction/

https://m.independent.ie/business/personal-finance/central-bank-called-on-to-probe-why-shoppers-hit-by-payment-outage-41474488.html

https://www.thejournal.ie/permanent-tsb-online-banking-issues-5668029-Jan2022/?amp=1

https://www.irishmirror.ie/news/irish-news/aib-customers-fume-huge-issues-26764749.amp

Jim2007 · 05-09-2022 02:24PM

An IBAN is internationally defined, it's 34 characters long and includes the possibility for a bank to add in additional information if they see fit. However it is also the responsibility of the issuing bank to ensure they work internationally, that means they need to be able to drop down to the core 13 digits. If your bank is issuing IBANs that can't be used internationally, then it is time you start talking to them.

The J Stands for Jay · 06-09-2022 07:28AM

https://www.boards.ie/discussion/comment/119573951#Comment_119573951

There's a lot of payroll systems out there that are using additional software which convert IBANs to old sort code and account number formats to work with the same old back end system. When it's time to make a payment file from the old system goes to the software which then concerts back and interfaces with the bank.

T old system still only deals with Irish sort codes, so cannot handle any non-IE IBANs (and even some IE IBANs from fintechs).

12-09-2022 09:31AM

https://www.boards.ie/discussion/comment/119574752#Comment_119574752

That's not correct:

An IBAN is up to 34 characters long. All IBANs for a specific country are the same length.
There's no such thing as dropping down to the core 13 digits. An IBAN is what it is, there's no short form.
A bank has no responsibility to make sure it works internationally. Once they issue a valid IBAN, that's it. The responsibility is on the processor of the IBAN

@[Deleted User] you can report them to the Central Bank: https://www.centralbank.ie/consumer-hub/explainers/what-is-iban-discrimination-and-what-can-i-do-about-it. However, you will have to balance that against the fact that you're still in your probation period - if they decide you're more trouble than you're worth, there's not a lot you're going to be able to do

walterking · 12-09-2022 10:33PM

https://www.boards.ie/discussion/comment/119574100#Comment_119574100

True - but at least you can talk to a person in an Irish bank and most likely get it rectified within 24 hour or be able to call into a branch,

Revolut customer service is NON EXISTENT. That's why its cheap. Accounts can be frozen for weeks, payments can be rejected for no reason even after you click approval. Revolut cannot give an answer to why this happens.

I would not in anyway use Revolut as a primary account

lawrencesummers · 13-09-2022 05:51AM

https://www.boards.ie/discussion/comment/119610257#Comment_119610257

Ive never once heard of a problem with revolut, ive never had a problem with revolut and im using it about 5 years now

IBAN discrimination- why does it happen? what is being done?

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