The new banking rules for transfers, which have been in effect for just over two weeks, are causing “uncertainty and confusion” among bank customers, said Gabriele Zgubic, head of the Consumer Protection Department at the Vienna Chamber of Labor, on Friday in the Ö1 program “Morgenjournal.” However, she said the new requirements are generally a positive step. Zgubic also sees the banks as having a responsibility — they must “provide more education and information.”
The new rules require banks to check whether the recipient’s name and IBAN match for every transfer. If they do not match, the customer is alerted. Zgubic advised consumers to review all payment details when warned and, if necessary, contact the recipient directly. Companies, such as craft businesses, should verify that the name on their invoices matches the name registered with their bank.
Earlier this week, charitable organizations had expressed concern that the new rules could affect them “in the crucial donation months before Christmas.” Ruth Williams from the Fundraising Association Austria told Ö1 that problems primarily affect organizations with long names, names containing umlauts, or those where the organization’s name is written in another language.
Bank Spokesman Sees Only “Minor Start-Up Issues”
The banking sector itself views the situation as relatively unproblematic. Franz Rudorfer, managing director of the Banking and Insurance Division of the Austrian Economic Chamber, told Ö1 that there are only “minimal start-up issues.” He said banks are “continuously working on fine-tuning the system.”
The Financial Market Authority (FMA) issued a similar statement to APA, saying it has observed “no significant difficulties.” No complaints have been received so far, which the FMA interprets as a sign that “any potential issues between banks and customers have been resolved amicably.”
Since October 9, banks have been required to offer instant transfers within the euro area. To prevent transfer errors and fraud, new security procedures have also been introduced: banks must verify whether the IBAN and recipient name match before completing the transfer. The system uses a traffic-light model: if both details match, the bank gives the green light to proceed. For slight discrepancies (yellow), such as a typo in the recipient’s name, the system suggests the correct name. In cases of major discrepancies (red), the transfer is flagged. Customers can still override the warning and proceed, but they assume full liability if the transfer goes to the wrong recipient.
