A company or public authority refusing to accept your German or Lithuanian IBAN because you live in Spain or France isn't just inconvenient — it's a clear violation of EU law that's still shockingly common more than a decade after SEPA took effect.
What the law actually requires
Article 9 of the SEPA Regulation (EU) No 260/2012 requires that any payee accepting a credit transfer, and any payer authorizing a direct debit in euros, must accept a valid IBAN from anywhere in the EU/EEA — not just from their own country. This applies to businesses, employers, and public administrations alike. Refusing to pay a salary into a foreign euro IBAN, refusing to accept a utility bill payment from a non-domestic account, or requiring a domestic-format IBAN as a condition of service, are all clear violations.
Why this keeps happening despite being settled law
The European Commission has publicly acknowledged that IBAN discrimination remains a real, persistent problem more than a decade after the SEPA migration deadline — a Single Market Enforcement Taskforce set up in 2023 found the complaints concentrated heavily in the telecom and utility sectors. Most cases stem from outdated internal payment systems or simple unfamiliarity with the rule, not deliberate defiance — but the legal violation is the same either way.
How to challenge a rejected IBAN
- Put the request in writing, explicitly citing Article 9 of Regulation (EU) No 260/2012, and stating that refusing your valid EU/EEA IBAN is unlawful.
- Give the company or authority a specific, reasonable deadline to correct the issue and process the payment using your actual account.
- If they refuse, escalate to your national competent authority — in Spain, the Banco de España; in Germany, BaFin; in France, the ACPR — each EU member state has designated a body responsible for enforcing SEPA compliance.
What This Means for You
- Don't accept "we only accept domestic accounts" as a legitimate reason — under EU law, it generally isn't for euro-denominated SEPA payments.
- Cite Article 9 specifically in your written challenge — this signals you know the actual legal basis, not just a general complaint.
- Keep a record of the refusal and your written challenge — this is your evidence if you need to escalate to a national regulator.
- Report persistent violations to your national authority even if your own case gets resolved — this is exactly the kind of pattern regulators track.
Related Kibbo Tools
Sources
- EUR-Lex — Regulation (EU) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro. eur-lex.europa.eu
- De Nederlandsche Bank — SEPA and IBAN discrimination. dnb.nl