From October 2025, a novelty that will affect all clients in Slovakia. When entering a bank transfer in euros,they will be able to verify whether the account number (IBAN) they enter,they actually belong to the person or the company they referred to as the recipient.
Slovak Banks to Roll Out Safer Euro Payments
Banks in Slovakia will soon implement a new system to verify euro transfers, aiming to boost payment security.
- Starting October 2025, banks will verify recipient names and IBANs.
- The system will alert users if the name and IBAN don’t match.
- Diacritics will be automatically “cleaned” for accurate matching.
Come October 2025, a new payment security feature will be implemented by banks in Slovakia, allowing customers to verify the recipient’s account number (IBAN) when making euro transfers. This aims to increase the security of payments.
How It Works
When a payment is initiated, the recipient’s bank will compare the name provided by the payer with the data in its system. If the facts matches, the system confirms the payment details are correct. If the data doesn’t match, the payer will be notified, ofen through alerts in internet banking or mobile apps.
A significant detail is that the system won’t penalize minor variations in names. Banks will automatically “clean” data by removing diacritics or special characters before comparing. As an example, “Ján Novák” can be entered as “Jan Novak” without causing a mismatch. the primary objective is to enhance payment security.
When the Recipient’s Name is Unknown
In scenarios where the payer doesn’t know the recipient’s name, such as when paying for goods advertised online, payments can still be made. The bank will inform the payer that recipient verification wasn’t possible.
The bank is obligated to inform the payer that there will be no recipient verification if the client doesn’t know the account holder’s name.
deeper Dive: Why the Change?
The primary driver for these euro payment changes is fraud prevention. Banks are constantly working to combat financial crimes, and this verification system is designed to reduce the risk of payments being sent to incorrect or fraudulent accounts. This feature helps protect both individuals and businesses that make electronic transfers.
Another key benefit is the reduction in errors. Typos in account numbers are a common cause of payment failures or misdirected funds. Thus, the system helps ensure money goes where it is indeed intended, promoting efficiency in financial transactions.
Practical Tips for Users
- Double-Check Recipient Details: Before initiating a euro transfer, take extra time to ensure the recipient’s name and IBAN are accurate.
- Review Bank Notifications: Pay close attention to any alerts or notifications from your bank regarding recipient verification.
- Contact Your Bank if Uncertain: If the verification process flags an issue, or if you have doubts about the recipient, contact your bank’s customer service immediately.
- Update Your Contact Information: Ensure your bank has your current contact details, so you receive timely alerts.
Myths vs. Facts
| Myth | Fact |
|---|---|
| This new system will make all payments instant. | The verification process occurs before the payment is processed, not during the transfer itself. Payments will still follow usual processing times. |
| My payments will be automatically rejected if there is a minor name discrepancy. | Banks will “clean” names by removing diacritics. Thus, small variations will usually be ignored. Only meaningful mismatches will trigger an alert. |
FAQs
Will this system work for all types of payments?
The system applies to euro transfers within the Single Euro Payments Area (SEPA). It generally covers payments between banks in the european Union and some other countries.
What happens if the recipient’s name does not match?
The payer is typically notified, and the payment may halt or require confirmation. Each bank has its own protocol.
Does this system mean my payments are 100% secure?
No. While this system improves security, no system is flawless. Users must remain vigilant and follow safe payment practices.
Are there any fees associated with this new feature?
The recipient verification feature is generally provided free of charge by your bank as part of its standard service.
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