Changes to billing and payments in 2014
On 1 February the technical and business requirements of the Single European Payments Area (SEPA) started to apply in Estonia. Account numbers were converted into IBAN format and the banks replaced domestic direct debits with a service based on e-invoices that allows bills to be paid automatically. Companies and institutions had to amend the account numbers on their invoices and forms and change the way they send payments to the bank. For many companies this meant that they had to upgrade their business management or accounting software.
Private individuals and businesses have been given two additional years to get used to the changes in payments. This means that banks in Estonia are able to offer conversion services for payments made by clients in the old format during the transition period until 1 February 2016. So if a private individual can't remember an IBAN format bank account number or doesn't know it, the bank itself will change the domestic account number into the new format. Banks will help companies put their data into the required ISO 20022 XML format, but companies will have to contact their bank themselves if they want this service.
After the transition period, banks will not be able to accept payments made in the old format, so everyone needs to get used to the changes by 1 February 2016.
It should be remembered that it is the responsibility of whoever initiates the payment to make sure that the payment orders are submitted to the bank at the right time and in the right format.
| What do BUSINESSES need to know? | What do PRIVATE INDIVIDUALS need to know? |
The change to SEPA was made to benefit from the advantages of the integrated market, and to make it easier, faster, simpler and safer for people and companies to make payments. In the longer term, people and companies will only need one payment account and bank card in their home country to make and receive payments and other transactions across the whole European Economic Area.