Single euro payments area – have payers´ rights been sacrificed for efficiency?

Banking & Finance

Mag. Stephan Schmalzl, ILO Newsletter vom 06. März 2015

A recent Supreme Court case considered whether a recipient´s bank was liable for damages arising from its execution of a payment order using an incorrect account number and bank sort code as unique identifiers, which caused the payment to be sent to an unknown third party. The court held that the payer bears the risk of a wrongful payment transaction due to an incorrect unique identifier.