In an increasingly interconnected world, IBANs (International Bank Account Numbers) have become an essential standard for bank transfers, especially within the European Union. However, despite their widespread use, there are some myths about their operation, security, and usefulness. Below, we’ll explore the most common myths about euro IBANs.
Insecure transactions
Some people believe that euro IBAN accounts have a low level of security, especially when making transfers. However, IBAN accounts have a system (algorithm) to validate each bank account’s details, reducing the risk of fraudulent transactions and unauthorized access to funds. It’s important to note that IBAN provides a standardized format for bank account numbers, which reduces manual errors and improves transaction accuracy. For example, IBANs have a unique alphanumeric structure, which includes a country code, check digits, and the account number.
Hidden commissions
Many people and businesses believe that euro IBAN accounts have hidden or unclear fees. However, most IBAN account providers are properly regulated and comply with certain financial industry standards, which require them to publicly and transparently display all their fees and charges (most publish their fees on their official websites).
Another point to keep in mind is that when a provider offers competitive and transparent rates, their reputation will be positive, and they will stand out in the market compared to other competitors. This means that providers with high rates and who are not transparent are “rejected” by the market simply due to supply and demand issues.
It is very dangerous to share your IBAN number
Some people think that sharing their account IBAN number is very dangerous, as it can lead to fraud or theft. While it can be dangerous to share our IBAN number with strangers or untrustworthy entities (especially alongside other personal data), if we share our IBAN account information with trusted individuals and companies, such as employers, clients, and well-known companies (or utilities), then we can rest assured that this information will be used for that purpose. In short, it’s not dangerous to share our IBAN number on its own, but we should be cautious and verify the person or company to whom we provide it.
Unintuitive and difficult to manage
Many people and businesses believe that IBAN accounts are unintuitive and difficult to manage. However, the truth is that thanks to technological advancements, businesses and financial institutions have various tools (developed by Fintech companies) that have a more user-friendly and intuitive design, which simplifies the management of euro IBAN accounts.
It is worth noting that companies such as Pilsenga have a platform and financial tools with a user-friendly and intuitive design, which improves the user experience and facilitates the management of IBAN accounts in euros.
Only for large companies
Some people and companies believe that euro IBAN accounts are designed only for large companies. However, the truth is that these types of accounts can be used by companies of all sizes, whether small, medium-sized, or large, which contributes to financial inclusion and the development of different organizations or entities, regardless of their initial size.
What do you think about this topic? Would you like to learn more about Pilsenga’s euro IBAN account service?
If you are interested in Pilsenga products and services (including dedicated IBAN accounts), you can contact us by following the link below.
