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The headline says it all. The payment format Telepay is coming to an end very soon, and it’s to be replaced by the new standard, ISO 20022 XML.
However, there are still many companies that are not prepared for the transition to the new format. This can lead to unfortunate consequences for both banks and businesses.
One of the downsides? You might end up unable to pay your bills on time.
Why is this happening?
For those who might not be in the loop, Telepay is a payment format we have been using in Norway for ages. It’s what businesses have used to move money between their accounts and the bank.
But let’s face it, Telepay is getting a bit old school, especially when you compare it to the newer and more robust payment formats, such as ISO 20022 XML. This new format is all about making payments smoother, faster, and just plain easier for everyone involved.
The EU is also on a mission to make sure payments work the same way across borders, and XML is leading the charge. That means old formats like Telepay are on their way out, with banks planning to phase them out by 2024.
And DnB (Den norske Bank) is first to cut the cord.
By 1st April 2024, all payment files must be sent to the bank in XML format.
What does this mean?
This means businesses need to act now.
Sure, a lot of the heavy lifting falls on businesses, but let’s be honest, banks could have done a better job letting everyone know about this big switch. The stakes are high and the consequences for businesses could be very serious – and not least frustrating for those not ready by the deadline.
Businesses have got two choices: either make sure their ERP or accounting software can handle ISO 20022 XML or find a third-party to turn those old Telepay files into a shiny new XML-format.
Once the deadline passes, banks will not accept payments sent in the Telepay format.
What’s at stake?
Here’s the thing – if you’re not prepared, you are looking at some real headaches. No XML solution means that you’re stuck in the slow lane, risking delays and all sorts of operational challanges.
First of all, your financial systems might not keep up and get updated in time, and potentially you could miss bill payments.
Second, your finance team might end up drowning in manual work – which in turn increases the risk of human errors, especially with payments and keeping the books straight.
Sitting this one out? That will cost you.
How to fix it
With Aritma Pay, we offer a quick solution that can help businesses avoid these problems. We convert those old formats (like Telepay) into ISO 20022 XML, so you don’t have to overhaul or change your ERP system.
Discover how we’ve already helped loads of Norwegian businesses with this challenge.
Worried about the big payment switch? Ensure your business is ready for XML.
Reach out now, and talk to one of our experts.
