New Law Speeds Payments within Europe

The law is based on the EU's Directive on Payment Services, which also covers the EEA countries (Norway, Iceland and Liechtenstein). Under the directive, payments must clear within three days with the 30-nation region, and beginning in 2012, within one day.

The act also limits a customer's liability for costs incurred through the loss of a card to 150 euros -- unless he or she has acted negligently, such as keeping a card and its passcodes in the same wallet. It also stipulates that customers are responsible for keeping their cards and passcodes carefully and separately. In any case, the cardholder's responsibility ends when he or she informs the financial institution that a card has been lost or stolen.

Each Finnish bank account will be converted into international format according to Single Euro Payments Area (SEPA) standards.

Finnish bank account numbers will increase from a maximum of 14 digits to 18 when FI prefix and a couple other identifying characters are added to the beginning," explains Anne-Mari Tyrkkö, Senior Vice President, Payment Services at OP Bank Group.

Account numbers that are now shorter than 14 digits will be extended accordingly. Each client's new International Bank Account Number (IBAN) is listed on his or her bank statements. Its use will become mandatory, even for domestic payments.

Tyrkkö notes that Finnish tax returns and Social Insurance Institution (Kela) forms already ask for bank information in IBAN format. By the end of 2011, use of the new numbers will be obligatory.

In another change, all bank and debit cards without chips will be phased out by next year. Meanwhile, the use of PIN codes will become mandatory when purchasing with a chip card. A signature alone will no longer suffice.