Consumers are satisfied with the Switching Service

To make it easier for consumers to move their payment account to another bank, Dutch banks have offered a convenient and effective Switching Service since 2004. For 13 months, the service redirects almost all incoming payments and direct debits from the old payment account to the new one.

Also for salary payments

On Wednesday 12 March, Paul Tang, the Labour Party’s lead candidate in the forthcoming European Parliament elections, stated in NRC Handelsblad that salary payments would not be redirected by the Switching Service. This is a misunderstanding: salary payments are also redirected to the new payment account for 13 months.

Clear and complete overview of incoming payments

The Switching Service also provides a clear and complete overview of every person and organisation transferring money to the old payment account for up to 13 months after the service starts. The account holder can then decide who should be informed of the new payment account. To notify a person or organisation of the new account number, the account holder receives a convenient form requiring only the relevant payment details.

Consumers have to arrange almost nothing themselves for recurring direct debits. During the switching period, direct debits from the old payment account are redirected to the new account. The Switching Service automatically informs creditors that they must use the new account number for future direct debits.

Satisfied users

Around 80,000 account holders use the Switching Service each year. Every two years, research is carried out with the Dutch Consumers’ Association to assess users’ satisfaction with the service. The most recent satisfaction survey, from 2011, found that 94% of users rated the service seven or higher out of ten. Eighty per cent experienced no obstacles or problems when using it.

Broad support

Paul Tang therefore belongs to a small minority who experienced problems and were not satisfied with the Switching Service. He wants a service that takes almost all tasks and responsibilities out of the account holder’s hands. Dutch banks have instead chosen a Switching Service that is simple, efficient and flexible for as many account holders as possible, and that accommodates as many switching situations as possible.

It has been suggested that account number portability could solve everything. This is not the case. Moreover, the new IBANs required for the integration of the European payments market are inherently non-transferable. A European IBAN contains a country code, a two-digit check number and a bank code, making it practically impossible to transfer an IBAN to another country or bank. At the same time, the country code, check number and bank code make payments within Europe reliable and efficient. Typing errors in the account number are detected immediately through the check number, while the country and bank codes ensure that a payment is delivered quickly and accurately to the correct bank in the correct country. The Switching Service naturally also works with IBANs.