Sixteen digit account numbers too hard to handle

Business bank accounts, direct credit and debit on credit cards, and transactions conducted using 16 digit scheme debit card numbers will be outside the scope of the account switching implementation package to come into operation in November.

The Australian Payments Clearing Association released a progress report yesterday, saying the scheme was on track for implementation in November.

Also outside the scope of the scheme will be direct debit and credit arrangements not processed through APCA's bulk electronic clearing system.

Under the proposed terms of the scheme the old financial institution will provide a list of the customer's direct debit and credit arrangements over the past 13 months to the customer in order to facilitate the establishment of those arrangements for the new account.

The new financial institution will give the customer information and support to help the customer make the switch.

The arrangements appear to envisage the supply of a printed list a customer can take to a new bank rather than any plan for one bank to transfer an electronic file for use by the second bank.

Industry codes of practice will include obligations in regard to timelines and the provision of information on how to avoid exception fees.