New utility and other bills payment collection standard opens possibilities for companies to collect payments more effectively
Payment service providers and companies collecting funds under special payment forms via internet banking will be able to act more effectively by using a new utility and other bills payment collection standard announced by the Lithuanian Standards Board. The standardised solution approved will not only help ensure compliance with legislative requirements but provide additional benefits for companies as well.
‘Companies and payment service providers have managed to come up with a joint solution on how to change outdated utility and other bills payment collection practices that no longer comply with legislation. The new technical specification will enable to collect utility and other bills payments payable under special forms into one account no matter which payment service provider the payer has opened an account in. The other remaining obstacles for using the ‘one stop shop’ possibility were fully eliminated by the new Law on Payments,’ says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
He noted that new legislative environment and the new utility and other bills payment collection standard allow companies to reduce the number of agreements with service providers, more easily shift to other service providers, and will strengthen the negotiating powers of companies in negotiating payment collection fees.
The amended Law on Payments establishes that the fee for the administration of received funds cannot vary subject to the payer's bank. It has also been established that residents will be able to use the main payment account service at a regulated price, which will also comprise the fee for utility and other bills payments into any bank or other payment service provider.
It is planned that the technical specification ''Credit transfers. Utility and other bills payment collection" approved by the Lithuanian Standards Board will be finally implemented in the market and fully used by companies already as of 1 April 2017. Banks and other payment service providers, taking into account that companies will need time to test the changes of this service, should introduce all changes in their systems at the end of this year at the latest.
This technical specification can be used by all payment service providers and companies concerned. For more information on this document, go to the website of the Lithuanian Standards Board.