EBICS: how companies exchange payment files with their banks
EBICS, the Electronic Banking Internet Communication Standard, is a protocol for exchanging payment and account data between companies and banks over the internet. The German banking industry developed it, and banks in Germany, France, Austria and Switzerland use it. A company sends its payment files through EBICS and receives its account statements the same way.
From BCS-FTAM to EBICS 3.0
EBICS grew out of the BCS-FTAM protocol of 1995, according to Wikipedia. The Zentraler Kreditausschuss, today the Deutsche Kreditwirtschaft, started the replacement project in 2005, and EBICS became part of the German banks' agreement on remote data transfer on January 1, 2006. Since January 1, 2008, all German banks must support it, and support for BCS-FTAM ended on December 31, 2010. A common EBICS for Germany and France followed in February 2010, maintained by EBICS SC, which the Swiss and Austrian banking sectors joined later.
Version 2.4 came in 2008, 2.5 in 2012 and 3.0 in November 2018. EBICS 3.0 harmonizes the standard across the countries and identifies orders with business transaction formats (BTF). Signing and encryption, optional before, are mandatory from 3.0. SIX reports that Swiss institutions support 3.0 since November 2021.
What runs over EBICS
The transport is HTTPS, the messages are XML, and X.509 certificates secure signing and encryption. Most traffic is payments: SEPA XML credit transfers and direct debits going out, and camt.053 statements and camt.052 intraday reports coming back. Since version 3.5 of the German format specification, SEPA instant transfers can also be sent over EBICS. EBICS also carries securities messages, PDF documents and master data.
A company uses EBICS from its ERP or treasury system without the bank's own software. Stripe names the operational setup: separate roles for whoever creates, approves and sends a file, the four-eyes principle and key management.
EBICS or a banking API?
EBICS works in batches, while banking APIs answer in real time. Stripe sees EBICS where volumes are high, compliance is strict and several banks are connected to one ERP, and APIs for low volumes and real-time e-commerce. Swift and host-to-host links are the alternative for large groups, with more effort to set up. Many companies run EBICS through a payment hub.
Upcoming payments events
Which banks offer EBICS?
Every bank in Germany, since EBICS support became mandatory on January 1, 2008. In France, Austria and Switzerland the major banks offer it too; in Switzerland its use is optional for institutions.
What is the difference between EBICS and FinTS?
FinTS, formerly HBCI, is the German standard for online banking from finance software, used for single orders and account queries. EBICS is built for companies that transfer large payment files and statements and need several signatories per file.
Do I need EBICS 3.0?
Banks are moving their customers to 3.0, and some new message versions need it: in Switzerland the latest SPS formats run only over EBICS 3.0. Moving from 2.x has to be coordinated with each bank.
EBICS and Finance Loop
Finance Loop brings together corporate treasurers and the bank teams that run their EBICS connections. Finance Loop holds events in Frankfurt, Munich, Berlin and Hamburg.
Finance Loop is a professional network and has the goal of driving the adoption of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.