What is BankGiro?

BankGiro is one of Norway's most widely used payment systems for invoices and bills. This electronic payment system makes it easy for both individuals and businesses to pay and receive payments with automatic reconciliation through OCR numbers.

What is BankGiro?

BankGiro is an electronic payment system that was established in Norway in the 1980s as part of the modernization of the Norwegian payment system. The system makes it possible to pay invoices and bills using OCR (Optical Character Recognition) numbers , which ensures automatic reconciliation at the recipient.

The main principle behind BankGiro is: - Supplier sends invoice with unique OCR number - Customer pays via online banking, mobile banking or bank branch - The OCR number ensures automatic reconciliation with the supplier - The payment is automatically recorded in the supplier's accounts

This system handles billions of kroner in payments annually and is used by practically all Norwegian companies.

How Does BankGiro Work?

Technical Process

The BankGiro system works through a structured process involving several actors:

1. Invoicing: Supplier sends invoice with OCR number
2. Payment: Customer pays via bank with OCR number as reference
3. Transfer: The bank transfers the amount to the supplier's account
4. Reconciliation: The OCR number ensures automatic reconciliation
5. Registration: The payment is automatically registered in the supplier's system
6. Reporting: Supplier receives detailed payment information

OCR Number System

The OCR number is the core of the BankGiro system and consists of: - Customer number: Identifies the customer with the supplier - Invoice number: Reference to specific invoice - Check digit: Ensures correct registration

Actors in the BankGiro System

The BankGiro system involves several important players:

Nets (Formerly BBS)

• Operator of the BankGiro system in Norway
• Technical infrastructure for payment processing
• Reporting to suppliers
• System development and maintenance

Banks

• Processes customer payments
• Transferring funds between accounts
• Offers payment solutions to customers
• Ensures payment security

Suppliers

• Sends invoices with OCR numbers
• Receive payments via BankGiro
• Reconcile payments automatically
• Reporting to accounting

Advantages of BankGiro

For Individuals and Companies That Pay

• Easy payment: Only OCR number and amount needed
• Automatic reconciliation: No risk of incorrect registration
• Flexibility: Can be paid via all Norwegian banks
• Security: Established and secure payment system
• Traceability: Easy tracking of payments

For Businesses Receiving Payment

• Automatic reconciliation: Significantly reduces manual work
• Improved working capital : Faster registration of payments
• Reduced costs: Less manual processing
• Better overview: Detailed reports from Nets
• Integration: Easy connection to accounting systems

Types of BankGiro Services

There are several variants of BankGiro adapted to different needs:

Standard BankGiro

• Single payments: For individual invoices
• OCR number: Unique number per invoice
• Manual payment: Customer initiates payment themselves

BankGiro Collection

• Bulk collection: Too many customers at once
• Automated process: Reduces manual work
• Reporting: Detailed collection reports

BankGiro with Reminder

• Automatic dunning: In case of non-payment
• Escalation: Gradual increase in reminder fees
• Legal follow-up: Connection to debt collection companies

Setup and Implementation

For Companies That Want to Receive BankGiro

Technical Requirements: 1. Bank account: Norwegian bank account for receiving payments 2. Agreement with Nets: Contract for use of BankGiro services 3. IT system: Accounting system that supports BankGiro 4. OCR Generation: System for generating unique OCR numbers

Implementation process: 1. Contact Nets: Enter into an agreement for BankGiro services 2. Technical setup: Implement OCR generation 3. Testing: Test the system with sample payments 4. Integration: Connect to accounting system 5. Launch: Start sending invoices with OCR numbers

Costs and Pricing

Service	Setup cost	Ongoing Cost	Note
Standard BankGiro	5,000 - 15,000 kr	1-3 kr per transaction	Depends on volume
BankGiro Collection	10,000 - 25,000 kr	2-5 kr per transaction	Includes reminder function
Integrated solutions	15,000 - 50,000 kr	Fixed monthly price	Fully integrated system

Accounting Treatment

Posting of BankGiro Payments

For Supplier (Recipient):

 Debet: Bank 10,000 kr 
Credit: Accounts receivable 10,000 kr

Automatic reconciliation allows payments to be automatically posted based on OCR numbers and linked to the correct accounts receivable .

Integration with Accounting Systems

Modern accounting systems support automatic import of BankGiro data: - Automatic posting: Payments are posted without manual intervention - Reconciliation: Automatic matching against outstanding invoices - Reporting: Integrated reports for follow-up - Control: Automatic checks for deviations

Comparison with Other Payment Systems

BankGiro vs AvtaleGiro

Aspect	BankGiro	AgreementGiro
Payment type	Single payments	Automatic, recurring payments
Initiative	Customer initiates	Supplier initiates
OCR number	Yes, per invoice	No, fixed agreement
Flexibility	High, paid when customer wants	Low, fixed date
Application	All types of invoices	Fixed bills (electricity, insurance)

BankGiro vs Vipps/Mobile Payment

Aspect	BankGiro	Mobile payment
Reconciliation	Automatic via OCR	Manual or semi-automatic
B2B suitability	Very well suited	Limited for larger amounts
Integration	High degree of system integration	Varying integration options
Costs	Low transaction costs	Higher costs per transaction

Legal Aspects and Regulations

Payment Services Directive (PSD2)

BankGiro is regulated under the PSD2 directive , which ensures: - Security: Requirements for secure authentication - Transparency: Clear information about costs - Competition: Opening for new players - Consumer Rights: Protection of Payers

General Data Protection Regulation (GDPR)

When using BankGiro, companies must follow GDPR requirements : - Data processing: Legal basis for processing customer data - Information obligation: Inform customers about data use - Rights: Respect customers' rights - Security: Secure personal data against misuse

Accounting Act

BankGiro payments must be documented in accordance with the Accounting Act : - Documentation: All transactions must be documented - Storage: Documents must be kept for 5 years - Traceability: Ability to track all payments - Control: Internal control of payment processes

The future of BankGiro

Technological Development

Digitalization drives the development of BankGiro: - APIs: Better integration with modern systems - Real-time payments: Faster payment processing - Artificial Intelligence: Automatic handling of deviations - Blockchain: Potential for increased security and transparency

Competition from New Entrants

New payment solutions challenge BankGiro: - Fintech companies: Innovative payment solutions - International players: Global payment systems - Cryptocurrency: Alternative forms of payment - Open Banking: New Opportunities for Integration

Practical Advice for Businesses

Implementation of BankGiro

Before implementation: 1. Assess needs: Analyze payment volume and customer base 2. Compare providers: Evaluate different providers of BankGiro services 3. Plan integration: Ensure compatibility with existing systems 4. Budget costs: Include both setup and ongoing costs

During implementation: 1. Test thoroughly: Conduct extensive testing before launch 2. Train staff: Ensure employees understand the new system 3. Inform customers: Communicate changes to the customer base 4. Monitor closely: Follow up the system closely during the start-up phase

Optimization of BankGiro Usage

For better working capital : - Short payment term: Reduce credit time to customers - Automatic dunning: Implement automatic dunning routines - Discounts: Offer cash discounts for quick payment - Follow-up: Systematic follow-up of outstanding receivables

For better customer service: - Clear invoices: Ensure that the OCR number is clearly visible - Payment instructions: Provide clear instructions for payment - Customer support: Offer help with payment problems - Flexibility: Offer alternative payment methods

Common Challenges and Solutions

Technical Challenges

Problem: OCR number is generated incorrectly Solution: Implement control routines and validation

Problem: Lack of system integration Solution: Invest in a modern accounting system with BankGiro support

Problem: Payments are not automatically reconciled Solution: Check OCR number format and system setup

Customer Service Challenges

Problem: Customers don't understand OCR numbers Solution: Clear information on invoices and customer guidance

Problem: Payments do not arrive Solution: Routines for follow-up and alternative payment

Problem: Customers complain about complicated payment Solution: Offer more payment options and better guidance

Conclusion

BankGiro is a robust and efficient payment system that has been a cornerstone of the Norwegian payment system for over 40 years. For companies looking to automate payments and improve working capital , BankGiro is an excellent solution.

The system's automatic reconciliation through OCR numbers significantly reduces manual work and minimizes the risk of errors. With the right implementation and integration, BankGiro can contribute to more efficient accounting processes and better customer service.

Although new payment solutions challenge BankGiro, it remains an important tool for Norwegian businesses, especially for B2B transactions and larger payments where automatic reconciliation is critical.

For businesses considering BankGiro, it is important to plan the implementation carefully and ensure good integration with existing systems. With the right setup, BankGiro can be a valuable investment that improves both efficiency and customer experience.