The Common Reasons For A GIRO Application To Get Rejected

GIRO transactions are very helpful for business owners who make many repeat payments every month. These transactions happen fast and automatically, but it takes some time to get your GIRO application approved. You need to be very careful when filling out the form. If the application is rejected, you will have to start over from the beginning, which can be frustrating and take a long time. 

This article will list some common reasons why a GIRO application might get rejected. Being careful about these things can help you avoid mistakes.

What is GIRO?

GIRO transfer, often called GIRO, is a way to transfer money electronically. It allows your business to make payments or collect payments from customers or other businesses directly from your bank account. It is a popular method for financial transactions, particularly in countries with electronic banking systems.

Interbank GIRO (IBG) or GIRO involves three parties: you, your Bank, and a billing organization (BO). GIRO is an arrangement your Bank provides for you to pay bills directly to a BO, which can be a government agency or a private company.

With GIRO, you instruct your Bank to transfer money from your account to pay bills to the BO. The BO provides your Bank with the payment details and amount, and your Bank transfers the money accordingly.

How long Does it take for a GIRO application to be processed?

As stated above, GIRO applications take a lot of time to be verified; in fact, it is one of the biggest drawbacks of making payments through GIRO. In many cases, it takes around two weeks for the application to be processed, and if it gets rejected, you will have to apply from the start and wait for two more weeks to get it done.

Some common reasons for the rejection of your GIRO application include:

• Incomplete/missing information on the form: Sometimes, while filling out the GIRO application form, we tend to miss out on a few details, which leaves the form incomplete. When you submit an incomplete form, it will be rejected directly. Also, if some of your details need to be corrected, your application will be thrown down the bin. Therefore, you must take time to cross-verify the document before submitting it. If you don’t understand the details in the form, get help from the bank officials.
• Your signature varies from the Bank’s records: When you sign the application form, make sure that your signature matches the one in your bank records. Your application will be rejected if the two signatures don’t match. 
• Your thumbprint on the form did not match the records.
• It’s important to note that any changes made to the form using white-out or correction tape can lead to rejection. To avoid this, ensure your application form is clean and free from any alterations. If you need to make changes, it’s best to start with a fresh form. 

These are just some of the many reasons why your GIRO application could get rejected. Make sure to contact the Bank to get a clear understanding of what needs to be done. 

Making the shift to eGIRO

In Singapore, the Association of Banks worked with eight major banks to create eGIRO. This new system aims to make Singapore a leading financial hub by improving the process for GIRO payments. The eGIRO service was launched on November 8, 2021.

The eight banks involved are:

• Bank of China
• DBS Bank/POSB
• HSBC Bank
• Industrial and Commercial Bank of China
• Maybank
• OCBC Bank
• Standard Chartered Bank
• UOB

eGIRO uses cloud technology and modern systems to simplify setting up GIRO payments. This creates an easy experience for customers, banks, and billing organizations.

Normally, the process to apply for GIRO takes 3-4 weeks from start to finish. But with eGIRO, the time is much faster. For individual consumers, eGIRO setup takes just minutes. For businesses with approvers, it takes less than 48 hours. This fast turnaround is possible because eGIRO is available 24/7.

Conclusion
GIRO transfers are ideal to handle recurring payments but as a business owner you must be careful while filling out the application. Make sure to avoid the common mistakes highlighted in article, to prevent your application from getting rejected. You can also use eGIRO services to skip the lengthy approval period of offline applications.