Payset prespective
May 1, 2025

Payset Brings Back Danish IBANs!

Payset has reintroduced support for Danish IBANs, giving clients the ability to freely transact with entities in Denmark and avoid the all-too-common IBAN discrimination in the country. Here’s how you can benefit.

If you reside in or transact with Denmark, a Danish IBAN isn’t just an option — it’s often a must-have financial tool.

Trying to send funds to and from Denmark without a local account can be difficult. You might encounter obstacles like preferences for local IBAN accounts, perceived risk around foreign IBANs, and often outright IBAN discrimination.

For these reasons, Payset’s reissue of Danish IBAN is huge news for our many clients who do business in Denmark.

Does Denmark Discriminate IBANs?

Under EU rules, companies and institutions in one member country are supposed to support payments from IBANs in any other member country.

But in reality, that isn’t the case, and IBAN discrimination is widespread.

Over a 31-month period, consumers reported about 3,500 cases of EU-wide IBAN discrimination via the “Accept My IBAN” platform.

The survey found that France and Spain accounted for over half of complaints. However, as many Danish small-medium-sized business owners know, IBAN discrimination is rampant in Denmark. 

We’ve identified four common causes of IBAN discrimination in Denmark:

  • A preference for Danish IBANs (for instance, by employers who insist employees have a DK IBAN for salary payments)
  • NemKonto system limitations (for instance, many foreign IBAN users report issues receiving government-related payments like social benefits, tax refunds, etc.)
  • Legacy banking and technical restrictions (for instance, many companies only recognize DK IBANs because they haven’t been updated for SEPA compliance)
  • Perceived risk and compliance concerns (for instance, a Danish landlord may refuse payments from a non-DK IBAN assuming its riskier)

Who’s Affected By IBAN Discrimination?

Anyone can be impacted by IBAN discrimination. That includes:

  • Payroll departments: Companies that pay foreign workers may find it difficult to pay workers who don’t have a Danish IBAN.

  • Salary recipients: People who work remotely for Danish companies may have trouble receiving payments such as salary, wages, and invoices.

  • Fintech account users: Even Danish locals may find their payments blocked if they rely on fintech services like Revolut, Wise, and N26, which don’t necessarily provide an IBAN tied to Denmark.

  • Small businesses: Businesses that partially operate in Denmark can face issues if their financial accounts are based elsewhere in the EU.

  • Renters: Landlords can refuse payments from non-Danish IBANs, posing issues for travellers and new residents of Denmark.

  • Government payment recipients: Individuals expecting tax rebates and other government benefits through systems like NemKonto might find themselves unable to receive payments without a Danish IBAN.

Why Does IBAN Discrimination Occur?

Danish companies and institutions can discriminate against non-DK IBANs for various reasons.

It’s not necessarily due to hostility toward foreign accounts. Some entities simply aim to minimize compliance and fraud risk by selectively supporting IBANs. 

Sometimes, it isn’t even intentional. Organizations might not know that they can transact with foreign IBANs, or they incorrectly believe they can’t transact.

Technical limitations are another issue. Danish companies and organizations may need to upgrade outdated systems before they start transacting with IBAN accounts on a global scale. Even some nationwide payment systems, such as NemKonto, are tightly linked to Denmark’s banking system.

Finally, enforcement is lax. Customers who experience IBAN discrimination should file a report, but rules are not always enforced and may carry little weight.

In the end, there’s no good reason for discrimination. But you can make sure it’s not an issue for you by obtaining a Danish IBAN — allowing you to take advantage of most of the country’s local payment systems.

Payset Provides Access to Local Payments in Denmark

A Danish IBAN from Payset gives you an easy way to transact in Danish krone (DKK). 

It can also help you access these payment systems:

  • SWIFT: The world’s largest international bank messaging network.
  • Intradag: Denmark’s same-day settlement system.
  • Kronos2: The Danish interbank retail payment system.
  • NemKonto: Denmark’s public payment system for government transfers.

Direct access to each network varies depending on the payment service that you choose. Contact your payment service provider for details.

How Local IBANs Benefit You

  • Get paid without restrictions: A Danish IBAN can prevent payments from an employer, client, or business partner from being blocked.
  • Pay your employees: Make sure that your contractors, freelancers, and foreign employees get paid no matter where they are.
  • Build trust: Guarantee your customers and partners that you can work in Denmark — and back your promise with reliable payments.
  • Get access to local services: Access banking services, online services, and government services that you’re otherwise eligible for.
  • Cheaper, faster payments: Enjoy rapid transaction speeds and low fees when transacting the Danish krone (DKK) and other supported currencies.

If you would like to benefit from a Danish IBAN from Payset, get in touch and a member of our team will assist you. 

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.

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