New payment forms take effect in North Macedonia today: 19-character IBAN becomes mandatory

The implementation of the international ISO 20022 standard is bringing changes to North Macedonia’s payment system. Forms PP 30 and PP 50 are being replaced, while individuals and businesses are required to complete payment orders using the full 19-character IBAN, new four-letter codes and more structured rules for online and mobile banking. The changes do not affect the currency or ownership of bank accounts.

For everyday payments, the main change is that denar accounts must be entered in IBAN format. What was previously shown as 15 digits must now be entered in full, with the MK07 prefix, for a total of 19 characters.

The customer’s account remains the same, but the international country code and two check digits are added. The latter verify the details in electronic systems: if even one digit is entered incorrectly, the system or app stops the payment before the funds are sent to the wrong account.

The classification of payments is also changing. The previous numerical codes, including 100 for purchases, 200 for services, 310 for salaries and the 500 series for budgetary obligations, are being replaced by four-character ISO codes.

SALA will designate salary payments; UTIL will be used for utility bills such as electricity, water and internet; and TAXS will identify taxes and administrative fees. GDDS is used for goods, SCVE for services, RENT for rent and INSU for insurance.

Mobile and online banking users generally will not need to memorize the codes. Banks are adding them to the relevant menus in Macedonian, with explanations of each payment type.

Beneficiary details saved in banking apps have been automatically converted to IBAN format. However, some older templates for recurring monthly payments may need to be updated.

If an old three-digit code has no direct equivalent in the new system, the app will ask the user, when making the first payment, to select the new code from the menu and save the payment order again.

The rules for entering the reference number and payment model have become stricter. The standardization aims to prevent incomplete bills from public utility companies and telecommunications operators.

For people who make payments at bank or post office counters, the change also brings new forms.

KTD, or Denar Credit Transfer, replaces form PP 30 for payments between individuals and companies. KTB, Credit Transfer for Budget Users, replaces PP 50 for taxes, fines and state fees.

Form VG for cash deposits replaces PP 10, while PG for cash withdrawals replaces PP 40.

Companies will use form ZKT, Summary Credit Transfer, instead of PP 53 for bulk salary payments.

The technical upgrade of the domestic payment system is preparing the banking sector for the country’s membership in SEPA. The system is expected to enable faster, cheaper cross-border transfers with European countries.