Get up to speed on the EBICS protocol

An API (application programming interface) allows different software to “communicate” and exchange information. When it comes to accounting, APIs can automate anything from retrieving your bank statements to initiating payments.

If you prefer more traditional, established, and secure standards, then look no further than EBICS. In this article, you’ll see how the EBICS protocol can help you centralize all your bank statements and speed up your bookkeeping.

EBICS stands for Electronic Banking Internet Communication Standard and was introduced in 2006 as a norm for the European banking industry - replacing ETEBAC in France.

EBICS is designed to offer banks and their customers an effective solution to combat payment fraud. Ensuring communications between customers and banks remain secure, EBICS sends XML messages via encrypted HTTPS requests.

The protocol can help you:

• Automatically retrieve bank statements.
• Initiate payment orders such as bank transfers.
  
  

EBICS is a valuable tool for accountants because it’s encrypted - helping them get their clients’ bank statements faster and more securely.

EBICS T (Transport) is the precursor to the EBICS TS protocol - which we'll cover in the next section.

This system allows you to retrieve bank statements and send payment orders to your bank. It's simple to set up and makes data exchange easy.

However, the EBICS T protocol requires an additional signature to authorize transactions. In the past, you had to send this signature to your bank by fax.

Nowadays, signing bank documents is much simpler thanks to new technology; you can usually sign via your online banking service or your bank's mobile app.

The EBICS TS protocol (Transport & Signature) was launched in 2017. Designed to bolster the security of all your banking operations, it requires an electronic signature to authorize the secure transferal of data.

This upgrade provides reinforced security and helps companies automate the approval process for transferring data - without having to provide an additional signature.

EBICS TS therefore enables banks and their customers to make fully secure payments across the European Union, with less paperwork.

With the EBICS T protocol, the payer transfers the payment file through EBICS and approves it via another channel, such as an in-app notification. To ensure full security, Qonto requires users to log on to the platform to approve payments.

Using this protocol typically involves 3 different parties:

• The company requesting payment orders to pay its suppliers or employees, for example.
• The payment signatory, who is usually the company's CFO or accountant.
• The bank, which receives the data and verifies the signatory's identity before executing the transfers.

It’s always the customer who initiates transactions using the EBICS TS protocol - never the bank.

To transfer data to its bank, a company generates a compressed file that’s encrypted and then separated into several files. Banks typically use 3 RSA key pairs to safeguard this data transferal.

Whereas EBICS T involves 3 different parties in the process, EBICS TS requires a 4th: the certification authority, which issues the tokens after authenticating the signatory's identity.

As mentioned above, EBICS is primarily designed to combat fraud and limit manual input during payment processing.

Using XML-format files and a registered certificate to identify the payment originator, the protocol provides an essential layer of security in an increasingly digital world.

Paying your suppliers and employees via EBICS also helps your finance department win back time - especially when they’re performing tasks involving sensitive data.

With the EBICS protocol, you can automatically export all your bank statements on a daily basis - ensuring the data in your ERP (enterprise resource planning) software or TMS (treasury management system) is always reliable, accurate, and up-to-date.

This real-time information is essential for managing your company's cash flow and making data-driven decisions to guide your strategy.

EBICS not only helps you close your books faster, it also significantly reduces manual entry errors. Your preferred accounting software automatically retrieves your documents and eliminates the need for human input.

Setting up an EBICS connection between Qonto and jedeclare.com therefore allows you to centralize all the documents you need for your accounting.

If you'd like a complete overview of all your bank accounts from one app, connect your Qonto account to PulCEo via EBICS. You'll receive setup instructions by email within 24 hours of your request.

Ready to discover what EBICS can do for your business? From speeding up your bookkeeping to transferring data with peace of mind, connect Qonto to your ERP or TMS and start reaping the benefits (video in French).