Glossary

Finnish banks’ online invoicing services: Electronic invoicing and payment of electronic invoices

Many Finnish companies offer their customers an opportunity to receive invoices not on paper but electronically, in the form of online invoices.  Online invoices sent to consumers are called e-invoices.

Most Finnish banks offer their customers an opportunity to receive e-invoices to the customer’s online banking site.  By signing an agreement on this service, the customer accepts the general terms and conditions applied to the e-invoicing service and the terms applied by the bank.

When signing the service agreement, the customer receives an address from the bank to which future incoming e-invoices are to be sent.  The customer may then give this address to invoicers whose invoices he or she wants to receive to his or her online banking site.  The bank then sends the e-invoicing address to the invoicers chosen by the customer and keeps the invoicers informed of any changes in the address, if the invoicers have made an agreement with the bank about incoming-address notification service.

The invoicer sends an e-invoice addressed to the customer to the customer’s online banking facility, where the customer may check the invoice and approve it for payment.  If the customer does not approve the invoice for payment, no charge is posted to the customer’s account.  If there is any discrepancy about the payment, the customer is advised to contact the invoicer.

All payments made in settlement of e-invoices are transferred to the payees as account-to-account transfers.  When a payment has been charged to the customer’s account, it can no longer be cancelled.

E-invoice
E-invoice is an invoice devised by Finnish banks for presentment to consumers online, built on the Finvoice standard.  The sender of the invoice sends an e-invoice electronically to the recipient’s online banking site.  To enrol for electronic invoicing service the customer has to make an agreement with the bank.

Online banking site/facility
A facility provided by banks to their customers for banking online which gives the customer access to banking services and other service providers’ services that may have been linked to the banking services, using the internet or another means of remote communication.

Online invoice
Online invoice is an electronic invoice sent from the invoicer’s system to the customer’s system electronically.  There are several online invoice formats in Finland.

The invoice can be viewed on the computer screen in a form similar to a paper invoice and circulated for acceptance as required.

An online invoice may be used for invoicing both businesses and individual consumers.  If the recipient is a consumer, the invoice is sent to the recipient’s online banking facility and the invoice is referred to as an e-invoice.

Finvoice
Finvoice is an invoice devised by Finnish banks for presentment online.  Finvoice online invoices can be sent from the invoicer to the customer through the intermediary of a bank.  Finvoice is a solution equally suitable for invoicing large, mid-sized or small businesses or consumers.

Terms relating to conclusion of contract

Agreement on e-invoicing service
The customer and the bank agree between themselves on the use of e-invoicing service.  By signing an agreement, the customer accepts the general terms and conditions applied to e-invoicing service and the terms applied by the bank.  When the agreement is concluded, the bank gives the customer an address for incoming e-invoices.

Customer/Payer
The customer/payer is the recipient of an online invoice/e-invoice.

Invoicer/Sender
Invoicer/sender of an invoice is the party that sends an online invoice/e-invoice to its bank for further transmission to the recipient.

An online invoice or e-invoice may also be sent by an invoice processor authorised by the invoicer.

Incoming address
The incoming address for e-invoices is made up of a code that identifies the customer/payer of the invoice and the bank.  The customer identification code is the International Bank Account Number (IBAN) and the bank is identified by the Bank Identification Code (BIC).

Address notification service
Address notification service is a facility through which the recipient of invoices informs his or her invoicers of the incoming address for future e-invoices. 

Payer identification data
When informing the invoicer of his or her incoming address for future e-invoices the customer also gives other details such as customer number, mobile phone number, invoice reference number or another number needed by the invoicer to identify the payer.

Reason for invoicing
When informing the invoicer of his or her address for incoming e-invoices, the customer also gives the reason for invoicing where needed, eg in cases where the invoice pays for a subscription to a magazine.  If the invoicer has several invoicing reasons, such as several magazines, the customer sends a separate acknowledgement of receipt for each e-invoice.

Other terms relating to electronic payments

Direct debit
Direct debit is a service where the bank debits the customer’s account, under an authorisation from the customer, for the agreed invoices at the due date and transfers the funds to the invoicer’s account.  The invoicer sends the customer a separate advice of forthcoming debits to the account.

Direct invoice
Some invoicers provide their customers with direct invoice service similar to online invoicing.  Direct invoice is not a joint effort of Finnish banks and it is not provided by all banks.

Direct invoice is sent to the customer’s online banking facility, where the customer has to approve the invoice before the amount is charged to his or her account.  The invoice data is stored in the invoicer’s systems, to which the customer has access through a link.

The customer makes an agreement on direct invoicing with his or her bank.

Online payment
Online payment or “button” payment is a service which the customer may use for paying for shopping on the internet to the debit of his or her bank account online by means of his or her online banking facility.

After confirming his or her online shopping, the customer can access his or her online banking site with a click of a button and pay for the shopping by approving a pre-completed form containing the necessary details.  After the payment, the customer returns to the site of the online shop.