1 Goals 2 Overview
2.1.1 SEPA Credit Transfer 2.1.2 SEPA Instant Credit Transfer 2.1.3 SEPA Direct Debit
3 Coverage 4 Charges 5 Key dates 6 Uptake 7 See also 8 References 9 External links
Goals The project's aim is to improve the efficiency of cross-border payments and turn the fragmented national markets for euro payments into a single domestic one. SEPA will enable customers to make cashless euro payments to anyone located anywhere in the area, using a single bank account and a single set of payment instruments. People who have a bank account in a eurozone country, will be able to use it to receive salaries and make payments all over the eurozone, for example when they take a job in a new country. The project includes the development of common financial instruments, standards, procedures, and infrastructure to enable economies of scale. This should, in turn, reduce the overall cost to the European economy of moving capital around the region (estimated as two to three percent of total GDP). SEPA does not cover payments in other currencies than the euro. This means that domestic payments in SEPA countries not using euro will continue to use local schemes, but cross border payments will use SEPA and euro against eurozone countries. Overview There are two milestones in the establishment of SEPA:
Pan-European payment instruments for credit transfers began on 28 January 2008; direct debits and debit cards became available later By the end of 2010, all present national payment infrastructures and payment processors were expected to be in full competition to increase efficiency through consolidation and economies of scale
For direct debits, the first milestone was missed due to a delay in
the implementation of enabling legislation (the Payment Services
Directive or PSD) in the European Parliament. Direct debits became
available in November 2009, which put time pressure on the second
Credit transfers: SCT – SEPA Credit Transfer Direct debits: SDD – SEPA Direct Debit. Banks began offering this service on 2 November 2009. Cards: SEPA Cards Framework
To provide end-to-end straight through processing (STP) for
SEPA-clearing, the EPC committed to delivering technical validation
subsets of ISO 20022. Whereas bank-to-bank messages (pacs) are
mandatory for use, customer-to-bank Payment Initialization (PAIN)
message types are not; however, they are strongly recommended. Because
there is room for interpretation, it is expected that several PAIN
specifications will be published in SEPA countries.
Businesses, merchants, consumers and governments are also interested
in the development of SEPA. The European Associations of Corporate
Treasurers (EACT), TWIST, the European Central Bank, the European
Commission, the European Payments Council, the European Automated
Clearing House Association (EACHA), payments processors and
pan-European banking associations – European Banking Federation
European Association of Co-operative Banks
This section needs expansion. You can help by adding to it. (August 2017)
The different functionalities provided for by SEPA are divided into separate payment schemes, detailed below. SEPA Credit Transfer SEPA Credit Transfer (SCT) allows for the transfer of funds from one bank account to another. SEPA clearing rules require that payments made before the cutoff point on a working day, be credited to the recipients account within one working day. SEPA Instant Credit Transfer SEPA Instant Credit Transfer (SCT Inst) provides for instant crediting of a payees (less than ten seconds, initially, with a maximum of twenty seconds in exceptional circumstances). This scheme was launched in November 2017, and was at that time operational for end customers in eight euro zone countries, and is expected soon to be available in most euro zone countries and potentially in all SEPA countries. SEPA Direct Debit Direct debit functionality is provided by two separate schemes. The basic scheme, Core SDD, was launched on 2 November 2009, and is primarily targeted at consumers. Participation by banks offering SEPA payments is compulsory. In addition, there is a second scheme, B2B SDD, targeted towards business users. It requires a mandate be submitted to the bank by both the creditor and debtor. Among other differences, it does not allow the debtor to request a refund from its bank after its account has been debited. Participation in the scheme is optional. Coverage SEPA consists of 34 countries:
The 28 member states of the European Union, including
the 19 states that are in the Eurozone:
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain
the nine states that are not in the Eurozone:
Bulgaria, Croatia, the Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, United Kingdom.
The four member states of the European Free Trade Association
the three states having signed the
European Economic Area
Iceland, Liechtenstein, Norway.
the one EFTA member that has not joined the EEA, but instead has a series of bilateral agreements with the EU:
A few other countries with agreements with the EU:
Monaco, San Marino.
All parts of a country are normally part of SEPA. However, the following countries have special territories which are not part of SEPA:
Jurisdictions using the euro that are not in SEPA: Akrotiri and
Dhekelia, Kosovo, Montenegro,
Treaty of Rome
1999 Introduction of the euro as an electronic currency, including introduction of the RTGS system TARGET for large-value transfers.
2000 Lisbon Strategy: Meeting creates European Financial Services Action Plan.
2001 EC Regulation 2560/2001 harmonises fees for cross-border and domestic euro transactions.
2003 First Pan-European Automated Clearing House (PE-ACH) goes live; EC Regulation 2560/2001 comes into force for transactions up to €12,500.
2006 EC Regulation 2560/2001 increases ceiling on same-price euro transactions to €50,000.
2008 SEPA pan-European payment instruments become operational (parallel to domestic instruments) on 28 January
2009 Payment Services Directive (PSD) enacted in national laws by November.
2010 SEPA payments become dominant form of electronic payments.
2011 SEPA payments replace national payments in the Eurozone.
2016 Since 31 October 2016, payment service providers (PSPs) in non-euro countries are only able to collect euro-denominated payments using SEPA procedures. Non-euro schemes, such as the UK's Direct Debit, will continue without change.
2017 Starting 21 November 2017, instant SEPA payments of up to 15,000 euros within 10 seconds (optional participation for PSPs).
As of August 2014, 99.4% of credit transfers, 99.9% of direct debit
and 79.2% of card payments have been migrated to SEPA in the euro
The official progress report was published in March 2013.
In October 2010, the
European Central Bank
EU law Payment Services Directive European Payments Union ISO 11649 ISO 20022 Giro
^ a b "5. Report for Selected Countries and Subjects". International
Monetary Fund. 17 June 2011. Retrieved 10 July 2013.
^ "Human Development Report 2013" (PDF). UN. 2013. Retrieved 14 March
^ a b List of SEPA Scheme Countries
^ "Solution: SEPA, the single euro payments area". European Central
Bank. Archived from the original on 20 March 2008. Retrieved 28
^ "Agreement reached on cross-border banking". RTÉ News. 27 March
2007. Retrieved 28 January 2008.
^ "Joint statement by the
Official website SEPA on ECB website (and per-country links) European Payments Council (EPC), representing the European banking industry REGULATION (EU) No 260/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 March 2012 - establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009 Official Journal of the European Union, 30 March 2012 - European Regulation 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro SEPA Payments News & Views for Corporates
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