22 February 2013
SEPA is designed to harmonise domestic and cross border Euro payments for businesses and individuals making transacting within the SEPA zone simple, consistent, efficient and secure by harmonising cross border EURO payments and receipts.
SEPA represents 89% of transactions across 32 European countries. The 31st March sees the SEPA Regulation come into force. Technical standards for SEPA Credit Transfers (SCT) and SEPA Direct Debits (SDD) will become mandatory for the Euro area from 1st February 2014 and for the non-Euro area on 31st October 2016. If Corporate ERP systems are currently generating a domestic ACH format (for example) then there is a need to move to the SEPA standards. It will be necessary to put together a transitional strategy and plan to adopt SEPA standards including all the impacts on your business and systems.
One of the primary corporate benefits of SEPA is the ability to reduce the number of EU banking connections. This can be achieved through the single, unified, EU-wide process for transacting and settlement. Every one of the member 32 countries will be clearing their transactions in precisely the same manner through their banks with each other. Ideally, this means that we could have one ‘payment connection’ and one ‘receipt connection’ for Europe (and the UK).
BMS has put together a SEPA white paper and will be running half day seminars later in the year.
For further information please contact Howard Page on 07917 335305 firstname.lastname@example.org