As of February 1, 2014, bulk payments throughout Europe must be processed in accordance with the regulations for SEPA Credit Transfers and SEPA Direct Debits. The fundamental parameters of and the time frame for migration to the Single Euro Payments Area (SEPA) payment scheme were laid down with the coming into effect of the “regulation establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009” on March 31, 2012. From 2014, only the International Bank Account Number as a standardised account number used for domestic or cross-border SEPA payments will be a customer’s definitive identifier.
SEPA is an economic area comprising well over 500 million citizens and some 20 million businesses and institutions. They can now effect domestic or cross-border euro-denominated payments in the form of a SEPA Credit Transfer or a SEPA Direct Debit just as quickly, securely and conveniently as their existing national payments. But initially SEPA will also create an array of challenges for businesses and institutions. In particular, SEPA Direct Debit poses new processing challenges: direct debit issuers need a creditor identifier and are required to give the payer advance notice of their account being debited. In addition, the direct debit must be submitted to the bank within a specific time frame and must include a due date.
As one of Europe’s leading banks in cash management, Commerzbank played an active part in shaping SEPA right from the start through its committee work. Commerzbank regularly keeps companies and institutions abreast of all the latest developments by means of events, workshops and newsletters have a look at commerzbank.com/sepa. And Commerzbank does not limit this to merely informing them of the necessary regulatory amendments in the area of payments: SEPA can also be used as a strategic opportunity to optimise processes and structures in international cash and treasury management – including above and beyond euro bulk payments, which are the focus of SEPA. Commerzbank is here to help with its tailored “SEPA+” package.
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