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Understanding Business
Overview of SEPA
SEPA (Single Euro Payments Area) is an initiative of the European banking industry. It aims to create one single, integrated, standardised payments market in Europe.
The introduction of SEPA means that cross-border electronic payments in euro across the SEPA countries can be as quick, easy and inexpensive as payments at home.
There will be a number of benefits for both consumers and businesses alike, for example;
- Consumers will be able to pay by direct debit from their Irish current account for services provided by companies throughout Europe such as telephone, insurance and other utilities without having to set up a separate overseas current account.
- Businesses will be able to make all euro payment transactions in one standard format, within Ireland or cross-border from their Irish current account using SEPA payment instructions
There are three main SEPA products - SEPA Credit Transfer, SEPA Direct Debit and the SEPA Cards Framework.
The Table below provides a brief overview of the new SEPA payment products.
| SEPA Payment Product | Description | Current Status |
|---|---|---|
| SEPA Credit Transfer (SCT) Scheme | SEPA Credit Transfer facilitates cross-border payments in euro throughout the SEPA zone, quickly, securely and efficiently. | SEPA Credit Transfer was launched on 28th January 2008. |
| SEPA Direct Debit (SDD) Scheme | SEPA Direct Debits will make it possible to make cross-border direct debits in euro as securely and efficiently as direct debits at home. | SEPA Direct Debit product offering is due for launch by the European Banking Industry in November 2009. |
| SEPA Card Framework (SCF) | The SEPA Cards Framework (SCF) will ensure that card payments and cash withdrawals can be made easily, safely and efficiently throughout the SEPA zone. | The SEPA Card Framework was launched on 1st January 2008. |
Published Oct 2008