SEPA
SEPA stands for the new Single Euro Payments Area.
The aim is to promote the single European market in payment transactions. Consumers can now make international transfers just as securely and easily as domestic transfers.
That is changing:
- Conversion of the account number and bank code to IBAN and BIC
- SEPA procedures can be used for both domestic and cross-border payments
- Shorter transfer times, e.g. transfer to the target account on the next working day
- Reduction of the intended use from max. 378 characters to 140 characters
- Better customer protection through SEPA direct debit
- Longer objection periods for SEPA direct debits
The countries in which SEPA applies include:
- Belgium, Bulgaria, Denmark, Germany, Estonia, Finland, France, Greece, Ireland, Iceland, Italy, Croatia, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mayotte, Miquelon, Monaco, Netherlands, Norway, Austria, Poland, Portugal, Romania, Saint-Pierre, Sweden, Switzerland, Slovakia, Slovenia, Spain, Czech Republic, Hungary, United Kingdom of Great Britain and Cyprus.
Schedule
- Already mandatory for all corporate clients and associations
Since the beginning of 2014, associations and corporate customers have only been able to make payment orders as SEPA transfers with IBAN and BIC
- Mandatory for all from 1.8.2014
Banks will continue to accept transfers in the old format until August 2014. The final SEPA changeover will then take place.
IBANs are now required for every transfer and BICs for transfers abroad.
- Transition until 1.2.2016
By 2016, banks will be able to provide consumers with services that automatically convert the account number and sort code into IBAN and BIC.
- As of 1.2.2016
For national and international SEPA orders, only the IBAN of the payee is now required (“IBAN-only”).
