Single Euro Payments Area (SEPA)
What is SEPA?
The Single Euro Payments Area (SEPA) is making euro payments faster, safer and more efficient within the 34 EU countries. It enables customers to make cashless payments to anyone within the EU.
The SEPA process began in 1999 and is now in the final migration stage. Since February 2014 credit transfers and direct debits within the EU should be carried out using the following standards, a six month transition period was introduced. For niche products with specific characteristics the time scale is February 2016 with a longer transition period. By 31st October 2016 all EU state members with non-euro currencies must adhere to these standards set for credit transfers and direct debits in euros.
There are 3 ways of using SEPA:
- SEPA credit transfer – A single way to transfer funds nationally or anywhere within the EU.
- SEPA direct debit – Now charges can be made directly to an account in one EU country for services provided by a company based in another country.
- SEPA for cards – Customers can conveniently use the same cards they use for national purchases, anywhere in Europe. Merchants will accept all cards making the payment process easier and more attractive.
Details required for SEPA:
The International Bank Account Number (IBAN) identifies an account anywhere in the world. With a maximum of 34 digits it includes the following, 2 digits indicating the country code, 2 check digits, 30 digits (maximum) account identification specific for each country. Spanish IBAN example : ES62 0081 4278 1234 2598 1072 UK example: GB22 LOYD 3524 1628 7011 42
The Bank Identifier Code (BIC) will be phased out for payments by February 2016.
All payments cards will be migrated from magnetic strips to EMV (Europay, Mastercard and Visa) chip, there is currently no date for completion for this.
For information and advice relating to money transfers please contact us.
Comments 1
Nicola Tait
To calculate the IBAN number use the quick tool at the bottom of this link http://www.ibancalculator.com/