January 30, 2014
The German SEPA Council recently agreed to the proposal of the European Commission to extend the migration period by up to six months. Our 17th newsletter informs you about the full details for Germany.
January 10, 2014
Important message regarding Sepa migration end date
October 16, 2013
Deutsche Bank launches On-Behalf-Of Programme
October 08, 2013
The Treasurer: Secret Weapons – POBO and COBO, by Michael Turner
April 03, 2013
TMI: Planning for SEPA Migration, with Dieter Stynen
April 02, 2013
TMI: Sunshine through the Clouds, quoting Andrew P. Reid
Single European Payments AreaSEPA (short for "Single Euro Payments Area") is essentially a region of 34 European countries that constitutes a single currency payment area. This standardisation initiative has entailed changes in payment transactions for corporates and consumers and, since February 1 2014, SEPA Credit Transfers and SEPA Direct Debits have replaced previous national payment methods.
The objective has been to transform the euro payments landscape into a borderless, harmonised area. Cashless payments, such as credit transfers and direct debits, made in euros between European countries are now as simple, fast and cost-effective as domestic payments.
For credit transfers, SEPA was implemented in January 2008. Whereas national payment schemes previously differed considerably, the SEPA Credit Transfer instrument has allowed companies and consumers to make euro credit transfers across Europe under identical terms and conditions. A similar simplification process was implemented for direct debit payments in November 2009; an entirely new feature, as no cross-border direct debit instrument existed previously. In December 2011, European law makers agreed on a SEPA migration end-date of February 1 2014. Under this directive, SEPA is now a regulatory requirement.
As advised in its press release of January 9 2014, concerning the SEPA migration end-date for corporate clients, the European Commission proposed keeping the end-date unchanged, but allowing an extra transition period of up to six months, to August 1 2014. During this grace period, credit transfers and direct debit payments that differ from the ISO 20022 XML SEPA format can still be accepted and processed by Payment Service Providers and legacy clearing/payment schemes.
Consequently, Deutsche Bank will continue to accept and process electronically submitted credit transfers and direct debits in their legacy format in all its booking locations, after the SEPA Migration end-date of February 1, 2014. The legal basis for processing such payments will continue to be the terms and conditions in place before January 31, 2014. The additional transition period in euro countries can vary from country to country, and differs for Deutsche Bank booking locations from six weeks up to six months. Please refer to the detailed country-by-country overviews as provided by the European Central Bank (ECB) and Euro Banking Association (EBA).
The SEPA Council in Germany has decided to exclude direct debits under the collection authorisation procedure (Abbuchungsauftragsverfahren) from this transition period. Therefore, as of February 1 2014, Deutsche Bank no longer processes such orders.
For corporate clients, SEPA migration has meant a change in their existing processes. Regardless of whether your remit for processing payments is exclusively national or international, SEPA applies to all payment transactions and thus the capacity of your business.
The slow pace of migration from existing credit transfers and direct debits to SEPA Credit Transfers (SCT) and SEPA Direct Debits (SDD) – amongst small- and medium-sized enterprises (SME) in particular – led the European Commission to implement a one-off transition period of six months, until August 1, 2014. Clients who envisage being unable to achieve full SEPA readiness within this timeframe should get in touch with their contact at Deutsche Bank.
As the leading euro clearer 2 and an award-winning cash management service provider to corporates and financial institutions globally, you can count on Deutsche Bank’s experience and commitment to the payments business to support you through this transition.
Reducing costs and minimising risks within transaction processing are issues of growing importance for companies of all sizes; meaning the trend towards standardisation, automation and centralisation will continue unabated.
An integrated payments landscape in Europe will help achieve these objectives in several ways. While the benefits from SEPA will vary between companies (and will depend on a number of specific factors, such as the company’s structure), general benefits can include:
Deutsche Bank recommends that its clients persist with their SEPA migration projects and finalise them as soon as possible. Clients who envisage being unable to achieve full SEPA readiness within this timeframe should get in touch with their regular contact at Deutsche Bank.
Should you have any questions or require additional information, please contact your Cash Management Product Specialist or Relationship Manager. Alternatively, please send an email to firstname.lastname@example.org