SEPA, Is your Business Ready?
January 16, 2014 | News
What is SEPA?
SEPA (Single Euro Payments Area) aims to create an integrated pan-European payments market that will allow payments in Euros to be made and received in and between each of the 32 SEPA member countries simply, cheaply and efficiently, regardless of their location.
SEPA comes into full effect on 1 February 2014*, changing the way Euro electronic payments are processed across Europe. It will mean that you can make and receive payments seamlessly, collect a direct debit on any Euro account or make a credit transfer to any Euro account within SEPA.
What are the main changes that SEPA brings?
• From 1 February 2014*, existing national payment schemes will be closed down, following which euro electronic payments will be processed through new SEPA schemes.
• By that stage, all national direct debits and credit transfers must be SEPA-compliant. This will include everything from staff payroll to paying creditors or receiving a Euro electronic payment from customers within SEPA.
• National sort codes and account numbers will be replaced by an International Bank Account Number (IBAN) and a Bank Identifier Code (BIC).
• EU regulation 260/2012 means that all businesses must conform to the new SEPA standards prior to 1 February 2014.
What are the benefits to businesses?
• SEPA payment products and services offer businesses and individuals more ways in which to pay in Euros
• SEPA makes it simpler and cheaper to send or receive Euro payments
• SEPA will mean faster settlement and simplified processes which will improve cash-flow and potentially reduce costs
Sage ERP X3 and SEPA
Sage ERP X3 is fully SEPA compliant for SCT (SEPA Credit Transfer) and will be fully SEPA compliant for SDD (SEPA Direct Debit) by integrating a new mandate management in the business processes.
For more information on SEPA and how you can prepare, please contact us Pinnacle
Read Sage's latest blog on SEPA - Five key recommendations related to SEPA compliance
*Except for non-Euro Countries when the deadline will be 31 October 2016