SEPA: a single European payments market
Europe is preparing for a single European payments market. With this Single Euro Payments Area ("SEPA"), there will no longer be any difference between domestic payments and foreign payments in euros within Europe. From 28 January 2008 you can use a SEPA transfer to make payments in 31 European countries just as easily as within the Netherlands.
Clear and simple
At the moment every country in Europe has its own rules for payment processing. These rules stand in the way of a clear system of payment processing in Europe.
The introduction of the Single Euro Payments Area (SEPA), an initiative by the European banking community, will lead to the establishment of a single European payments market for payments in euros. This means that businesses and consumers throughout Europe will be able to send and receive payments in euros under the same conditions and with the same rights and obligations.
When is SEPA going to start?
The introduction of this European payments market is a gradual process:
What does this mean for you?
You will not see any great changes in 2008. The SEPA payment will be available alongside the existing products for domestic and foreign payments. Ultimately, the SEPA payment will replace the current Dutch payment instruments.
Benefits
- Send and receive monies in euros with standard conditions
- Cost savings as a result of more efficient payment processing: fewer accounts and clearer accounting processes
- Improved liquidity management as a result of fewer accounts
Conditions
- The use of IBAN and BIC is compulsory
- It is necessary to upgrade your accounting processes: for instance, you will need to adapt your customer systems and include your IBAN and BIC on all your stationery
