SEPA - Single Euro Payments Area
Welcome to SEPA
The vision of a single payments area has become reality
Following the introduction of the SEPA Credit Transfer in 2008 and the SEPA Direct Debit in 2009, the legal obligation to support the SEPA Direct Debit from November 1, 2010 means that the single payments area has finally become reality in 16 euro countries, 14 additional countries of the European Economic Area as well as in Switzerland and Monaco. All providers of payment services in the EU Member States implemented this requirement within the specified timeframe. However, a distinction is made between an active and a passive participation. Active participation refers to both issuance and acceptance of SEPA Direct Debits; passive participation refers to acceptance of SEPA Direct Debits only.
It is now possible to debit accounts directly in a standard procedure and format for the first time across Europe. Two different SEPA Direct Debit procedures are available: The SEPA Core Direct Debit is similar to the German “Einzugsermächtigungsverfahren” and is used primarily between companies and private customers; the SEPA Business to Business Direct Debit (B2B) is designed solely for business customer transactions and is similar to the German “Abbuchungsauftragsverfahren”.
The national procedures retain their validity for the time being, but the European Commission is expected to stipulate a final date for using them shortly. As things currently stand, existing direct debit authorisations may not be used as SEPA mandates. It remains to be seen whether the German legislator will approve rules for simplifying the introduction of the SEPA Direct Debit.
As a plenary member of the European Payments Council (EPC) and a board member of the European Banking Association (EBA), WestLB actively supports the development and implementation of SEPA. Intensive meetings with our customers enable us to recognise their needs, which we then submit to the decision-making bodies. If you are planning to introduce the SEPA payment instruments, simply contact our product managers. They will be pleased to advise you in all relevant matters, from XML message formats to combi mandates and applying for a creditor ID with the Bundesbank.