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What does SEPA mean?
SEPA means Single Euro Payments Area. SEPA is a single euro payments area in which all payments are treated like national payments.

In what countries will SEPA be introduced?
Since January 1, 2008, all banks, companies and individuals are able to benefit from SEPA. The focus of SEPA is on the 13 countries of the eurozone which share the single currency already today. Other countries which belong to the European Union and the European Economic Area (EEA) also have the opportunity to join SEPA. This means that all countries of the European Union (27 countries) and three countries of the European Economic Area (Norway, Iceland and Liechtenstein) plus Switzerland will be able to apply the new SEPA procedures.

When did SEPA become reality?
SEPA became operative on January 28, 2008. From this date onwards, all banks offer “new” cross-border payments tools in addition to their “old” national payments products in the eurozone, which can be used for national and international transactions. SEPA is to be introduced in successive steps for all payments on a national and international level.

What is the Payment Services Directive?
The Payment Services Directive is the directive for payment services in the single European market of the EU. It is required to ensure legal security for the market participants especially for the SEPA direct debit. The Council of the European Union and the European Parliament adopted the PSD in March/April 2007. Now, the legislators of the member states have to transpose it into national law. The European Union has set a time limit for implementation until November 1, 2009.

What is the New Legal Framework (NLF)?
New regulations in the context of SEPA are called New Legal Framework. This will focus on the PSD which will then be integrated in national legislations.

Are there any consequences for the Electronic Banking products?
The current products need to be adapted in order to process the new SEPA XML format. In addition, data transmission should be examined and converted to faster transmission systems due to the storage requirement that will be increased by up to 300%.
WestLB’s CashLine Classic® and WestLB CashLine Web® applications will be SEPA-ready in the third quarter of 2007.

What changes will there be with regard to the data formats?
All SEPA data models use the standardised XML format ISO 20022. XML (Extensible Markup Language) is a standard for modelling semi-structured data in the form of a tree structure, which is used e.g. on the Internet. The format is versatile and enables the transport of additional information to enable expansions of the basic SEPA products (AOS), too. In the long term, the national formats are to be replaced by ISO 20022.

How long will the old payment formats continue to be supported?
A concrete exit date has not been set. However, in the light of the legal security which has now been achieved, consideration should be given to ending the national formats as soon as possible with a view to achieving a uniform payment area and for economic reasons.

Can the German direct debiting procedure still be used?
Yes. Following the transposition of the PSD into German law (in autumn 2009 at the latest), this also applies, of course, to the existing payments procedures. Thus, it is likely that the right to cancel debits under the direct debiting procedure will be extended for a longer period.

What form must the advance information on SEPA debits take?
According to the rule book, information to the debtor must be sent at the latest 14 days prior to debiting, stating the amount, the date of debiting and the schedule in the case of regular debits. Individual arrangements between debtor and recipient are, however, expressly allowed.

How can I test my SEPA payments?
WestLB will provide its customers with test windows in autumn 2007 and early 2008 in which the structure of their XML files can be tested with the help of our IT experts. Contact us for further details.

Is the design of the SEPA products final?
Version 2.2. of the rule books, which forms the basis for the launch in January 2008 and has been approved by the European Payments Council (EPC), will not be changed. However, extended versions will be developed by the EPC, which will include, for example, a direct debit instruction for corporate clients. The launch date for such developments has not yet been set.

What do I have to do to be SEPA-ready?
Two months ahead of the official SEPA-start, WestLB had already converted all WestLB accounts to the new system. Beginning on January 28, 2008, all WestLB customers were able to have payments credited to their accounts in the SEPA format and are thus SEPA-ready. In order to also actively send SEPA-payments, adaptations in the IT are necessary. Please contact us for further information!