SEPA Update

New EU legislation on payment services brought into effect by Minister for Finance to deliver greater protection for consumers and businesses.
article added on Oct 06 2009

The Minister for Finance, Mr Brian Lenihan, T.D., has signed regulations to transpose the Payment Services Directive.

The European Communities (Payment Services) Regulations 2009 (S.I. No. 383 of 2009) will apply from 1 November 2009 and will regulate the provision of specific payment services to all users, with specific rights for consumers and micro-enterprises (broadly, firms with a staff of less than 10 people and a turnover of less than .2 million). Payment services covered include credit transfers, direct debits, standing orders, money remittance, debit and credit card transactions, and certain services provided through mobile phones or other digital and IT devices.

The Minister said, .these regulations provide a new, comprehensive regulatory framework for the provision of payment services, whether in euro or in another Member State.s currency, in Ireland and throughout the European Union..

Benefits for payment service users

The regulations set out the respective rights and obligations for the users and providers of payment services, including:

- electronic credit transfers that do not involve any currency conversion must be carried out at the latest by the end of the next business day from January 2012. Until then, a maximum execution time of three business days applies. In addition, parties may agree on an extra business day for paper-initiated payment transactions
- when a payment is credited to an account, a recipient will have full and immediate use of the monies
- enhanced customer protection through the provision of standardised information on payment services and clear rules on refund where a transaction is wrongly executed and
- the Directive provides a legal basis for consumers to live and work throughout the EU and to manage all their finances from an existing euro account within the framework of the Single Euro Payments Area.

The Financial Regulator will be responsible for regulating the provision of payment services in Ireland and consumers and micro-enterprises will be able to bring complaints to and seek redress from the Financial Services Ombudsman for breaches of obligations arising under the Regulations.

A new type of payment service provider

Payment services are currently provided by, amongst others, banks, building societies, credit unions and money transmitters. The Payment Services Directive introduces a new category of provider known as a payment institution, which may be authorised to provide payment services within the scope of the Directive in conjunction with existing providers of such services, such as banks, and establishes harmonised EU rules for their authorisation and supervision. The Directive, therefore, lays down the framework for the future development of the payments industry in the European Union.

Click here for further detail

The European banking industry confirms its commitment to the Single Euro Payments Area.
article added on Dec 09 2009

EPC Launches the two SEPA Direct Debit Schemes in November 2009.

"On 31 March 2009 the EPC Plenary the decision-making body of the European Payments Council decided that as of 1 May 2009 it will be possible for banks to sign up for participation in the SEPA Core Direct Debit Scheme and / or the SEPA Business to Business Direct Debit Scheme. Banks will therefore be able to start delivering euro direct debit services as of 2 November 2009.

The introduction of the two SEPA Direct Debit Schemes demonstrates the continued commitment of the European banking industry to the creation of one domestic euro payments market and its ability to deliver on time the euro payment schemes that are the foundation of SEPA. SEPA Direct Debit services offer citizens, companies and public administrations a new and unique opportunity to make euro direct debit payments within and across 31 European countries', comments EPC Chair Gerard Hartsink.
Prior to yesterday's confirmation of the SEPA Direct Debit launch date, the EPC had emphasized the need for certainty as regards the acceptability of a multilateral inter-bank fee arrangement for SDD transactions in the long term. In a joint statement on 24 March 2009 the European Commission and the European Central Bank clarified their position on such an inter-bank fee arrangement applicable to SEPA Direct Debit transactions after October 2012. The EPC recognizes that the principles outlined in the joint statement of the regulators will affect the SEPA banking communities differently due to the fact that banks' existing direct debit business models vary from country to country. This means that some communities are confronted with the obligation to adapt their current direct debit business model significantly as of November 2012.
National and European public authorities must now implement those legal provisions that will allow banks to finalize SEPA implementation projects and will enable bank customers to fully exploit the benefits of the SEPA Direct Debit. It is very important that national governments complete transposition of the EU Payment Services Directive (PSD) by 1 November 2009 the latest. The PSD provides the harmonized legal environment needed for SEPA-wide operation of the SEPA Direct Debit Schemes. In addition, EU Member States must, where necessary, create legislative solutions to ensure the continued legal validity of existing mandates under the SEPA Direct Debit Scheme.

The SEPA Direct Debit Schemes provide a fast, secure and convenient means of making single or recurrent euro payments. The SEPA Direct Debit Schemes allow customers for the first time ever to make both domestic and cross-border euro direct debit payments throughout the 31 SEPA countries. The EPC invites major billers such as tax authorities, insurers, publishers and telecommunication companies, for example, to take advantage of SEPA Direct Debit services and to make this new means of bill payment available to consumers"
Gerard Hartsink, EPC Chair

Click here for further detail or to download a copy of the EPC's 'Short Cut to the SEPA Direct Debit Schemes'.

No SEPA related events listed