SEPA
SEPA: A single European payments market
All countries that have adopted the euro are taking steps to create a single European payments market. Those countries are sometimes jointly referred to as SEPA, short for ‘Single Euro Payments Area’, in which payments within and between European countries will be standardised and therefore easier.
SEPA will extend the convenience of paying by euro in the euro countries to cashless payments, for instance funds transfers via internet banking and direct debits. An international bank account number (IBAN) will replace the Dutch account number and there is a new standard for all debit cards (EMV).
What does SEPA mean for you?
All organisations need to prepare to switch to SEPA, even if you do not have any activities abroad yet. European payment instruments will be standard and payment terminals have to be ready for the new debit cards. Direct debits and funds transfers are also set to change. Typical Dutch forms of payments such as the giro collection form and iDEAL will continue to be used but will be adapted to ensure they are SEPA-compliant. SEPA may also require you to adapt your accounting processes or your accounting software.
SEPA: from when?
The European countries and banks have already been working for several years on the changes entailed by a single payments market. Rabobank clients can already make payments quickly and economically in the euro area. No final date has yet been set for all SEPA countries to use European payment formats only. You can follow developments in this field on www.rabobank.com/sepa.
The advantages of a single European payments market
- Easy payments in Europe
- Safer and more efficient payment transactions
- Uniform rules for value dating and processing times, etc.
- Fewer accounts required for payments and receipts in Europe
