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SEPA - A Guide for Business Customers - A Guide for Business Customers SEPA Credit Transfer (SCT)...

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  • SEPA - A Guide for Business Customers

    SEPA Credit Transfer (SCT)

    SEPA Direct Debit Core Scheme (SDD Core)

    Version: 2 (effective 20th November 2016)

    Published: May 2016

  • SEPA Guide for Business Customers Version 2 .docx V2 May 2016 Page 2

    Table of contents

    1 PURPOSE OF THE DOCUMENT 3

    1.1 DOCUMENT HISTORY 4

    2 SEPA EXECUTIVE SUMMARY 5

    2.1 ABOUT SEPA 5

    2.2 SEPA CREDIT TRANSFER SCHEME 6

    2.3 SEPA DIRECT DEBIT CORE SCHEME (SDD) 7

    2.4 BIC & IBAN 9

    2.4.1 BIC 9

    2.4.2 IBAN 9

    3 PARTICIPATING IN THE SEPA DIRECT DEBIT SCHEME 10

    3.1 SEPA CREDITOR IDENTIFIER NUMBER (CI) 10

    3.2 CREDITOR IDENTIFIER INFORMATION 10

    3.3 CREDITORS OBLIGATIONS UNDER THE SCHEME 10

    4 ABOUT MANDATES 12

    4.1 THE SEPA MANDATE 13

    4.1.1 Sample SEPA Mandate 15

    4.2 PAPERLESS MANDATES - PHONE & INTERNET SIGN UP 16

    4.2.1 Guide to SEPA Direct Debit Phone Sign-Up 17

    4.2.2 Guide to SEPA Direct Debit Internet Sign-Up 18

    4.2.3 Confirmation letter 19

    4.3 CANCELLATION OF A MANDATE 20

    4.4 REQUESTS FOR COPY OF THE MANDATE 20

    5 MANDATE AMENDMENTS 21

    5.1 AMENDMENTS TO SEPA MANDATES CAN BE MADE FOR THE FOLLOWING REASONS: 21

    6 SEPA TRANSACTION/SEQUENCE TYPES 23

    7 SEPA FILE FORMATS 25

    8 PRE NOTIFICATION/ADVANCE NOTICE 26

    9 TIMELINE FOR COLLECTION OF DIRECT DEBITS 27

    10 R TRANSACTIONS 28

    11 CONSUMER RIGHTS & SEPA REGULATION 29

    12 APPENDICES 31

    12.1 THE UNIQUE MANDATE REFERENCE UMR 31

    12.2 AT-10 - THE CREDITORS REFERENCE OF THE DIRECT DEBIT TRANSACTION 31

    12.3 PROCESS STEPS IN THE COLLECTION OF DIRECT DEBITS 32

    12.4 GLOSSARY OF TERMS 33

  • SEPA Guide for Business Customers Version 2 .docx V2 May 2016 Page 3

    1 Purpose of the Document

    The purpose of this document is to provide information to business customers on the following SEPA

    payment schemes:

    SEPA Direct Debit Core (SDD)

    SEPA Credit Transfer (SCT)

    The information is provided as a guide only and should be used in conjunction with the SEPA Scheme

    Rulebooks and associated Implementation Guidelines published by EPC.

    The complete SEPA Scheme Rulebooks and associated Implementation Guidelines for SCTs and

    SDDs are available from the EPC Website, (www.epc-cep.eu) The Scheme Rulebooks are published

    in November each year, and any amendments may require this guide to be updated year on year.

    This document does not address each Banks process for SCTs and SDDs. Customers must

    engage with their own bank for information on SCT and SDD set up and processing. Creditors

    must also contact their own bank in relation to Rulebook Version 9.2 changes, effective

    November 2016, and particularly for details of the new submission times for SDD files.

    This document does not cover the optional SEPA B2B scheme (Business to Business scheme).

    Customer must contact their own bank for further information on the scheme.

    This document will be updated by Banking & Payments Federation Ireland (BPFI), as required and the

    most recent version will be published on BPFI website www.bpfi.ie. It is the users responsibility to

    ensure they are referring to the most up to date version of the guide.

    The document replaces the previous published SEPA Creditors Guide.

    Disclaimer

    While every effort has been made to ensure the accuracy of information included in this document, BPFI can accept no responsibility for errors contained herein. The information in this publication may change from time to time users are advised to refer to the latest available version.

    http://www.bpfi.ie/

  • SEPA Guide for Business Customers Version 2 .docx V2 May 2016 Page 4

    1.1 Document History

    Version Number Brief Description Date Published

    V1.0 SEPA A guide for Business Customers replaces the previous published SEPA Creditors Guide

    December 2015

    V2 Updated based on SDD Core Rule Book V9.2 effective date Nov 2016

    All Collections presented for the first time, on a recurrent basis or as a one-off Collection can be presented up to D-1 Inter-Bank Business Day (D-1)

    The use of the sequence type First (FRST) in a first of a recurrent series of Collections is no longer mandatory (i.e. a first Collection can be identified in the same way as a subsequent Collection with the sequence type RCUR)

    SMNDA

    The acronym SMNDA was used to indicate Same Mandate with a New Debtor Agent - the definition of the acronym SMNDA has been updated to indicate Same Mandate with a New Debtor Account.

    May 2016

  • SEPA Guide for Business Customers Version 2 .docx V2 May 2016 Page 5

    2 SEPA Executive Summary

    2.1 About SEPA

    The Single Euro Payments Area (SEPA) is a European-wide initiative to standardise the way retail

    electronic payments are made and processed in euro. Using SEPA, payments throughout Europe can

    be as fast, safe and efficient as when using national payment systems. SEPA enables customers to

    make payments (Direct Debits, Credit Transfers) to anyone located within the SEPA zone. The

    jurisdictional scope of the SEPA Schemes currently consists of the 28 EU Member States plus Iceland,

    Norway, Liechtenstein, Switzerland, Monaco and San Marino.

    SEPA live date was 1st February 2014, an extra transition period of six months was allowed

    and the final migration date to SEPA was 1st August 2014

    The EPC developed the SEPA payment schemes as defined in the SEPA Credit Transfer

    (SCT) and SEPA Direct Debit (SDD) Rulebooks. The rulebooks contain sets of rules and

    standards for the execution of SEPA payment transactions that have to be followed by

    adhering payment service providers (PSPs).

    The SEPA mandatory payment schemes are as follows all Banks/PSPs must participate in these

    payment schemes:

    SEPA Direct Debit Core (SDD) the scheme replaced the existing domestic legacy Direct

    Debit schemes throughout Europe

    SEPA Creditor Transfer (SCT) the scheme replaced the existing domestic retail Credit

    Transfer schemes throughout Europe

    Overview of SEPA payments:

    SEPA covers transactions in euro only

    IBAN & BICs are the account identifiers for all SEPA transactions cross border and

    domestic

    XML formats is used for SEPA file formats

    Returns/Rejects processing is an automated process

    Overview of SEPA processing:

    SEPA payments (one-off or bulk payment files) are submitted by customers to their bank

    Banks submits the files to Clearing & Settlement Mechanism (CSM) at various times during

    the day

    CSM processes the files and manages the settlement process. CSM issues output files to

    the banks for processing to customer accounts

    Banks process the output files and update their customer accounts

    Further information on SEPA is available on the European Payments Council website:

    http://www.europeanpaymentscouncil.eu/

  • SEPA Guide for Business Customers Version 2 .docx V2 May 2016 Page 6

    2.2 SEPA Credit Transfer Scheme

    The SEPA Credit Transfer Scheme facilitates the execution of Credit Transfers in euro between

    customer accounts located in SEPA. Credit Transfers can be single payments (one-off payments) or

    bulk payments e.g. payroll, supplier payments. The PSPs executing the credit transfer must formally

    adhere to the SCT Scheme. BPFI is the EPC appointed NASO (National Adherence Support

    Organisation) for Ireland.

    Glossary of terms

    The Originator: Customer who initiates the Credit Transfer instruction

    The Originator Bank: The Bank that receives the Credit Transfer instruction from the

    Originator and processes the payment instruction

    The Beneficiary Bank: The Bank that receives the Credit Transfer instruction from

    the Originator Bank and credits the account of the Beneficiary

    The Beneficiary: The customer identified in the Credit Transfer instruction who

    receives the funds by means of a credit to its account

    Provisions of the SCT scheme

    The following provisions are available through the SCT scheme:

    One-off payments or bulk payments e.g. payroll files are all processed via SEPA -

    payments can be made to any SEPA country

    Originator (payer), Beneficiary (payee) and their banks are identified using BIC and IBAN

    Beneficiary will receive funds within one business day of the payment being executed

    The full amount of a payment will always be received by the Beneficiary

    Transaction costs for cross border SEPA payments will be equal to the transaction costs for

    corresponding national payments

    Originator and Beneficiary can each only be charged by their own payment service provider

    More detailed remittance information can be included with a payment as up to 140 characters

    are permitted

    Rejects and Returns are automatically returned to the Originator

    Overview of the SCT process

    O

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