SEPA will lead to a common set of payment categories through
Rules for clean payments
Rules for direct debits
Framework for card payments
:
Clean payments A payment order initiated by the payer. SEPA has a standardised set of business rules in terms of content and format, in which IBAN and BIC are requirements. According to the EPC, the execution period for this type of payment may be up to four business days. In the coming EU directive (the PSD) this will be reduced to a maximum of two business days (comes into force in November 2009).
Direct debits SEPA has standardised direct debits in euro, within Euroland as well as cross-border. SEPA direct debits are initiated by the beneficiary. SEPA regulates the business rules and standards for payment processing between the payer, the beneficiary, and each party's bank. Starts in 2009.
Card payments SEPA has established a framework for card transactions which give clear instructions for how card payments and cash withdrawals are to be processed across the SEPA area. The aim is to be able to use the same card in other countries as you use in your home country. Pure domestic cards will no longer exist. Starts after 2010.
