SEPA regulations, what does it mean for companies?
Posted: Mon Jan 06, 2025 8:33 am
SEPA (Single Euro Payment Area) is the Single Euro Payments Area , which the 28 member countries of the European Union, as well as Iceland, Liechtenstein, Norway, Switzerland and Monaco have signed up to. Thanks to the SEPA initiative, individuals and companies in all these countries will be able to make transfers quickly, safely and on equal terms. But what does the SEPA regulation mean for companies?
What is the SEPA regulation?
SEPA was introduced with the aim of eliminating the differences between domestic and cross -border payments. This affects three very common banking operations:
Until SEPA was implemented, direct debits, now called SEPA Direct Debits, were regulated within each country. And in each case a different coding was applied. From now on, the traditional 20-digit account numbers will be replaced by the International Bank Account Number (IBAN) and the Bank Identifier Code (BIC).
As regards transfers, their adaptation to the SEPA regulations allows for one-off and massive payments. This means that we can group all the invoices we have pending payment malaysia number data in a single document and give the order to the bank to execute the payment, without having to go through invoice by invoice. The maximum payment period for these operations is one business day .
What does the SEPA regulation mean for companies?
1. Obligation to sign a mandate
SEPA direct debits (formerly direct debits) are divided into two types:
SEPA Direct Debit B2C or CORE basic operations for collecting payments from consumers, businesses and self-employed workers. The COR1 scheme disappeared in November 2016.
SEPA Direct Debit B2B: where the debtor and creditor are companies or self-employed persons. These operations are more agile and secure.
A SEPA direct debit requires an agreement between the creditor and the debtor. Through this agreement, the debtor grants the creditor an authorisation to charge funds against an account in his bank account. This authorisation is known as a “mandate”.
It is mandatory that this order be signed by the debtor in order to charge direct debits. Until the SEPA regulations came into force, a written contract could have legal validity. From now on, the company must have a mandate to make direct debit charges.
2. Reduction of payment deadlines
Direct debits to be issued must be submitted to the issuing bank in advance of the collection date. Until now, in the submission periods for SEPA CORE direct debits we had to differentiate whether it was the first receipt , a recurring payment or the last in a series. For example, in a mortgage loan, the first instalment, the following ones and the final one.
Since November 2016, there has been a single deadline for submitting SEPA CORE direct debits. Previously, the company's bank had to notify the customer's bank of the collection of the direct debit or a remittance between 5 and 3 days before the charge was made. From now on, this can only be done one day before the charge .
What is the SEPA regulation?
SEPA was introduced with the aim of eliminating the differences between domestic and cross -border payments. This affects three very common banking operations:
Until SEPA was implemented, direct debits, now called SEPA Direct Debits, were regulated within each country. And in each case a different coding was applied. From now on, the traditional 20-digit account numbers will be replaced by the International Bank Account Number (IBAN) and the Bank Identifier Code (BIC).
As regards transfers, their adaptation to the SEPA regulations allows for one-off and massive payments. This means that we can group all the invoices we have pending payment malaysia number data in a single document and give the order to the bank to execute the payment, without having to go through invoice by invoice. The maximum payment period for these operations is one business day .
What does the SEPA regulation mean for companies?
1. Obligation to sign a mandate
SEPA direct debits (formerly direct debits) are divided into two types:
SEPA Direct Debit B2C or CORE basic operations for collecting payments from consumers, businesses and self-employed workers. The COR1 scheme disappeared in November 2016.
SEPA Direct Debit B2B: where the debtor and creditor are companies or self-employed persons. These operations are more agile and secure.
A SEPA direct debit requires an agreement between the creditor and the debtor. Through this agreement, the debtor grants the creditor an authorisation to charge funds against an account in his bank account. This authorisation is known as a “mandate”.
It is mandatory that this order be signed by the debtor in order to charge direct debits. Until the SEPA regulations came into force, a written contract could have legal validity. From now on, the company must have a mandate to make direct debit charges.
2. Reduction of payment deadlines
Direct debits to be issued must be submitted to the issuing bank in advance of the collection date. Until now, in the submission periods for SEPA CORE direct debits we had to differentiate whether it was the first receipt , a recurring payment or the last in a series. For example, in a mortgage loan, the first instalment, the following ones and the final one.
Since November 2016, there has been a single deadline for submitting SEPA CORE direct debits. Previously, the company's bank had to notify the customer's bank of the collection of the direct debit or a remittance between 5 and 3 days before the charge was made. From now on, this can only be done one day before the charge .