The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.
The SEPA end date regulation means that banks in the participating countries are no longer allowed to offer private individuals and companies own national variants for payments, transfers and direct debits in euro. Only SEPA payments and SEPA Direct Debit are allowed.
In euro countries, the regulation applies since 1st February 2014, but in countries with other currencies than euro, the requirement will come into force on 31st October 2016.
This means that from 31st October 2016, companies have to manage all euro payments to or from their bank or clearing house as SEPA payments (in the format ISO 20022 XML).
Many financial systems do not support the SEPA format. For this reason, Pagero has developed a function for automatic file conversion to and from the SEPA format in our payment service Pagero Payment Server (PPS).
With PPS, you create your payment-, salary-/wage- and direct debit files in the company’s financial system as usual. Then they are transferred to PPS for signing before they are sent to your bank or clearing house. Before being delivered to the bank or clearing house, the files are automatically converted to the SEPA format. You can also create SEPA files manually in PPS. Inbound SEPA files are converted to the Swedish clearing house’s format before they are delivered to you. You do not need to make any changes to your existing routines.
Please contact us for more information!
Key Account Manager Payment Solutions
Tel: +46 (0) 31 730 88 61