Single Euro Payments Area Credit Transfer Scheme goes live

From today (28 January) the new SEPA Credit Transfer (SCT) Scheme will enable euro credit transfers to be made within a maximum of three days, and without any deductions from the principal amount. The customers who will benefit most are those larger businesses for whom it will make cross-border trade easier, and UK consumers who make regular euro payments because they may, for example, maintain properties abroad.

Although the UK remains a non-euro country and the number of cross-border euro payments to and from the UK is relatively small, many UK–based businesses and a small number of consumers might benefit from this new scheme. A number of UK-based banks have already committed to joining the SCT Scheme from its launch: APACS estimates that they account for about 85% of the UK payments market, and this is expected to increase over time. Customers interested in the SCT Scheme should speak to their bank or building society. This initiative will not, however, impact those who only make or receive payments in sterling or other currencies like US dollars or Japanese yen.

SEPA also aims to harmonise technical standards used for plastic cards throughout Europe, reducing the complexity facing retailers who have card-accepting outlets in more than one country. SEPA will see EMV chip cards - already used in the UK – rolled out across Europe by the end of 2010, helping in the fight against card crime.

The next SEPA development will be the SEPA Direct Debit Scheme, which will enable direct debits to be made in euros on a SEPA-wide basis according to a common set of rules and timescales. This launch is dependent upon the national implementation of the Payment Services Directive into 27 EU Member States, which will be achieved by November 2009. The UK has already started the implementation process with HM Treasury issuing a consultation document in December 2007.

For more information on SEPA services, please contact your bank or visit europeanpaymentscouncil.eu.