SEPA

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For more information on SEPA, you may access the following links:

Central Bank of Malta

European Payments Council

European Central Bank

European Commission

Terms and Conditions

Payments Tariff

1. What does SEPA stand for?

SEPA is the abbreviation for the Single Euro Payments Area.

2. What are the objectives of SEPA?

SEPA is an initiative to establish a truly integrated European payments landscape where euro payments are subject to a uniform set of standards, rules and conditions and can circulate as easily, quickly, securely and efficiently as in national markets today.

3. What are the benefits of SEPA?

The implementation of SEPA will allow businesses and consumers to fully reap the benefits of a common currency and market that have been established within the boundaries of the European Union.

4. What important changes will SEPA bring?

New payment instruments (credit transfer and a pan-European debit card) will be introduced by 28^th January 2008.

International Bank Account Number (IBAN) and Bank Identifier Code (BIC) will be used exclusively as beneficiary identifiers. This information can be found on your Bank Statement however you can always contact us on 2380 2380 for further details
A consistent clearing format will be adopted.
Payments will be fully transparent and will have a greater capacity for payment information

The introduction of a SEPA Direct Debit is expected in 2009.

While banks need to develop these new products and functionalities, the existing payment products need to be supported. Banks will need to comply with requirements defined by new European legislation and self-regulatory documents of the European Payments Council.

5. What area does SEPA cover?

SEPA will be delivered as a priority within the euro area, i.e; Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain and Slovenia. As Malta and Cyprus have joined the euro area on 1st January 2008 they also form part of SEPA. However there will be opportunities for banks outside the euro area to implement SEPA as well including the whole of the EU and Iceland, Liechtenstein, Norway and Switzerland. Ultimately, the payments landscape within is expected to become standardised, consistent and harmonised.

6. What currencies are covered under SEPA?

SEPA covers euro transactions only.

7. Who is affected by SEPA and what are the benefits?

SEPA will bring benefits to:

Consumers: Approx 500m
Corporates: Over 25m
Banks: Approx 9,000.

SEPA will mean that changes will need to be made to:

Cash machines
Point of sale terminals

Corporate clients will be able to reap many benefits from SEPA, including:

Lower charges across the payments landscape in Europe when method chosen by ordering customer is automated
Higher automation levels and improved exception handling
Opportunity to review account structures and possibly streamline them
Stepping stone to improved liquidity management
Potential to use one platform for all euro payments
Usage of one single file in a common format to receive and send payments.

8. When will SEPA happen?

From 28^th January 2008. Over time, banks’ clients are expected to migrate to the new instruments. After a transition period, the old schemes and instruments are expected to cease.

9. Who is responsible for the implementation of SEPA?

SEPA needs to be implemented by banks, national central banks, payment associations and public authorities in each country in the euro area. But SEPA can not happen and the benefits can not be enjoyed without the involvement of banks’ corporate and financial institution clients.

10. Where can I obtain more information about SEPA?

For further information, please contact your HSBC Relationship Manager who will be able to assist you.