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SEPA - Single Euro Payments Area

Single Euro Payments Area (SEPA) is an EU initiative for payment integration, which aims to simplify transfers in Euro between citizens, businesses and public authorities.

Secure payment in Euro

SEPA streamlines and simplifies the payment process of goods in Europe as safely and quickly and we are used to when conducting national payments.

Bank transfers throughout the euro area

With SEPAit became just as easy to make electronic payments in the euro area as it is paying in cash. With SEPA you can therefore quickly and safely make bank transfers anywhere in the euro area.

Modifications for SEPA

From October 31, 2016, there are new rules for SEPA payments for countries outside the euro area. In the European Union legislative act of SEPA, there is a timetable for dismantling national solutions for payments and direct debits in euros. Now it is time for the countries outside the euro area.

In relation to the new rules, you should consider the following:

  • The BIC (Bank Identifier Code) is no longer required for SEPA payments across borders. BIC can however still be specified in the payment order
  • Your company should only use the IBAN of the destination account when making payments through SEPA
  • All payment files that will be sent through SEPA transfers from EU countries (plus Iceland, Norway and Liechtenstein) must be submitted in the ISO 20022 XML format
  • It is only possible to make SEPA transfer to the beneficiary account's IBAN (International Bank Account Number)

Are you prepared for the changes in SEPA?:

  • Make sure that your ERP system supports the ISO 20022 XML format
  • Be certain that you have the bank account numbers in IBAN format on suppliers in the EEA countries. EEA includes the EU countries plus Norway, Iceland, Switzerland and Liechtenstein.
  • Make sure that your bank account information for outgoing invoices in euro updated
  • You should ensure that your invoices in euros, contracts etc. contains the information required by the bank, which means your company's own IBAN (International Bank Account Number)
  • It may be advantageous to switch to ISO 20022 XML format for all payment types associated with the new SEPA requirements.
  • In relation to the new SEPA requirements it may be a good idea to change the reconciliation process
  • Make sure that the invoices send by your partners contains IBAN (International Bank Account Number)


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