SEPA

SEPA stands for Single Euro Payments Area. It consists of 34 countries where SEPA payments instruments like SEPA Credit Transfer and SEPA Direct Debits are used for funds transfer.

Secrets to understand Payment Market Infrastructures – Sweden part 1

Is there a secret to easily understand payments systems in any country?  Do you know the payment market infrastructures of your country and how they are structured? This is the first of a series of videos where we will examine payment market infrastructures of a few countries in the world. And we begin with Sweden. …

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PSD2 and The New Generation of Third-Party Providers

The revised Payment Services Directive (PSD2) went live in January 2018 and is set to have a broad impact on the financial services industry across and beyond Europe. One main goal of the revised PSD2 is to encourage competition by allowing new players, the Third-Party Providers, to enter the European Single Market. The directive removes …

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International Bank Account Number

IBAN number: definition, structure and checker

The IBAN number or simply IBAN (International Bank Account Number) serves as the unique identifier for the bank account in SEPA payments. Debtor and Creditor accounts must be provided therein in IBAN formats. But contrary to what many believe, IBANs are not used everywhere in the world as we will see below. This article begins with …

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ISO 20022 and The SEPA payments messages elements

SEPA Payments Schemes, Instruments, Initiatives and Messages standards

Simply put, SEPA payments are pan-European payments instruments in Euro, created as results of the SEPA project whose aim is to harmonize standards and practices for electronic and cash payments across the SEPA area. The SEPA area consists of 34 countries out of which some do not use Euro as local currency. If you are …

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Image for Four Corner Model for the SDD Schemes

Main differences between SEPA Direct Debit Core and SEPA Direct Debit B2B Schemes

Before considering the differences between SEPA Direct Debit Core and SEPA Direct Debit B2B Schemes, it is worth reminding ourselves what a scheme is. The European Payments Council (EPC) defines a scheme as following: “A payment scheme is a set of rules which Payment Services Providers (PSPs) have agreed upon to execute transactions through a specific …

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Creditor-driven and Debtor-driven Mandate Flows for the SDD

There exists two direct debit models: the Creditor-driven Flow and the Debtor-driven Mandate Flow. The SDD Schemes are based on the first model, the CMF. This article will answer the following questions: What are the direct debit models? What are their main differences? A direct debit model essentially tells us how a mandate is issued …

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