About SEPA
SEPA (Single Euro Payments Area) is a single euro
payment area where all cashless retail euro payments are treated as domestic
payments, regardless of the place of residence of a payer and a receiver.
Currently SEPA covers all EU Member States, as well as Norway, Iceland,
Lichtenstein and Switzerland. Private customers, companies and other economic
entities may send and receive domestic and cross-border euro payments under the
same conditions, rights and obligations. SEPA enables customers to make cashless
euro payments to any receiver from a single bank account and using a single set
of common payment instruments.
The main objective of SEPA is to encourage European
integration by creating a competitive and modern euro area retail payment market
ensuring a higher level of services, more advanced instruments and cheaper ways
to make payments.
SEPA coordination and implementation
The SEPA initiative is coordinated by the European Payments
Council (EPC). The project is also supported by the European Commission and the
European Central Bank. The implementation of SEPA is divided into three stages.
During the first stage – the design stage – payment schemes and infrastructure
principles were developed. From the middle of 2006 to the end of 2007, payment
instruments were developed, standards and infrastructure were tested and the
interested parties completed the preparations. The last stage started in the
beginning of 2008; on 28 January SEPA credit transfers were launched in the
European Union. During this stage, national payment schemes are used jointly
with the new SEPA credit transfer scheme. It is planned that by the end of 2010
SEPA payment instruments will largely replace the payment instruments currently
used in national markets.
Payment instruments offered by SEPA
SEPA credit transfers: SEPA-wide cashless euro payments
initiated by the payer, where no limit on the value of the payment is set and
the whole amount of the payment reaches the receiver in three business days.
IBAN and BIC are used as account identifiers.
SEPA direct debits: cashless euro payment transfers initiated
by the receiver covering recurrent and one-off SEPA-wide payments. Maximum
settlement time is five business days for the first payment and two business
days for the next ones. IBAN and BIC are used as account identifiers.
A special business-to-business SEPA direct debit scheme (B2B)
is also being developed.
SEPA card payments: cardholders and merchants may make and
receive card payments all over the euro area in their usual way. One card may be
used for settlements in the whole euro area.
SEPA benefits to service providers and consumers
Over time the standardized payment instruments offered by
SEPA will convert the euro area to an integrated market where all banks
operating within it will be able to offer their services. A larger selection of
service providers and thus a stronger competition will ensure a high quality of
services and optimal fees. SEPA payment instruments will be accessible in all
countries that joined this initiative, therefore, the customers will need only
one bank account, and it will be possible to use a single payment card
throughout the euro area for making all euro payments. Common requirements,
transparent service fees, strict money transfer time limits will ensure a
transparent and straightforward payment processing.
SEPA implementation in Lithuania
Following the initiative of the Bank of Lithuania, domestic commercial banks, foreign bank branches, the Association of Lithuanian Banks together with the Bank of Lithuania formed the SEPA Coordination Committee. The Committee prepared and approved the Lithuanian SEPA Migration Plan. At the moment, the main goal of the Committee is to ensure implementation of the Plan until SEPA payment instruments largely replace the payment instruments currently used in national markets.
Banks intending to process SEPA credit transfers have to sign
a SEPA credit transfer agreement. According to the information of the
Association of Lithuanian Banks, this agreement has been already signed by:
AB "Swedbank";
AB bankas “Snoras”;
AB DnB NORD;
Nordea Bank Finland Plc Lithuania branch;
AB Parex bankas;
AB Sampo bankas;
AB SEB bankas;
AB Ðiauliø bankas;
AS “UniCredit Bank” Lithuania branch.
The following banks are currently offering a possibility to
initiate SEPA credit transfers by bringing a paper order to a bank’s branch or
by connecting to the online banking system:
AB "Swedbank";
AB SEB bankas.
The possibility to receive SEPA credit transfers is offered
by the following banks:
AB "Swedbank";
AB bankas “Snoras”;
AB DnB NORD;
Nordea Bank Finland Plc Lithuania branch;
AB Parex bankas;
AB Sampo bankas;
AB SEB bankas;
AB Ðiauliø bankas.
The article was prepared according to the information by the European Central
Bank, the European Payments Council and the Association of Lithuanian Banks.
More information about the SEPA project is available here:
Single Euro Payments Area. ECB, 2006. Publication in Lithuanian (pdf):
www.ecb.int/pub/pdf/other/sepa_brochure_2006lt.pdf
Single euro payments area, European Central Bank:
http://www.ecb.int/paym/sepa/html/index.en.html
European Payments Council: http://www.europeanpaymentscouncil.eu/
SEPA, European Commission:
http://ec.europa.eu/internal_market/payments/sepa/index_en.htm
