SEPA creates a borderless payment system allowing efficient, safe and less expensive payments within the SEPA Zone. From 1st February 2014 all euro Direct Debit and Credit Transfer payments within the SEPA Zone must be SEPA Payments.
What are the benefits for your business?
The introduction of SEPA can result in improved liquidity and working capital management, reduced costs and improved access to new markets. The standards governing SEPA payments will enable faster payments, improve straight through processing (payment and reconciliation) and allow easier switching between bank service providers.
- One Euro account: You will no longer need to operate and manage local Euro accounts in each SEPA country.
- One payments and collections process: You may be able to centralize Accounts Payable and Accounts Receivable processes (Payment & Collection factories)
- One set of standard payment instruments: You will no longer need to deal with different national payment instruments and standards.
- One file format: The ISO 20022 XML format can be used with other payment types available through Danske Bank.
What changes will your business need to make?
Whilst SEPA offers many benefits to businesses and customers alike, there are also challenges to overcome. All Corporates and Businesses operating in Ireland will need to adjust their existing payment solutions, to facilitate SEPA adoption.
- Convert data and adjust systems to deal with new BIC/IBAN payment information and XML payment file formats.
- Adjust payment and collection processes to ensure compliance with the EU Regulation 260/2012.
Please refer to our SEPA - Migration Planning Factsheet for advice planning your transition to SEPA.
Contact our SEPA Implementation experts today - Our SEPA capabilities, experience and support services will ensure you plan for a smooth and controlled transition.