The SEPA Credit Transfer (SCT) is the Pan European Credit Transfer scheme that has replaced domestic and cross border Euro Credit Transfers (CT) throughout the SEPA zone. It provides a consistent approach for making payments across Europe and makes these as easy to effect and receive as domestic ACH transactions.
About SEPA
SEPA represents a major step towards a true single European market. An initiative of the European Commission (EC), SEPA has replaced all domestic (legacy) Euro schemes throughout Europe. For businesses, SEPA creates a borderless system of payments that adds clarity, consistency and efficiency as transactions are subject to a uniform set of standards, rules and conditions and can circulate as easily, quickly, securely and efficiently as in national markets.
The SEPA End Date Regulation set a mandatory deadline of 1 February 2014 (SEPA End Date) for all legacy Euro transactions within the Eurozone to migrate to harmonised SEPA schemes for both Credit Transfers and Direct Debits. However, the European Commission, Parliament and Council endorsed an additional transition period which permitted the processing of non-SEPA compliant payments (legacy payments) alongside SEPA Credit Transfers and SEPA Direct Debit transactions for a period of up to six months after the SEPA End Date*.
Important Information on SCT:
• SCT requires ISO 20022 XML format in the Eurozone. (Please note that Member States may have waived this requirement until 1 February 2016.**)
• XML format is to be implemented in non-Eurozone countries by 31 October 2016. In the meantime, if you have questions concerning your current formats or need guidance to plan your XML readiness, please discuss with your HSBC Representative.
• SCT requires the Remitter to provide IBAN details of the Payees/Beneficiaries, but depending on country-specific derogation, BIC details may be required for up to 1 February 2016 for domestic transactions. For cross-border transactions, BIC details are required until 1 February 2016.
Steps towards SEPA implementation
• Ensure you obtain BIC/IBAN details from your Payees (e.g. suppliers).
• Add your BIC/IBAN details to your invoice for customers to use.
• Check that your back office or ERP (Enterprise Resource Planning) system is able to manage SEPA data.
• Plan for a testing phase in your implementation.
Contact HSBC
HSBC understands the opportunities and challenges that your business is facing with the advance of SEPA. This factsheet has been prepared for general guidance to business customers on our SEPA proposition. As ever, we would be very happy to answer any questions you may have or discuss any aspect in greater depth.
Please contact your HSBC Representative or visit our website: www.hsbcnet.com/sepa for more information.
34 SEPA COUNTRIES: Eurozone members of EU
Non-Eurozone members of EU
EEA members
Additional SEPA members
*For more information on the expected impact of the proposed transition period, please refer to the SMART (SEPA Migration Action Round Table) website: http://www.abe-eba.eu/smart---sepa-migration-action-round-table-n=smart-l=en.aspx ** For more information on the latest country derogation updates, please refer to the country factsheets on ECB’s website: www.ecb.int/paym/sepa/about/countries/html/index.en.html Please note that HSBC is not responsible for third party websites.
SEPA Credit Transfer
Austria Belgium Cyprus
Estonia Finland France
Germany Greece Ireland
Italy Latvia Luxembourg
Malta Netherlands Portugal
Slovakia Slovenia Spain
Bulgaria Croatia Czech Republic
Denmark Hungary Lithuania
Poland Romania Sweden
Iceland Liechtenstein Norway
Monaco Switzerland San Marino
www.hsbc.com/sepaFeatures, services and functionality may vary by country. Please confirm availability with your local HSBC Representative. HSBC Bank plc endeavours to ensure that the information in this document is correct and does not accept any liability for error or omission. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank plc.
Issued by HSBC Bank plc. We are a principal member of the HSBC Group, one of the world’s largest banking and financial services organisations with around 6,600 offices in 81 countries and territories. HSBC Bank plc, Customer Information: PO Box 6201, Coventry CV3 9HW.
HSBC Bank plcRegistered Office: 8 Canada Square, London E14 5HQRegistered in England - Number 14259Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority©HSBC Bank plc 2014. All Rights Reserved.AC20032
Features of SEPA Credit Transfers
* To make a payment, make sure you include the following items in the instruction:1) the IBAN of the account from which the payment should be made; 2) the amount of the payment;3) the IBAN of the account of the Beneficiary to which the payment is to be made; 4) the name of the Beneficiary to whom the payment is to be made; 5) the BIC of the Beneficiary Bank to which the payment is to be made (subject to country level derogation as applicable); 6) the Customer’s reference for the payment, if applicable; and 7) any other data or information required to be included under the SEPA Rulebook or requested by the Bank from time to time
Features SEPA Credit Transfer
Geographic zoneAt present, bank reachability is mandatory in the 18 Eurozone countries for banks that are members of Euro clearing and in addition many banks in the non-Eurozone countries are also currently reachable
Currency Euro
Bank details required BIC/IBAN*
DeductionPayment made in full with no deduction at any stage(Remitter and Beneficiary are charged separately by their respective banks)
Amount No limit
Format required ISO 20022 XML standard messaging
Submission timing
– SCT screen input via HSBCnet before 10.30 a.m. (CET) cut-off time are processed the same day: same day settlement (D+0). Later submissions after cut-off time are next day settlement (D+1) – SCT File Upload (XML submissions) via HSBCnet, HSBC Connect and SWIFTnet FileAct before 10.30 am (CET) cut-off time are processed the same day: same day settlement (D+0). Later submissions after cut-off time are next day settlement (D+1)
Remittance Information Up to 140 characters (not truncated)
Transmission of rejected transactions At latest on the day following the processing day
RecallsIn exceptional circ*mstances a recall of a payment can be requested up to 10 days after the settlement date – this is then either agreed or refused by the Beneficiary/Beneficiary Bank
Our Services
• A full XML offering which does not only cover the SEPA zone – Our XML offering covers 60 countries including SEPA and our SEPA experts can advise you on technical aspects of the End Date Regulation, including value added services on format conversion and data enrichment solutions.
• BIC/IBAN conversion – We can advise you on options regarding the conversion of Basic Bank Account Number (BBAN) to Bank Identifier Code (BIC) and International Bank Account Number (IBAN), BIC/IBAN validation and BIC derivation from the IBAN.
• A range of SEPA reports – We provide you with improved reporting information in XML and non-XML formats to make reconciliation easier.
SEPA Opportunities
• Enter new markets – SCT allows you to make payments to suppliers and receive payments from customers in Euros from anywhere in the SEPA zone.
• Benefit from standardisation and error reduction: a single format for the entire SEPA zone based on the ISO 20022 XML simplifies multi country payments.
• Simplify reconciliation processes with up to 140 characters of narrative information.
• Consolidate redundant low volume Euro bank accounts from several countries into fewer locations.
• Centralise your internal operations and transactions into one point, for example to a Payment Factory or Shared Service Centre.
• Assess Euro flows to leverage SEPA payments instead of high value payments where possible (e.g. trade invoices).
• Forecast your cashflow and manage internally generated liquidity more efficiently for reduction in bank debt with guaranteed next day settlement.
Why choose HSBC to help you implement SEPA Credit Transfers?
HSBC’s presence in Europe gives us a real advantage in providing a coordinated delivery of SEPA. We can offer you the right solution and expertise:
• A network of offices across Europe, with extensive payments capabilities – We can help you manage and centralise payments from many locations across Europe.
• Thought Leadership and Expertise – We can keep you informed on the latest SEPA market news and talk to you about what this means for your business.
• State of The Art Technical Capabilities – We have invested heavily in SEPA compliant payment systems and can deliver payments through a wide range of our award winning electronic channels.
To find out more about SEPA speak to your Bank Representative or go to www.hsbcnet.com/sepa
