SEPA Maatschappelijk overleg betreffende het Betaalverkeer Débat sociétal sur les moyens de...

SEPA

Maatschappelijk overleg betreffende het BetaalverkeerDébat sociétal sur les moyens de paiement

Nationale Bank van BelgiëBanque nationale de Belgique

03/05/2012KoepelorganisatiesFédérations

Jan VermeulenAxelle Waterkeyn

SEPA info session federations - 3 may 20122 / 44

Agenda

► What is SEPA (JV)► Status of SEPA (AW)

● in Belgium● in Europe

► Legal framework (JV)● New Regulation on end-dates for SEPA migration

► Lessons learnt from Electrabel, the early mover to SDD (AW)

► Next steps and questions (JV)


What is SEPA?


SEPA: objective EFTA

EU27

Eurozone

€ payments within 32 countries* 99 % of all our non-cash payments are affected impact SEPA > introduction € cash

* 32 countries: EU + Norway, Liechtenstein, Iceland, Switzerland & Monaco


SEPA: Major players

EPC


SEPA Payment instruments

01/2008 11/2009

SEPA credit transfer

Public authorities as first moversFollowed by big billers

SEPA Direct Debit

STOP! National

CT

National DD

Technical, contractual and business standards

SEPA cards

02/2014

First big biller migrates end 11/2011


PE-ACHPayment system

SEPA benefits

http://www.bancobpi.pt/pagina.asp?s=1&opt=s


►National Bank of Belgium ● "Maatschappelijk overleg Betaalverkeer (MoB)"● "Débat sociétal sur les moyens de paiement"● "Societal debate on the future of payment means"

SEPA working groups Public authorities Consumers Businesses

SEPA migration - organisation in Belgium


SEPA migration - organisation in Belgium

► Aim of today ● Information delivery on

General progress of SEPA New End-date Regulation Experiences first mover Non-commercial related questions

● Contactpersons for further exchange of information● Spread the "SEPA" word!


SEPA, status in Belgium & Europe


State of play - SCT

Jan

2009

Jul

2009

Jan

2010

Jul

2010

Jan

2011

Jul

2011

Jan

2012

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

2.3% 4,4%

16.7%

36.6%

44,7%51.2%

53.8%

1.9%

9,7%

6.2%

24,2%

9,0%

14,7%

20.5%

24.5%

24.8%

Credit Transfers processed in SEPA format (% of total CTs)

CEC

Euro area CSMs


State of play - SCT

BE DE IE GR ES FR IT CY LU MT NL AT PT SI SK FI EE0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

SCT - per country

2008-H1 2008-H2 2009-H1 2009-H2 2010-H1 2011-H1

BE DE IE GR ES FR IT CY LU MT NL AT PT SI SK FI0

10

20

30

40

50

60

70

80

90

100

SCT % - per country

2008-H2 2009-H2 2010-H2 2011-H2


State of play - SCT

► Last figures in Belgium: 53.8% (March 2012)► 01/01/2011: stop processing old paper forms

► New folder on SCT migration


State of play - SDD

2009

-11

2009

-12

2010

-01

2010

-02

2010

-03

2010

-04

2010

-05

2010

-06

2010

-07

2010

-08

2010

-09

2010

-10

2010

-11

2010

-12

2011

-01

2011

-02

2011

-03

2011

-04

2011

-05

2011

-06

2011

-07

2011

-08

2011

-09

2011

-10

2011

-11

2011

-12

2012

-01

2012

-02

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

0.00

0.10

0.20

0.30

0.40

0.50

0.60

Direct Debits processed in SEPA format(% total DD)

Volumes of SDD transactions (Millions) % share of SDDs in number of total transactions processed

Electrabel BE


European developments

► SDD Fixed amount scheme● EPC scheme● Code of conduct ?

► European Commission Green Paper● "Towards an integrated European market for card, internet

and mobile payments." Consultation process until 11 April 2012 See:

http://ec.europa.eu/internal_market/payments/cim/index_en.htm

► European Commission's proposal on an end-date for migration to SEPA

http://ec.europa.eu/internal_market/payments/cim/index_en.htm


Legal Framework


SEPA legal framework

► Payment Services Directive 2007/64/EC (PSD)● Wet betreffende de betalingsdiensten/Loi relative aux

services de paiement Transparency of conditions and information requirements for

payment services Rights and obligations to the provision and use of payment

services

● Wet betreffende het statuut van de betalingsinstellingen /Loi relative au statut des établissements de paiement

Establishment of "Payment Institutions"

► Regulation 924/2009 on cross border payments● Equal charges for national and cross border payments

► Regulation establishing technical and business requirements for

credit transfers and direct debits in euros


Regulation of the European Parliament and of the Council

► Regulation establishing technical and business requirements for credit transfers and direct debits in euros

► Règlement établissant des exigences techniques et commerciales pour les virements et les prélèvements en euros

► Verordening tot vaststelling van technische en bedrijfsmatige vereisten voor overmakingen en automatische afschrijvingen in euro

LINK:

NL= http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:094:0022:0037:NL:PDF

FR= http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:094:0022:0037:FR:PDF


Regulation of the European Parliament and of the Council

► Proposal from the Commission -16 December 2010

► Adoption on 14/03/2012 ► Published in Official Journal on 30/03/2012


Regulation, article 1

► Article 1: Scope● credit transfers and direct debit in € within the EU

both legs in the EU

● out of scope: cards mobile payments money remittance e-money



► Article 6: End dates● "Credit transfers shall be carried out in accordance with the

requirements ... by 1 February 2014"● "Direct debits shall be carried out in accordance with the

requirements ... by 1 February 2014"

► Technical requirements in Annex



► Article 5: Requirements for credit transfer and direct debit transactions

► Technical requirements in Annex

► more or less in line with European Payment Council (EPC) Rulebooks

● Use IBAN & BIC● Use ISO20022● Data fields● ...


Regulation, article 5 ► Article 5: Requirements for credit transfer and direct

debit transactions► more or less in line with European Payment Council

(EPC) Rulebooks● Credit transfers

IBAN only ! from 01/02/2014 for national payments

» but possibility to postpone per country

from 01/02/2016 for cross border payments

● Direct debits " ... payers shall have the possibility to:

instruct their PSP to limit a direct debit collection to a certain amount or periodicity, or both;

request their PSP, where there is no refund right according to the PSD, to verify each direct debit transaction and to check whether the amount and periodicity of the submitted direct debit transaction is equal to the amount agtreed in the mandate;

instruct their PSP to block any direct debits to their account or to block any direct debits coming from one or more specified payees or to autorise direct debits only coming from one or more specified payees."

but not applicable for B2B!


Regulation, article 5, continued

● "The PSP shall ensure that a Payment Service User (PSU) that is not a customer or a micro-enterprise, and initiates or receives individual credit transfers or direct debits which are bundled together for transmission, uses message formats ISO20022."

Option to postpone until 01/02/2016.


Regulation, article 3 & 9

► Article 3: Reachability● " ... the payment service provider (PSP) of the payee ... shall be reachable ...

for credit transfers ... initiated ... in any member state ... " ● " ... the payment service provider (PSP) of the payer ... shall be reachable ...

for direct debit transactions ... initiated by a payee ... in any member state ... " only for "consumers", not for B2B

► Article 9: Payment accessibility● "A payer making a credit transfer up to 50 000 € to a payee with a payment

account located within the Union shall not specify in which member state the that payment account should be located ..."

● " A payee using a direct debit to collect funds up to 50 000 € from a payer with a payment account located within the Union shall not specify in which member state that payment account should be located .. "

► Conclusion:● Credit transfers have to be credited on an account regardless where

the account is held● Direct debit can be made regardless where the payee/payer hold their

account



► Article 8: Interchange fees for direct debit transactions

● "the aim of the European Commission is to create neutral conditions for competition between PSP's"

● " ... no multilateral interchange fees per direct debit transaction or other agreed remuneration with an equivalent object or effect shall apply to direct debit transactions."

Exception for "R-transactions", if they are cost-based


Regulation, article 16 ► Transitional provisions

● Credit transfer niche products (less than 10%, 01/02/2016)● Direct Debit niche products (less than 10%, 01/02/2016)● Allow PSPs to provide conversion services for national

payment transactions to consumers tot 01/02/2016● Non-euro area countries


Regulation, article 17: Amendments to Regulation (EC) N° 924/2009 ► Charges levied by a payment service provider on a

payment service user in respect of cross-border payments shall be the same as the charges levied for corresponding national payments

● the 50.000 € treshold disappears!


Regulation, overview per item

SEPA End Date CT and DD 1 Feb 2014

Non-euro area MS 31 Oct 2016

DD MIF End Date Cross-border 1 Nov 2012

Domestic 1 Feb 2017

Phase-out of BIC Domestic 1 Feb 2014 (could be deferred by MS until 1 Feb 2016)

Cross-border 1 Feb 2016

Conversion facilities

ISO 20022 XML

National account numbers

Payment service users

1 Feb 2016 (if opted in by MS)

1 Feb 2016 (if opted in by MS)

Phase-out niche products CT and DD 1 Feb 2016

Interoperability Euro area MS 1 Feb 2014

Non-euro area MS 31 Oct 2016

Payment card at POS resulting in a direct debit

e.g. the German ELV 1 Feb 2016

source: ECB


1.

1 February 2014 Migration end-date for SEPA credit transfers and SEPA direct debits in Euro Member States

31 October 2016 Migration end-date for SEPA credit transfers and SEPA direct debits in non-Euro Member States – Note one year after joining euro, if earlier

1 February 2014 End-date for grandfathering existing direct debit mandates

1 November 2012 Prohibition of per-transaction MIF for cross-border direct debits

1 February 2017 Prohibition of per-transaction MIF for national direct debits

Immediately effective Reachability for SEPA credit transfers and SEPA direct debits in Euro Member States

31 October 2016 Reachability for SEPA credit transfers and SEPA direct debits in non-Euro Member States – Note one year after joining the Euro, if earlier

1 February 2014 Interoperability in Euro Member States

31 October 2016 Interoperability in non-Euro Member States – Note one year after joining the Euro, if earlier

1 February 2014 Elimination of the obligation for users to provide the BIC for national payments, where necessary – Note Member States have the option to defer to 1 February 2016

1 February 2016 Elimination of the obligation for users to provide the BIC for cross-border payments

1 February 2016 Expiry of transitional arrangements for so called 'niche products'

1 February 2016 Expiry of transitional arrangements for one-off direct debits used at merchants (e.g. in Germany 'Elektronisches Lastschriftverfahren' – ELV)

1 February 2016 Expiry of Member State option to allow banks to provide conversion services

Regulation, overview of the dates


Regulation: conclusions

► Published ► Strict deadlines ► Use of ISO20022► Time to

● Start migration to SCT for those who did not yet start

● Plan SDD migration


Lessons learnt from Electrabel


SDD 'Big billers' January 2012

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

Electrabel

Nombre de mandats

50%


Case study November 2011


Migration work (1)

► On master data● Cleaning● Verify the quality & completeness of BNB file

(debugging)● Verify the quality of your data● Enrichment IBAN before go live to reduce

conversion time● Pro – active and after care process if not possible

to convert


Migration work (2)

► On testing ● Real productive End2End SDD & SCT test● Mass tests files (volumes)

► On Customer● Information mandatory


Lessons learnt (1)

► New business rules► New master data mandate management

● Create, modify, delete, scanning, archiving● R-Transactions : impact on process, data,…

► New file format► New interfaces with bank e.g. upgrade Isabel► New documents : Letters, footers,…► New reports to create► New hardware / software e.g. scanner, …


Lessons learnt (2)

► A Program structure with a budget and dedicated ressources

► A Planning (Time not to underestimate)► To start it as fast as possible, It takes time ► To choose your bank(s) partners as quickly as

possible ► To create awareness internal & external► To train everybody► Tests Tests Tests and Tests► To inform your customer


Next steps


Next steps

► Organise Steering Committee on the Future of Payment Means

● NBB invites your CEOs● Present Progress report on the migration towards

SEPA Focus on communication campaign

● Publish report● Collect information from you on your planning


Next steps

► 2008 ► 2009 ► 2011► 2010

► 28/01► Start► SEPA

► April► Q4

► aangifte► met

► brochure

► op aanvraag

► aanslag met SEPA- formulier

► Q1

► stop verzending

oude

formulieren

► stop verwerking oud

e formulieren

► 31/12► Q3► Q2 ► Q4► jan► feb► maa

Example migration SCT


Next steps: migration SDD

2009 2010 2011

Novembre Avril

START SDD

PSD entry into force

Q2 Q3 Q4Q1

2012 2013...

Q2 Q3 Q4Q1

321


Information and Contacts

► your bank...

► Febelfin● http:/www.sepabelgium.be

► NBB● www.nbb.be/sepa/en● Jan Vermeulen tel 02 221 23 12 ● Axelle Waterkeyn tel 02 221 49 80● [email protected]

► European Commission● http://ec.europa.eu/internal_market/payments/sepa/index_en.htm

► EPC● www.europeanpaymentscouncil.eu/

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