What is SEPA?
SEPA (Single Euro Payments Area) was introduced in 2008 and is a collective payment area for Euro, making it easier trade in different countries. SEPA involves joint rules for standard payments, direct debits and cards.
Which countries use SEPA?
SEPA is used in Europe, which includes the EU, Norway, Iceland, Liechtenstein, Switzerland, Monaco and San Marino.
Consequences of the introduction of SEPA
For business customers, this means that current formats for the submission of payment files will be replaced by the new ISO standard, ISO 20022 XML, as of 31 October 2016. This is applicable for Euro payments only, but it will gradually cover other payments as well. If your business makes Euro payments, you must ensure that your ERP/financial systems support the new format.
Relevant terms to SEPA: ISO 20022