Partner Article

The Many Benefits of SEPA Payments

What is SEPA?

SEPA (Single Euro Payments Area) Transfers are a means for customers to easily and efficiently make payments (in Euros) across Europe and are designed to be as simple as making a domestic bank transfer.

SEPA is an EU payment integration initiative which not only improves the efficiency of cross-border payments, but also speeds up transactions and provides a range of benefits for businesses signing up for the scheme, such as the ability to target new customers in new countries across the SEPA zone.

The SEPA zone covers 33 countries, affecting more than 500 million consumers. The countries covered are:

• Non-Eurozone countries in European Union: Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden, UK
• Eurozone countries in the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain
• EEA (European Economic Area) members: Iceland, Liechtenstein, Norway
• Additional countries - Monaco and Switzerland.

What’s in it for your business?

SEPA payments are designed to make Europe-wide trade more accessible and efficient for companies already trading in the EU (as well as those considering trading across the area), and there are a number of benefits that companies already using the service have noticed:

• Standardising payments means it is easier to process and simpler to identify transactions, which leads to faster settlement of debts
• SEPA transfers improve European trade, making payments simpler, cheaper and faster for everyone
• With no need to have a number of different bank accounts in separate European countries, businesses can cut costs and improve their cash visibility, reducing risk
• With SEPA transactions, fees are lower than traditional cross-border payment methods
• Direct Debits can be collected from anywhere in SEPA - with 33 countries included in the zone, this makes international trade more attractive than ever before
• Payments can be routed to countries offering the best terms, such as no interchange fees

Summary

Get ready for SEPA

Payment providers in the know will have already started preparing for SEPA, and businesses looking for SEPA insights should consider asking them for advice! In 2014, current national payment methods will cease to exist, and instead will be replaced by SEPA Direct Debit (SDD) and SEPA Credit Transfer (SCT). It is vital to be SEPA ready - failing to prepare could lead to delays receiving customer payments or even being unable to pay creditors in time.

If you’re looking for more information relating to SEPA Credit Transfers or SEPA Direct Debits, it’s a good idea to check out the AccessPay SEPA Frequently Asked Questions page, where you will find a wealth of information on SEPA that should answer any questions you may have.

This was posted in Bdaily's Members' News section by Ali Moiyed .