On the 28th of January 2008, a new chapter is going to begin for the new European payment transaction business. As of this date, the gradual introduction of a standardised electronic payment area SEPA ("Single Euro Payments Area") starts in the European Union. Its aim is a standardisation of the European payment transaction systems. BAWAG PSK has been involved in the implementation from the beginning in the course of the Austrian Payment Council (APC) and is already now fit for SEPA. All customers of BAWAG PSK - from private customers to the Republic of Austria - can profit.
With the introduction of the Euro as book money in 1999 and the issuing of Euro-notes and coins in the beginning of 2002, the foundation for a single European currency area in the Euro countries was established. The next consequent step on this way is a standardised payments area SEPA which currently comprises 31 countries – the 27 EU member countries as well as Liechtenstein, Norway, Iceland and Switzerland.
It is the vision of SEPA to create a standardised infrastructure and a harmonised legal frame for mass market payment transactions in the Euro area. Subsequent to the implementation, the payment transactions will be processed electronically and according to standardised regulations by fully compatible systems on the European banking level. New and European wide instruments will be developed. Payments via bank transfer or via card will work domestically as well as abroad according to the same standards. Direct debit which was so far only offered domestically will be available in the whole SEPA area. Bank cards with a payment function can be used at terminals in all SEPA countries.
BAWAG PSK will offer its customers the following SEPA payment transaction products which are processed fully automated ("Straight Through Processing") just in time for the planned start:
- SEPA Cards Framework as of 28.01.2008 - SEPA Credit Transfer as of 28.01.2008 - SEPA Direct Debit as of November 2009
SEPA Cards Framework
The amount of electronic payments with a bank card will significantly increase in the future, as there will be increasingly more acceptance stations available. Thus, less cash money will be required for daily payments after the area wide implementation in the SEPA area. A change of the currently used bank cards is not necessary.
SEPA Credit Transfer
SEPA Credit Transfer will replace the national credit transfer and the currently offered cross border EU Standard Transfer in the SEPA area in the long term. The transfer is processed within three bank days as of the day of the transaction. As of 2012, it will be processed within only one bank day as of the transaction day within the EU. Through separate settlement of charges, the transferred amount will be completely credited to the recipient of the payment. The calculation and amount of charges will not change. IBAN (International Bank Account Number) and BIC (Bank Identifier Code) will replace the domestic banking code and account number. Both are already now printed on each account statement of a BAWAG or PSK BANK account.
SEPA payment order (the receipt for the placing of the order) will be offered to our customers as of 1st of July 2008. However, bank transfers will already now be processed according to the new standards.
SEPA Direct Debit
This direct debit procedure is completely new and establishes a standardised format and a harmonised legal frame for national and international direct debits. There are no foreign accounts required for the processing. So far, there was no standardised product in the cross border payment transaction business in this sector. IBAN and BIC replace the domestic banking code and account number. In case of disputed or non authorised direct debits, an objection can be raised within 56 calendar days as of the date of debit.
David Roberts, CEO of BAWAG PSK: " SEPA signifies for our customers that they will need only one single account as of November 2009 at the latest, in order to reach all other accounts in the Euro-area as simple, quick and cost efficient as they so far only experienced in case of domestic accounts. This also implies major facilitations for commercial customers which are operating out of their home market. As big player and as a bank who is traditionally based in the business area of payment transactions we are glad to be able to process payments of our customers and of those who will become our customers, even quicker and more cost efficient according to the new SEPA Standards."
With the introduction of the Euro as book money in 1999 and the issuing of Euro-notes and coins in the beginning of 2002, the foundation for a single European currency area in the Euro countries was established. The next consequent step on this way is a standardised payments area SEPA which currently comprises 31 countries – the 27 EU member countries as well as Liechtenstein, Norway, Iceland and Switzerland.
It is the vision of SEPA to create a standardised infrastructure and a harmonised legal frame for mass market payment transactions in the Euro area. Subsequent to the implementation, the payment transactions will be processed electronically and according to standardised regulations by fully compatible systems on the European banking level. New and European wide instruments will be developed. Payments via bank transfer or via card will work domestically as well as abroad according to the same standards. Direct debit which was so far only offered domestically will be available in the whole SEPA area. Bank cards with a payment function can be used at terminals in all SEPA countries.
BAWAG PSK will offer its customers the following SEPA payment transaction products which are processed fully automated ("Straight Through Processing") just in time for the planned start:
- SEPA Cards Framework as of 28.01.2008 - SEPA Credit Transfer as of 28.01.2008 - SEPA Direct Debit as of November 2009
SEPA Cards Framework
The amount of electronic payments with a bank card will significantly increase in the future, as there will be increasingly more acceptance stations available. Thus, less cash money will be required for daily payments after the area wide implementation in the SEPA area. A change of the currently used bank cards is not necessary.
SEPA Credit Transfer
SEPA Credit Transfer will replace the national credit transfer and the currently offered cross border EU Standard Transfer in the SEPA area in the long term. The transfer is processed within three bank days as of the day of the transaction. As of 2012, it will be processed within only one bank day as of the transaction day within the EU. Through separate settlement of charges, the transferred amount will be completely credited to the recipient of the payment. The calculation and amount of charges will not change. IBAN (International Bank Account Number) and BIC (Bank Identifier Code) will replace the domestic banking code and account number. Both are already now printed on each account statement of a BAWAG or PSK BANK account.
SEPA payment order (the receipt for the placing of the order) will be offered to our customers as of 1st of July 2008. However, bank transfers will already now be processed according to the new standards.
SEPA Direct Debit
This direct debit procedure is completely new and establishes a standardised format and a harmonised legal frame for national and international direct debits. There are no foreign accounts required for the processing. So far, there was no standardised product in the cross border payment transaction business in this sector. IBAN and BIC replace the domestic banking code and account number. In case of disputed or non authorised direct debits, an objection can be raised within 56 calendar days as of the date of debit.
David Roberts, CEO of BAWAG PSK: " SEPA signifies for our customers that they will need only one single account as of November 2009 at the latest, in order to reach all other accounts in the Euro-area as simple, quick and cost efficient as they so far only experienced in case of domestic accounts. This also implies major facilitations for commercial customers which are operating out of their home market. As big player and as a bank who is traditionally based in the business area of payment transactions we are glad to be able to process payments of our customers and of those who will become our customers, even quicker and more cost efficient according to the new SEPA Standards."
