Single Euro Payments Area Explained
The introduction of SEPA (Single Euro Payments Area) brings about one of the most significant
changes in the European Monetary Union since the introduction of the Euro Currency. All
companies operating within the SEPA region will now have to adapt their payment procedures to
comply with The SEPA Format. SEPA is an initiative by the European Banking Industry to ensure
that both domestic & foreign electronic payments across the entire SEPA zone, use the same
format, resulting in many advantages for companies operating in this region. Customers can now
make cashless Euro payments to anyone in the SEPA zone, using a single payment account and
a single set of payment instructions. SEPA means transfers between bank accounts are fast,
reliable and considerably more cost effective.
Prior to SEPA there were many different payment areas or ‘clearing systems’ within Europe. This
resulted in cross border European payments being both expensive and disparate. The European
Payments Council (EPC) has laid the groundwork for a more standardised payment infrastructure.
The SEPA Zone consists of the following territories:
- The 17 members of the European Economic Area (EEA) and EU that are in the Eurozone
- The 10 members of the EEA and EU that are not part of the Eurozone
- The 3 members of the EEA that are not in the EU: Liechtenstein, Iceland and Norway
- Monaco – uses the Euro but is not an EU member country or part of the Eurozone
- Other territories considered to be part of the EU and listed in Article 299 of The Treaty of
The EPC believes that SEPA has a number of benefits including:
- All banks offer the same type of product and adopt the same format
- Equal time limits, equal fraud-risk levels and equal processes across the Euro Zone
- Reduction of costs of electronic money and payment transfers
- The EPC has set out the rules, practices and standards around which banks must comply,
requiring in future that all payments made between the ‘SEPA Zone’ countries are to be
used using the SEPA format
Cashbook offers companies a complete solution for SEPA compliance, now and into the future
when payment protocols are updated. Cashbook has over 18 years of experience of dealing with
over 165 banking formats throughout the world with over 200 Blue Chip/Fortune 500 clients. We
are now at the forefront of the implementation of SEPA compliant payment formats for indigenous
organisations throughout Europe and we look forward to assisting additional organisations with
cost effective banking implementations from single site to shared service centre operations.
Indeed, Cashbook’s electronic banking pedigree dates as far back as 1998 for a 60 site
worldwide deal in the pharmaceutical sector, demonstrating the proven expertise that Cashbook
has to offer in banking format/clearing house technology.
We look forward to many more successful implementations with SEPA.
For more information regarding SEPA take a look at our information videos
or visit – The European Central Bank or The European Payments Council
For more information of how Cashbook can help you with SEPA, contact Robert Moloney:
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For more information about how Cashbook can help you with your SEPA needs, please read the
following information sheets that explain each of Cashbook's Enterprise Migration Packs.
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Margreet Peverelli – Cashbook User, Skiffy