SEPA - Single Euro Payments Area

What is SEPA

SEPA is a single euro payments area that is governed by efficient competition and where no cross-border or domestic payments are distinguished within the euro area For the purpose of implementing SEPA, common legal bases, uniform technical standards and commercial practice, as well as uniform methods of payment for making euro payments have been established.

The aim of SEPA is to promote integration in Europe through competitive and innovative euro area retail payment services offering services of higher quality, more efficient products and more favourable payment facilities. The objective if to create a payment services market where payments will soon be carried out only electronically.

SEPA allows payment service users to initiate credit transfers and direct debits denominated in the euro just from one bank account into all the countries of the euro area as easily as domestic payments. Payment cards complying with SEPA standards enable to execute payments throughout the euro area.

Who are responsible for implementing SEPA and what has been achieved

On the European Union level the European Payments Council (EPC) set up on the initiative of the European Commission and the European Central Bank is responsible for the implementation, planning and monitoring of SEPA. The European Payments Council has achieved remarkable success with the implementation of SEPA and has established the plans, frameworks and standards needed for the operation of SEPA.

In Estonia, the implementation of SEPA is managed by the banks and the Estonian Banking Association, Eesti Pank participates as the manager of settlement systems and regulator, while the Minister of Finance and Riigikogu represent the legislative power.

A preparatory contribution by Estonian banks is the Estonian SEPA Action Plan for the purpose of implementing SEPA. As of 28 January 2008 also several Estonian commercial banks offer a trans-European retail payment service complying with the SEPA standards.

The new Payment Services Directive (PSD) offers a common legal framework within the entire European Union for SEPA payment methods - credit transfers, direct debits and card payments. The deadline for implementing the directive is 1 November 2009.

Read more on the web site of the Estonian Banking Association

Read more on the web site of the European Payments Council