SEPA payment
SEPA payments are payment transactions executed on the basis of a Payment order given by the payer or the beneficiary to the payment service provider to transfer funds from a payment account or to a payment account held with a payment service provider.
SEPA TRANSFERS
A SEPA Transfer (SEPA Credit Transfer - SCT) is a non-cash transfer in EUR in the framework of the countries involved in SEPA. It is executed on the basis of a Payment order made by a payer in electronic or paper form at their bank for the transfer of funds to the beneficiary's bank, which accounts for the value of the transfer in favour of the beneficiary's account.
SEPA Transaction characteristics
- The payment currency is always EUR
- Payment instruction SHA - the client involved in the transaction always pays only the fees of their bank
- The client of the bank is informed in advance about the fees for the transfer of funds
- The full sum is credited to the beneficiary's account, without any reduction for fees
- The amount of the payment is not limited
- a maximum settlement time of 2 business days - the payment is credited to the beneficiary's account no later than the next business day after the settlement date on the payer's account
- IBAN and BIC are used for identifying the accounts and the banks
- Rejected and returned payments are governed by a standard set of rules with the ability to automate processing in the bank as well as with the client
BENEFITS OF A SEPA TRANSFERS
Benefits for the client
- performing payments in EUR in 34 SEPA countries under the same / similar conditions as within their own country from one account in one bank using the competitive environment of banks
- payments are made in full, the client involved in the transaction always pays only their bank charges - the payer pays the fees of the payer's bank and the beneficiary the fees of the beneficiary’s bank.
- account identification in SEPA - IBAN is sufficient
- clear timeframe for making a payment to the beneficiary’s account, no later than the next business day - improving the client's cash flow
- transfer of information (structured or unstructured according to clients' agreement) - "Remittance information" in the range of 140 characters
SEPA DIRECT DEBIT
SEPA Direct Debit (SEPA Direct Debit - SDD) is a payment service where the amount of a payment transaction is debited from the payer's payment account and credited to the beneficiary's account, with the SEPA direct debit payment order being submitted by the beneficiary on the basis of the payer's consent with such a write-off. The debit authorization (mandate) for the execution of the SEPA direct debit is given by the payer directly to the beneficiary. SEPA direct debit can only be realized by the client in EUR in SEPA countries.
The advantages of SEPA direct debit
- the possibility of making a SEPA direct debit payment in SEPA countries
- the payment is credited to the beneficiary's account on the same day as it was cleared in the ordering party's account
- Prevention of late payment by payer - SEPA direct debit is initiated by the beneficiary
- ensuring of account protection as required by the client, including the possibility of issuing an Authorization for direct debit
- notification of the client about the receipt of the SEPA direct debit from the bank, if it is the first direct debit
- client notification of rejected SEPA direct debit
- simple but also safe way of the payment of liabilities in EUR
- payer's claim for refund (consumer with SDD Core)
- improvement of cashflow for the client / collector - credit on the day of the designated due date
The following terms are used in the framework of SEPA direct debit:
- Mandate - The consent that the payer gave to his/her partner (collector) in a non-cash form of payment in the form of a SEPA direct debit, which is a contractual relationship between the payer and the collector without the participation of the bank
- CID - A unique collector identifier assigned to it by an institution designated to manage the collector database in the given country (in the SR it is the NBS).
- UMR - reference of the mandate, unique collector identifier specified by the collector
- Account protection - fully protected (blocked), partially / conditionally protected, open
- Authorization for direct debit - consent entered on the current account of the client, by which the eligibility of direct debit from the side of the collector is checked.
EBA STEP2
EBA-STEP2 is a payment system that enables automated payment processing within banks of SEPA countries (i.e. EU / EEA countries and non-EU / EEA countries but involved in SEPA)
In order to send a payment via EBA-STEP2, when a payment order is submitted by the client, it is necessary that, in addition to standard data, the payment is as follows:
- currency EUR
- payment type - standard
- the account of the recipient always in the correct IBAN form
- instructions on fees - SHA (fees of the payer's bank are paid by the payer, the fees of other banks are borne by the beneficiary)
If the aforementioned conditions are met and the client has sufficient funds available in his/her account to make the transfer, VÚB Bank will make a payment through the STEP2 system. In such a case, the client only pays the VÚB Bank fees, payment at the beneficiary's bank is made in the full amount - without charging the fees of foreign banks.
SEPA payments are payment transactions executed on the basis of a Payment order given by the payer or the beneficiary to the payment service provider to transfer funds from a payment account or to a payment account held with a payment service provider.
