22 October 2017
visit www.avoka.com

European Central Bank warns of Sepa failure in the absence of binding legislation

08 April 2011  |  12766 views  |  4 Sepa

The European Central Bank has called on Brussels to impose concrete end-dates for the imposition of new payments instruments under the Single Euro Payments Area (Sepa) project.

In December, the European Commission proposed an end-2012 timeline for the banking industry to move to new EU-wide credit transfers and direct debits.

The ECB - which had initially been calling for an end-2012 date for SCTs and a shift to SDDs taking place the following year - has reiterated its call for an extended timetable in its formal response to the European Commission's December paper.

Says the central bank: "Taking into consideration the payment industry's need for sufficiently long lead times, the ECB suggests setting concrete dates, which could preferably be at the end of January 2013 for credit transfers and the end of January 2014 for direct debits."

The ECB remains supportive of the European Commission's push for binding regulation, warning that a failure to act could wreck the entire project: "A Union act of general application, binding in its entirety and directly applicable in all Member States, is...considered essential for successful migration to Sepa, as the project would otherwise face a serious risk of failure."

The central bank is also calling on Brussels to provide clear guidance on the regulation of interchange fees for debit card transactions. In 2009, the Commission introduced a temporary default interchange fee for cross-border direct debits, together with a temporary endorsement of national interchange fees for direct debits.

"Both of these Articles will no longer apply on 1 November 2012," notes the ECB. "In order to avoid a legal vacuum hampering migration to Sepa direct debit, it is important that a long-term solution for interchange fees for direct debits is established."

Comments: (4)

Bo Harald
Bo Harald - ZEF, Transmeri, Real Time Economy Program - Helsinki Region | 08 April, 2011, 10:54

This gives time to integrate direct debit and e-invoicing - does not make any sense to run them separately.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 08 April, 2011, 13:28

I will get more confident on any deadline date once i see Banks offering SEPA based services with a competative price structure and an authority that has significant sanctions for non compliance. Otherwise i want hold my breath

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 11 April, 2011, 16:49

Banks are unlikely to develop effective products for consumers till there is more clarity on issues such as interchange from EU institutions.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Bo Harald
Bo Harald - ZEF, Transmeri, Real Time Economy Program - Helsinki Region | 11 April, 2011, 17:06

Argued for pan-EU e-invoicing (just-like-payment model) to be  launched first - then SEPA. Then 1.migration to SEPA would have happened in a natural way (payment of e-invoice leads to SEPA payment) and 2. direct debit would nicely have stepped into e-invoicing (not too late though).

Interchange on cost-covering level should not be a problem.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

EPC warns Brussels to keep its nose out of payments business

EPC warns Brussels to keep its nose out of payments business

14 March 2011  |  12772 views  |  1 comments
European payments industry to convene in Madrid

European payments industry to convene in Madrid

11 March 2011  |  9679 views  |  0 comments
French banks call for Sepa DD interchange mechanism

French banks call for Sepa DD interchange mechanism

20 January 2011  |  10028 views  |  0 comments
EC sets Sepa migration deadlines

EC sets Sepa migration deadlines

16 December 2010  |  16309 views  |  4 comments
ECB's Tumpel-Gugerell sets out Sepa resolutions

ECB's Tumpel-Gugerell sets out Sepa resolutions

29 November 2010  |  15049 views  |  2 comments
EC migration plans would 'derail the entire Sepa project' - EPC

EC migration plans would 'derail the entire Sepa project' - EPC

01 November 2010  |  9371 views  |  0 comments
ECB calls for mandatory Sepa migration deadline

ECB calls for mandatory Sepa migration deadline

22 October 2010  |  10403 views  |  3 comments
Sepa migration deadlines: dates floated but no decision

Sepa migration deadlines: dates floated but no decision

10 June 2010  |  10827 views  |  0 comments
Sepa Council established to kickstart EU payments convergence

Sepa Council established to kickstart EU payments convergence

07 June 2010  |  12561 views  |  3 comments
EBAday 2010: Sepa foundations laid - time to get building

EBAday 2010: Sepa foundations laid - time to get building

28 May 2010  |  12749 views  |  0 comments
EBAday: Nordic banks explore XML payment migration options

EBAday: Nordic banks explore XML payment migration options

26 May 2010  |  8716 views  |  0 comments
European banks call for more political backing for Sepa

European banks call for more political backing for Sepa

13 October 2009  |  9517 views  |  2 comments
New schemes vital to Sepa for cards success - ECB's Tumpel-Gugerell

New schemes vital to Sepa for cards success - ECB's Tumpel-Gugerell

10 September 2009  |  8763 views  |  0 comments
MasterCard re-introduces interchange fees for cross-border payments

MasterCard re-introduces interchange fees for cross-border payments

01 April 2009  |  12190 views  |  0 comments
Eurozone banks told to ditch direct debit interchange by 2012

Eurozone banks told to ditch direct debit interchange by 2012

24 March 2009  |  8904 views  |  1 comments
Visa Europe says close to EC deal on interchange fees

Visa Europe says close to EC deal on interchange fees

20 January 2009  |  8930 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.atos.netRegister now

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
14934 views comments | 17 tweets | 29 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
13337 views comments | 22 tweets | 28 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9879 views comments | 13 tweets | 10 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
9858 views comments | 12 tweets | 23 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8882 views comments | 9 tweets | 18 linkedin

Featured job

circa £250K total package
London

Find your next job