SEPA Session info Big Billers
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Transcript of SEPA Session info Big Billers
SEPA Session info Big BillersBanque nationale de Belgique - 18/01/2013
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PSD & SEPA
Payment Services Directive (PSD)► Legal framework for payments in the EEA► Introduced by the EC – transposed into national law► Purpose:● raise the level of protection for consumers (right to a refund)
● guarantee better execution times for payments
● increase transparency of fees and commission
● provide a legal framework for SEPA
► Scope:● new SEPA products
● existing payment schemes, such as DOM80
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PSD & SEPA
Single European Payments Area (SEPA)► Initiative of the European Commission,
supported by the ECB and the EPC.► Applies to the countries of the EEA +
Switzerland + Monaco (the SEPA zone)► Standardisation of payments in EUR ● SEPA Credit Transfer
● SEPA Direct Debit
● SEPA Cards
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SEPA - End date regulation
2009 2010 2011 2013
Start SCT
"End Date Regulation” voted by European Parliament & endorsed by EC
(Feb 2012)
Start SDD
SDD
SCT
2014
End Date for domestic tools
(Feb 2014)
In 1 year
Local systems
… …2008 2012
Today
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SEPA - End date regulation
Schemes
Formats
Consumer protection
• End of domestic CT and DD schemes in euro countries as from 01/02/2014
• Mandatory use of ISO XML 20022 format to banks as from 01/02/2014
• IBAN mandatory as from 01/02/2014
• BIC no longer required for domestic transactions as from 01/02/2014
• BIC no longer required for cross-border transactions as from 01/02/2016
• New protection measures for direct debits consumers
(white/black list, limit amount, etc.) as from 01/02/2014
SEPA Credit Transfer
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Graphic 1: Transfers in SEPA format (2008 - November 2012)
(% of the total number of bank transfers)
Sources: European Central Bank (ECB) and the Centre for Exchange and Clearing (CEC).
1,91%
16,07%
33,33%
38,83%
44,71% 45,09%
47,66%52,30%
58,03%59,80%
61,25%
1,80%
6,20%
13,90%16,86%
20,50% 21,07%23,71%
27,16%29,57% 30,30%
30,18%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
CEC
Euro area CSMs
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SCT Migration Project
1. January 2008 : SCT Start – up
2. October 2011 : End of Legacy Paper Acceptance (BE)
3. 2011 – 2012 : Communication campaign Febelfin / NBB
4. End Date : 01/02/2014 no domestic payments types can be used
8
40%to go
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SCT Migration Client Impact
► Clients must use the IBAN
► Clients must provide the BIC● Domestic payments: until 01/02/2014● Cross-border payments: until 01/02/2016
► Clients must use the ISO20022 payment standards, when initiating payments by file upload
● Important change with regards to Domestic Credit Transfer: Beneficiary name is a mandatory field for all SCT payments
► Reporting:● Clients should upgrade to CODA v2.3● Clients may request XML reporting as of 01/02/2014
If you are using an ERP package or accounting package, your systems would probably be impacted.
Please contact your software provider for more information
SEPA Direct Debit
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Migration to SDD in Belgium(July 2011 - July 2012)
1,38% 1,74% 2,10% 1,93%2,65%
18,98%
12,43% 13,61% 14,72% 11,89%15,66% 15,32% 12,86%
0,45% 0,56% 0,56% 0,51% 0,65%0,51% 0,49% 0,60% 0,58% 0,55% 0,69% 0,65% 0,59%
98,17% 97,69% 97,34% 97,56% 96,70%
80,52%
87,08% 85,79% 84,71%87,56%
83,65% 84,04% 86,55%
0
10
20
30
40
50
60
70
80
90
100
jul/11 aug/11 sep/11 oct/11 nov/11 dec/11 jan/12 feb/12 mar/12 apr/12 may/12 jun/12 jul/12
% V
olum
es
% SDD CORE % SDD B2B % legacy direct debit (DOM80)
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SDD transactions in Europe
Source: ECB
0,00
0,50
1,00
1,50
2,00
2,50
0
2
4
6
8
10
12
14
% s
hare
of S
DD
s
Tran
sacti
ons
(mill
ions
)
Volume Share SDD
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Breakdown of the total direct debit mandates on the total number of creditors registered in Belgium
(in percentage)
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% M
anda
tes
Number of companies
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(Provisional) plans for migration towards the SDD by some of the big billers
2009 2010 2011
November April
StartSDD
End dateRegulation
Q2 Q3 Q4Q1
2012 2013
Q2 Q3 Q4Q1
01/02 2014
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Mandate management - SDD vs DOM80
2) Prenotification (bill)
New!!
Debtor
Creditor bankDebtor bank
5) Debit
1) Mandate
6)
4)
3) XML collection file + MRI
Creditor
4) collection
6)
Clearing & settlement mechanism
New!!
Debtor
Creditor bankDebtor bankMandate management
CreditorMandate management
6) Credit
1) Mandate
Informs
Debtor bank
1b) mandateconfirmation
B2B!!
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Mandate management - Migration from DOM80 to SDD
► Possible to keep existing mandates on transition from DOM80 to SDD Core
► Existing mandates are kept at the debtor’s bank► Once the mandate has been migrated, it is
impossible to return to DOM80► A creditor can use DOM80 and SDD Core alongside
each other (but not for the same mandate)
► New mandates are required on transition to SDD B2B
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The mandate reference must be allocated by the creditor and is limited to 35 positions. It is advisable to keep the reference short and simple. This will make it easier for debtors to confirm mandates.
Mandate management - The mandate
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New SDD creditor: Creditor receives Creditor ID from the bank (in the form of a certificate):
Positions 3 and 4: Check digit (does not apply on ‘Business Code’)Positions 8 to 35 (max.): Country-specific ID
a) either identical to the creditor's Belgian business number (10 positions)
b) or ‘bank code’ + ‘D’ + a bank counter (max. 24 positions)
Mandate management - Creditor ID
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Mandate management - Changes
SDD rulebook says for changes in:
1. Unique Mandate Reference
2. creditor identification
3. creditor name
4. debtor’s account numberA. to another number within the same bank
B. to another number with another bank
The creditor must report the amendments to the Creditor bank as part of the next collection (as a “mandate amendment”). Additional attention point: in case 4.B, the creditor must send the next collection as a “FIRST”.
The paper mandate must be updated as well. Necessary to counter refund requests! B2B? a new confirmation is needed for all amendments except n°3 (Febelfin Consensus) Creditor to evaluate if new mandate might not be more opportune instead of working with
a mandate amendment
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The creditor needs to notify the debtor of an upcoming collection► Initiative of the European Payments Council, supported by the EC
and the ECBNo earlier than 1 year and no later than 14 days before the execution date
► based on an invoice or similar document
Possible deviations:► Agree a shorter period than 14 days with the debtor► in a separate agreement between the debtor and creditor► using a clause in the mandate (clearly separated from the
compulsory parts)► a single payment plan instead of individual invoices for recurring
payments
SDD in detail - Prenotification
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SDD Core
D-14Pre-notification
D-5 one off/first
D-2Recurrent
D+5return
D+8wrefund
D+13mrefundunauthorized
DDue date = settlement
SDD B2B
D-14Pre-notification
D+2return
D-1 DDue date = settlement
D+13mrefundunauthorized
DPivot date= due date
D-1D-5Pre-notification
DOM80
D+1Settlement/unpaid
D+8wrefund
D+13mrefundunauthorized
SDD in detail - Timeline
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SDD in detail - R transactions
1.
SDD Sequence type sent by the Creditor
Type of R-trx
Before Due Date: Pacs.002 Reject or Request for Cancellation (RFC)
Camt.056
After Due Date: Pacs.004 Return/Refund
Next collection with same mandate based on R-transaction received
First Reject/RFC First
First Return/Refund Recurrent
Recurrent Reject/RFC/Return/Refund Recurrent
Last Reject/RFC Last
Last Return/Refund Mandate expired.
One OFF Reject/RFC One-OFF
One OFF Return/Refund Mandate expired
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► The refund right is unconditionalThe debtor requests the refund without having to give a reason and
the debtor's bank immediately reimburses the debtor without any loss to the debtor.
► The creditor will● be debited for the original amount + a refund compensation
fee
● see the result in his statements / CODA reporting incl. the original reference
SDD in detail - R transactions
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4 possible scenarios:► Migration from DOM80 to SDD (Core)
► Transition from DOM80 to SDD B2B
► Starting with SDD Core
► Starting with SDD B2B
Starting with SDD
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Starting with SDD - Migration from DOM80 to SDD Core
► Sign creditor contract► Manage mandates● Avoid creation of new DOM80 mandates if needed
● Overview of existing DOM80 mandates (incl. IBAN/BIC) from NBB via your bank
assign unique mandate references
► Send collections ● Send prenotification (invoice)
● Send collection file to the bank (mandate lifecycle!)
► Follow up on collections ● Once the collection has been booked, the mandate has been irrevocably
migrated.
► Cancellation of the DOM80 creditor number
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Starting with SDD - Transition from DOM80 to SDD B2B
Impossible to migrate; new mandates are required!► Reachability check
http://epc.cbnet.info/content/adherence_database► Sign creditor contract ► Manage mandates● avoid creation of new DOM80 mandates if needed
● create new mandates + inform debtor about the need to confirm the mandate
► Send collections ● send prenotification (invoice)
● send collection file to the bank (mandate lifecycle!)
► Follow up on collections► Cancellation of the DOM80 creditor number
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► Sign creditor contract ► Manage mandates● create new mandates
► Send collections ● send prenotification (invoice)
● send collection files to the bank (mandate lifecycle!)
► Follow up on collections
Starting with SDD - SDD core
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► Reachability check http://epc.cbnet.info/content/adherence_database
► Sign creditor contract ► Manage mandates● create new mandates
● inform debtor about the need to confirm the mandate
► Send collections ● send prenotification (invoice)
● send collection files to the bank (mandate lifecycle!)
► Follow up on collections
Starting with SDD - SDD B2B
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The SDD migration project
Inventory Preparation Testing ImplementationPlanning
Start now !
Business as usual
Procedures
Involved parties
Databases
IT architecture
Migration plan
Communicationplan
Training plan
SDD contract
Manage mandates
Collectionset up
Adaptprocedures
Tools
Collection files
Reporting
Inform debtors
Send collections
Follow up
Do not underestimate required time & efforts
Communication
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Communication: Regulation,considérant 15
► "Il est indispensable que tous les acteurs, notamment les citoyens de l'Union, soient informés de façon appropriée et dans un délai raisonnable, de manière à être pleinement préparés aux changements que le SEPA apportera. Par conséquent, les principales parties prenantes, telles que les prestataires de services de paiement, les administrations publiques et les banques centrales nationales, ainsi que les personnes effectuant régulièrement des paiements devraient mener de larges campagnes d'information spécialisées, proportionnelles aux besoins et adaptées à leur public si nécessaire, afin de sensibiliser le public et de préparer les citoyens à la migration vers le SEPA. Il y a lieu notamment de familiariser les citoyens à la migration du code BBAN au code IBAN. Les comités de coordination nationaux sont les mieux placés pour coordonner ces campagnes d'information."
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Communication plan NBB (March 2012 – February 2014)
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Communication - Support NBB
► Toolkit● One pager
● Videos
● PPT Presentations
● Links: ECB, EPC, Febelfin,...
► Other● Presentations
● Documentation
● Op demand...
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Communicatie - Support NBB
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Useful SEPA links
► SEPA Belgium (www.sepabelgium.be)
► Febelfin (www.febelfin.be) “Mijn geld en ik" – "Betalingen van a tot z – Betalen in de praktijk”
► NBB (www.nbb.be/sepa)“Betalingssystemen – SEPA”
► European Payments Council (EPC)(www.europeanpaymentscouncil.eu)
► ISO 20022 standard (www.iso20022.org)