SEPA Session info ERP
Banque nationale de Belgique - 15/04/2013
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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MOB ERP/IT - 15/04/2013
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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MOB ERP/IT - 15/04/2013
SEPA - End date regulation
"End Date Regulation” voted by
European Parliament & endorsed by EC
(Feb 2012)
…
2008
2009
2010
2011
2012
2013
2014
…
Local systems
SCT
Start SCT
SDD
Start SDD
End Date
for domestic tools
(Feb 2014)
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MOB ERP/IT - 15/04/2013
SEPA - End date regulation
Schemes
• 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
Formats
• 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
Consumer
protection
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• New protection measures for direct debits consumers
(white/black list, limit amount, etc.) as from 01/02/2014
MOB ERP/IT - 15/04/2013
SEPA - XML
► http://www.febelfin.be/nl/betaalverkeer/richtlijnen-en-protocollen
FinancialInstituti
onIdentification
BIC
Other
Identification
XML Tag
Occurrence Nom
<FinInstnId>
[1..1]
TAG
{Or <BIC>
Or} <Othr>
<Id>
[0..1]
[0..1]
[1..1]
BIC-format
TAG
Max35Text
Ou le BIC, ou Other > Identification doivent
être utilisés.
Le Bank Identifier Code (BIC) se compose de
8 ou 11 caractères, dont seuls les 8 premiers
sont significatifs.
Seule la valeur “NOTPROVIDED” est permise
pour Other > Identification.
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MOB ERP/IT - 15/04/2013
SEPA - IBAN
► http://www.swift.com/solutions/messaging/information_products/dire
ctory_products/iban_format_registry/index.page
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MOB ERP/IT - 15/04/2013
SEPA Credit Transfer
Graphic 1: Transfers in SEPA format
(2008 - February 2012)
(% of the total number of bank transfers)
70%
65%
61.59% 62.93%
CEC
59.80%
58.03%
60%
55%
50%
44.71%
45%
47.66%
45.09%
38.83%
40%
33.33%
35.57%
35%
29.57%
30.30% 30.58%
34.86%
27.16%
30%
25%
20%
62.63%
52.30%
Euro area CSMs
62.97%
20.50%
16.07%13.90%
21.07%
23.71%
16.86%
15%
10%
6.20%
1.91%
5%
0%
1.80%
Sources: European Central Bank (ECB) and the Centre for Exchange and Clearing (CEC).
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MOB ERP/IT - 15/04/2013
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
37%
to go
4. End Date
: 01/02/2014 no domestic payments types can be used
10
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MOB ERP/IT - 15/04/2013
SCT Migration Client Impact
►
Clients must use the IBAN
►
Clients must provide the BIC
●
●
►
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:
●
●
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Domestic payments: until 01/02/2014
Cross-border payments: until 01/02/2016
Clients should upgrade to CODA v2.3
Clients may request XML reporting as of 01/02/2014
MOB ERP/IT - 15/04/2013
SEPA Direct Debit
Migration to SDD in Belgium
(July 2011 - July 2012)
(% of the total number of transactions)
97.56
100
96.70
98.17 97.69 97.34
90
84.71
80.52
80
85.96
87.56
87.08 85.79
83.65
84.04
86.55
81.43
81.18
78.23
72.97
70
76.03
60
50
40
30
26.38
20
18.98
15.32
11.89
10
0
15.66
12.43 13.61 14.72
1.38
1.74
2.10
1.93
23.27
17.85 21.20
18.24
2.65
% SDD CORE
13.30
12.86
0.74
% SDD B2B
% national Direct Debit transactions (DOM80)
Sources: European Central Bank (ECB) and the Centre for Exchange and Clearing (CEC).
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MOB ERP/IT - 15/04/2013
2009-11
2009-12
2010-01
2010-02
2010-03
2010-04
2010-05
2010-06
2010-07
2010-08
2010-09
2010-10
2010-11
2010-12
2011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-07
2011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-02
2012-03
2012-04
2012-05
2012-06
2012-07
2012-08
2012-09
2012-10
2012-11
2012-12
2013-01
SDD transactions in Europe
(% of the total number of transactions)
18
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3
16
2.5
14
12
2
10
1.5
8
6
1
4
2
0.5
0
0
Volume (millions)
Share SDD (%)
Source: ECB
MOB ERP/IT - 15/04/2013
Breakdown of the total direct debit
mandates on the total number of
creditors registered in Belgium
(in percentage)
100%
100%
90%
80%
% Mandates
70%
60%
50%
40%
30%
20%
10%
0%
Number of companies
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MOB ERP/IT - 15/04/2013
Mandate management - SDD vs DOM80
New!!
1) Mandate
Creditor
Debtor
Mandate management
2) Prenotification (bill)
6)
B2B!!
1) Mandate
1b) mandate
confirmation
Informs
New!!
5) Debit
4)
6) Credit
Debtor
Debtor bank
bank
Mandate management
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Clearing &
settlement
mechanism
4) collection
3) XML collection file
+ MRI
6)
Creditor bank
MOB ERP/IT - 15/04/2013
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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MOB ERP/IT - 15/04/2013
Mandate management - Migration from
DOM80 to SDD
► DOM80 data are uploaded by the debtor banks
►
►
►
►
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according to a predefined calendar
Those data are enlarged with IBAN and BIC
Creditor banks can download DOM80 data as
often as they wish
Once a creditor begins with its migration
code M/S: avoid creation of new DOM80 by
debtor banks
Once a creditor finished its migration
form to NBB: removed from the file
MOB ERP/IT - 15/04/2013
End date regulation
End date = 01/02/2014
Belgian banks did not ask a waiver on the Member State options
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MOB ERP/IT - 15/04/2013
Member State Options
Article 16.6
Postponement of the Leading IBAN principle for national Transfers and
Direct Debits to 01/02/2016
Article 6.4
End dates for national Credit transfers & Direct Debits 01/02/2014
Member states are allowed to opt for an earlier adoption than the stated
end dates
Article 16.1
Conversion services for national payment transactions
BBAN -> IBAN for consumers - Germany, Spain
Non-consumers must provide the correct IBAN to the PSP
Article 16.5
Format conversion services local format -> XML
(batches converted internally by the PSP into XML) - Spain, Italy
Articles 16.3/16.4
Niche products market share less then 10 % postponed to 01/02/2016
ELV Direct debits: in the frame of direct debits linked to the use od debit
cards 01/02/2016 - Germany, Spain, France
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MOB ERP/IT - 15/04/2013
XML structure
File structure
3 LEVELS
Group Header
Payment Information 1
Transaction Information 1
Transaction Information 2
« Group header »
(FILE)
« Payment Information »
(BATCH)
« Transaction Information »
(PAYMENT)
Payment Information 2
Transaction Information 3
Transaction Information 4
Transaction Information 5
Payment Information 3
Transaction Information 6
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MOB ERP/IT - 15/04/2013
XML structure
XML and only XML
For each DD batch
Same Due Date
Same Sequence Type:
First
Recurrent
Final
One-off
Same Scheme
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(D-5)
(D-2)
(D-2)
(D-5)
MOB ERP/IT - 15/04/2013
Test your files !
► Tools are available at banks side to test your XML files
► Your files can be analysed
► Errors are explained
► Validation is proposed
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MOB ERP/IT - 15/04/2013
Lifecycle of the sequence types
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
Next collection with same
mandate based on Rtransaction received
After Due Date: Pacs.004
Return/Refund
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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
MOB ERP/IT - 15/04/2013
Reporting
► The management of the files/batches and transactions
has an impact on the reporting
► Booking at batch level
► If customer has a “global” parameter, he can also ask
for details of the batch (request is made to the banks)
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MOB ERP/IT - 15/04/2013
“R’s” transactions
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AC01
Account identifier (IBAN incorrect)
AC04
Account closed
AG01
DD forbidden on this account for regulatory
reasons
AG02
Transaction code incorrect, invalid file format
AM05
Duplication collection
BE04
Identifier of the creditor incorrect
FF01
Transaction code incorrect, invalid file format
MD01
No valid mandate
MD02
Mandate data missing or incorrect
MD06
Disputed authorised transaction
MOB ERP/IT - 15/04/2013
“R’s” transactions
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MD07
Debtor deceased
MS02
Refusal by the debtor
MS03
Reason not specified
RC01
Bank identifier (BIC) incorrect
RR01
Regulatory reason
RR02
Regulatory reason
RR03
Regulatory reason
SL01
Specific service offered by the debtor bank
MOB ERP/IT - 15/04/2013
The Pre-Notification
Pre-notification mandatory if amount and/or debit date changes
The provider sends to the debtor
a preadvice at least 14 days
before the due date.
Pre-notification

The creditor can send the pre-notification
separately or can consider the invoice as
a pre-notification.

The creditor & the debtor can agree about
another timing for the pre-notification.
Paper, e-mail, sms…

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Mandate reference : 123456789
Name of the supplier : Subscription Magazine ABC
Amount : 57,23 euros
Payment date : every year 15th of January
First payment : 15th of January 2009
MOB ERP/IT - 15/04/2013
The mandate
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.
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MOB ERP/IT - 15/04/2013
DOM 80 >< SEPA Direct debits
SEPA DD: Reimbursements are not possible
 In the DOM 80 system, you could as creditor collect the money (credit of your
account) but also reimburse your customers for any amount (debit of your
account).
 In the SEPA Direct Debit system, reimbursements are possible via “Reversal” if
same amount as for debit and same transaction reference.
Otherwise, a Credit transfer will be needed.
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MOB ERP/IT - 15/04/2013
Non-target days
 New Year's Day
 Good Friday
 Easter Monday
 1 May (Labour Day),
 Christmas Day and 26 December
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MOB ERP/IT - 15/04/2013
DOM 80 number and SEPA unique reference
► Dom 80 number can be:
Unique 3/7/2 positions: most of the banks
3/7/2 is the account number of the debtor: ING, Bank Van
Breda, others ?
SEPA unique reference provided by the creditor needs to
be different of the account number
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MOB ERP/IT - 15/04/2013
DOM 80 number & SEPA unique reference
► 1 contract = 1 mandate reference following the SEPA
Rulebooks
► 1 DOM 80 number = 1 unique mandate reference
► Quid if different contracts with the same DOM 80
number ?
► National Bank file has foreseen 6 positions beside the
3/7/2
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MOB ERP/IT - 15/04/2013
DOM 80 number & SEPA unique reference
► Example
If 1 DOM 80 number covers different contracts, the 6
positions next to the 3/7/2 can be used
3/7/2 …..1 -> 1 SEPA reference for the contract 1
3/7/2 …..2 -> 1 SEPA reference for the contract 2
3/7/2 …..3 …
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MOB ERP/IT - 15/04/2013
Latest status SEPA
1. E-mandates
2. Survey in Q4, 2012 at National level
►
Task force at EPC level
►
Task force at Febelfin level
1.
►
2. Fixed amount scheme ( or non refund SDD
scheme )
►
Code of conduct ? Scope ?
►
3. Core 1
►
Austria, Germany, Spain
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MOB ERP/IT - 15/04/2013
Conclusion
► Go for it ! Less than 200 days left
► There is no option, mandatory by law, the creditors
need to be migrated for the 1st Feb, 2014
► A lot of opportunities for your customers
► Banks and the National Bank are ready to support you
in providing more information
► Please, put the SEPA module in a current version of
the software
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MOB ERP/IT - 15/04/2013
Communication
Communication: Regulation,
considérant 15
►
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"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."
MOB ERP/IT - 15/04/2013
Communication plan NBB
(March 2012 – February 2014)
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MOB ERP/IT - 15/04/2013
Communication - Support NBB
► Toolkit
● One pager
● Videos
● PPT Presentations
● Links: ECB, EPC, Febelfin,...
► Other
● Presentations
● Documentation
● Op demand...
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MOB ERP/IT - 15/04/2013
Communicatie - Support NBB
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MOB ERP/IT - 15/04/2013
Useful SEPA links
► SEPA Belgium
(www.sepabelgium.be)
► Febelfin
(www.febelfin.be)
http://www.febelfin.be/fr/paiements
►
NBB
(www.nbb.be/sepa)
Payment systems - SEPA
► European Payments Council (EPC)
(www.europeanpaymentscouncil.eu)
► ISO 20022 standard
(www.iso20022.org)
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