From 1 February 2014, national direct debit systems will be replaced by SEPA direct debits. Payments organisations based in SEPA countries will carry out their euro-denominated payments and collections under the same conditions across the SEPA zone and just as easily as in their own country.

Companies will be able to improve their financial value chain and move towards more centralised cash management thanks to standardised rules, faster payments and simplified cash flows.

What implications does SEPA have?
SEPA introduces more efficient payment systems and offers concrete benefits for both the economy and society in general. It will affect everyone, from individuals to companies.

The implications for companies are more wide-ranging as they involve changes to their systems and working practices. The significance of these implications will depend on the size of the company, its working methods, the nature of its operations and the payment systems it uses. The challenge therefore lies in completing a successful transition to a 100% SEPA environment without any data loss and without losing control of the situation, while taking advantage of the benefits of this change. A major element of SEPA standardisation is the Europe-wide replacement of account numbers with IBAN (International Bank Account Number) and BIC (Bank Identifier Code) codes. This change has already been implemented in Luxembourg.
Systems all over Europe must therefore be adapted in order to be able to process SEPA payments and direct debit instructions.

Tools to help companies
ING Commercial Banking has made a whole host of innovative tools available to its clients on its website, www.ingsepa.com:

• an interactive e-learning module entitled “SEPA Get Ready” to help them prepare for the changes SEPA will bring. The training course includes a number of different modules and the level of information provided ranges from basic to in-depth;
• an iPad app (ING CB Insights) available for download from the App Store;
• several detailed informational brochures on the subject, including a plan of approach for SEPA;
• a series of FAQs on the subject, divided into categories (general, SEPA European transfers, SEPA direct debit, formats, reporting, mandates, channels).

For more information, visit www.ingsepa.com.