What is SEPA?

SEPA stands for "Single Euro Payments Area". The purpose of SEPA is to enable citizens and companies to settle payments by using identical payment instruments (cards, transfers, direct debits) across the 27 countries of the EU and Iceland, Switzerland, Norway and Liechtenstein.


What will change for you?

Thanks to SEPA, there will no longer be a distinction made between national and intra-European payments in euros.

The three payment instruments concerned are:

• European credit transfer

• European direct debit

• Payment cards

European Credit Transfer

The SEPA Electronic Credit Transfer is a new payment tool which will replace the current euro credit transfer. The European credit transfer has the following characteristics:

• It enables transfers to be carried out in all the countries of the SEPA Zone (the 27 EU member states as well as Iceland, Liechtenstein, Norway and Switzerland).

• A combination of IBAN and BIC (Swift) codes is used as a single identification system for the accounts linked to the transaction.

• The transferred amount will be available in the recipient's account after a maximum of 3 days.

• The transaction amount is transferred in its entirety and transaction price rates are paid separately.

• The Originator Reference (reference chosen by the originator)

• More space for longer communication (4x35 characters)

In terms of security and ease of use, Belgian payment systems are world leaders. That is why Belgian banks have taken a few additional measures in order to maintain this quality and to support the switch to SEPA. The main ones are:

• As before, maximum timeframe of 1 day between debit and credit for domestic payments.

• As before, structured communication

• In Belgium, the payment transition phase from the current system to European credit transfers will begin on 28/01/2008 and will last until the end of 2010.

Also in Belgium, a new European paper credit transfer order has been developed.

European Direct Debit

The transition period from the current Belgian direct debit to the European direct debit will not begin until the end of 2009.

Here are a few characteristics of the new European direct debit:

• The entire SEPA zone (the 27 EU member states as well as Iceland, Liechtenstein, Norway and Switzerland) is concerned.

• Both recurring and one-off payments in euros are possible.

• The IBAN and BIC (Swift code) are used as a single identification system for accounts linked to the transaction.

• Guaranteed consumer refund for up to 6 weeks after a disputed collection.

• Creditors can now five a bank all their collection files, including customers from other banks in the SEPA zone.

Payment cards

Payment cards will be harmonized on a European scale. National debit cards which exist in the various European countries will be replaced by cards which meet SEPA requirements. This means that payment cards will be accepted everywhere in Europe as they are in their own country. In Belgium, the Bancontact/Mister Cash system (managed by Banksys) will remain in application for a given period. The various alternatives which meet the SEPA requirements are currently under consideration.

IBAN/BIC

What is a BIC (Bank Identifier Code)?
BIC is an international code that banks use for financial transactions. Every bank has their own BIC. In this way, international payment orders automatically arrive at the right bank. The BIC is also called a SWIFT address or SWIFT code.

What is an IBAN (International Bank Account Number)?
The IBAN identifies each account holder, including their bank and country of establishment. Thanks to the specific IBAN, banks can automatically make payments, with no need for additional information.

• You can find your IBAN and ING's BIC on your account statements.

• You may also calculate it using this conversion module

Would you like to know more?

ING is paying close attention to the SEPA file and will keep you informed of evolutions.

You can also read more on this subject at www.sepabelgium.be