SEPA

ING helps you switch over to SEPA (Single Euro Payments Area). The ultimate aim is an integrated payment area in the 27 EU countries, Iceland, Liechtenstein, Monaco, Norway and Switzerland. More precisely, that means that euro payments in those countries will be made and received identically in the same way.


 

  • What is the impact of SEPA?

    The SEPA arrangements have an impact on both companies and consumers. The most important aspects are listed for you below:

    • Bank accounts will have an IBAN format.
    • The SEPA Credit Transfer will definitively replace the domestic transfer as from 1 February 2014.
    • The SEPA Direct Debits will make it possible for all direct debit payments to be processed correctly for the entire euro zone using a single account.
  • ING is ready for SEPA

    ING's payment services obviously comply with all statutory requirements. You can easily manage your payments further via Telelink@Isabel, SWIFTNet, ING FTP Service and Business'Bank. If you have any further questions, contact your ING liaison officer.

  • What do you need to do?

    To collect receivables by SEPA Direct Debits or pay by SEPA Credit Transfer: your administration and accounting systems must support XML for SEPA. The use of XML format (ISO 20022) is compulsory for SEPA payments. It is also important to reconcile payments in your accounting system. Ask your software supplier for any advice.

    To collect receivables by SEPA Direct Debits: you must set up new processes for the management of mandates and for the archiving and dematerialisation of mandates. A new mandate is not required to switch to a standard SEPA Direct Debits. You must ask your debtor to sign a new mandate in case of a B2B mandate.

    To pay debts by SEPA Direct Debits:

    you must sign a SEPA mandate and return it to your supplier. Note that this mandate cannot be opened via Business'Bank or Telelink@Isabel. The statement in case of direct debit will mention that the payment will be made by means of a SEPA Direct Debits. As the debtor, you can manage your own mandates and, for instance, set a maximum amount for a specific mandate.
    There will be an additional impact depending on the type of SEPA mandate for the SEPA Direct Debits:

    • Core (standard - for consumers and non-consumers):
      • Existing mandates can be migrated without any intervention from you or the creditor.
      • You can request a refund via the interactive channel or via your ING liaison officer: up to 8 weeks after payment (in case of authorised transactions) or up to 13 months in case of an invalid SEPA mandate.
    • Business-to-Business (B2B - only for non-consumers):
      • You will have to confirm the mandate details by providing a signed copy of the mandate to your bank.
      • You are not entitled to any refund.
  • ING advises you

    ING will gladly advise you on any changes that are needed to make efficient payments in the SEPA zone. We also offer useful instruments to facilitate the transition to SEPA.

    On ingsepa.com you will find:

    What is the impact of SEPA on your business? ING figured it out for you. Read our explanatory brochures.

Which countries are part of SEPA? Which countries are part of SEPA?

There are currently 33 countries in the Single Euro Payments Area (SEPA): the 28 Member States of the European Union, as well as Iceland, Norway, Liechtenstein, Monaco and Switzerland.


What is the impact of SEPA on my reporting? What is the impact of SEPA on my reporting?

The migration to SEPA has implications for reporting. Read our detailed brochures for more information:


Which ING accounts (from which countries) can I use to initiate SEPA payments in Isabel 6 and Telelink 6? Which ING accounts (from which country) can I use to initiate SEPA payments in Isabel 6 and Telelink 6?

In Isabel 6, you can initiate SEPA payments from accounts (ING originators) in all countries. You can also do this in Telelink 6 using the Import/Export module.


What are the requirements in order for a payment to be considered as a SEPA Credit Transfer? What are the requirements in order for a payment to be considered as a SEPA Credit Transfer?
  • The payment instruction must be made out in euros.
  • Both the originator's and the beneficiary's accounts must be domiciled within SEPA.
  • The IBAN format must be used for the originator's and the beneficiary's accounts.
  • The BIC identification code must be used. However, as from 1 February 2014, this requirement no longer applies to transactions between 2 Belgian accounts.
  • The costs must be shared. They are therefore charged to the originator and the beneficiary by their banks separately and individually.

Can there be empty fields in my SEPA payments XML files? Can there be empty fields in my SEPA payments XML files?

No. This is strongly discouraged as it could lock the payment file. Detailed information about the XML message to initiate a payment instruction (version 3.0) is available on Febelfin's website (PDF).


Which tags should I use in my SEPA payments XML file if I want to be debited all at once or transaction by transaction? Which tags should I use in my SEPA payments XML file if I want to be debited all at once or transaction by transaction?

You should use the Batchbooking posting parameter in your XML file. The value of the Batchbooking tag can be "TRUE" or "FALSE" or the tag may be absent.

  • For the originator's account to be debited all at once, enter the value "TRUE" or do not enter any value (leave out the tag).
  • For the originator's account to be debited transaction by transaction, enter the value "FALSE".

Detailed information about the XML message to initiate a payment instruction (version 3.0) is available on Febelfin's website (PDF).


Can SEPA transactions be executed any day of the year? Can SEPA transactions be executed any day of the year?

SEPA transactions are executed on working days of the Clearing House of the Euro Banking Association (EBA). This clearing house is open on all Target days. This means that it is closed on Saturdays, Sundays, New Year's Day, Good Friday, Easter Monday, 1 May, Christmas Day and Boxing Day. Belgian credit transfers (over STET) are subject to Belgian closing dates


I need to make an urgent SEPA Credit Transfer. What do I need to do? I need to make an urgent SEPA Credit Transfer. What do I need to do?
  • In the XML payment file, the “Priority” element indicates the degree of urgency. The value needs to be set at “HIGH” for the payment to be processed urgently.
  • Intracompany payments are always processed with high priority when the value “INTC” in indicated in the “Category Purpose” field.
  • Salary payments are always processed with high priority if they are delivered in a M-ECT file and when the value “SALA” is the “Category Purpose” field.
  • Single SEPA salary payments are not processed with high priority by default. If you wish to do so, you must indicate the value “HIGH” in the “Priority” field.

I would like to test the format of my XML file. What do I need to do? I would like to test the format of my XML file. What do I need to do?

ING provides you with a tool (user name: ING10 and password: Format10) for testing and validating payment files in XML format.


I would like to test my XML file in production based on a small amount (penny test). What do I need to do? I would like to test my XML file in production based on a small amount (penny test). What do I need to do?

To test the complete cycle of a transaction in production, we recommend that you test a small number of transactions between 2 accounts belonging to the company for a small amount (penny test). This will ensure that your test takes place in a protected environment, including initiation and reporting.

SEPA Credit Transfer

Create a file for 2 payments, making sure you include the relevant reference information.

  • Payment with free communication
  • Payment with structured communication

This information enables your Finance and Accounts department to validate the report.

Once the file has been created, it can be uploaded to the desired payment package and sent to the bank like a normal payment file. There is no need to inform the bank.

SEPA Direct Debit

Sign a mandate for the type of direct debit you require.

  • Core mandate: no interaction is required with a bank
  • B2B mandate: the debtor must confirm the mandate with their bank

The overall scenario involves 2 steps.

  1. We recommend that you create a file for 2 payments with the appropriate type of direct debit and sequence type "First". Once the file has been created, it can be uploaded to the desired payment package and sent to the bank.

    Tip: non-execution can be a major factor in the test procedure. It is preferable to have 1 transaction executed correctly and 1 transaction rejected.

    An inexecutable or unpaid transaction can be useful for the process of creating the report.

  2. The second step involves creating a file with 2 transactions based on the same type of direct debit and the sequence type "Recurrent" for the direct debit accepted in the first step. Once the file has been created, it can be uploaded to the desired payment package. There is no need to inform the bank. Make sure you complete the compulsory fields to facilitate reconciliation.

What are the cut-off times for SEPA Credit Transfers? What are the cut-off times for SEPA Credit Transfers?

Detailed information about cut-off times (PDF) is available on our website.


What is the difference between the Core mandate and the B2B mandate for SEPA Direct Debits? What is the difference between the Core mandate and the B2B mandate for SEPA Direct Debits?

The Core mandate is designed for both consumers (private use) and non-consumers (professional use). Its main features are:

  • It is possible to request up to 8 weeks after the payment, a refund without giving any specific reason.
  • If the payer disputes that the creditor has a valid mandate, the payer can reclaim a refund until 13 months after the payment.
  • The mandates are from now on managed by the creditor. The banks have no paper version of the mandate.
  • Existing direct debit mandates (DOM80) can be migrated to a SEPA mandate without the involvement of the debtor. The creditor is in charge of the communication towards its debtors.
  • The debtor does not need to confirm the mandate with their bank. It is sufficient to send a signed mandate to the creditor.

The B2B mandate is designed for non-consumers (professional use). Its main features are:

  • The debits related to the B2B mandate are refundable until 8 weeks after the debit
  • The debits related to the B2B mandate may only be refunded in case of fraud. This can take place up to 13 months after the execution of the debit. The debtor must sign this mandate and send it to the creditor. The creditor must manage and archive an original copy of the mandate.
  • The debtor must confirm this mandate with their bank.

    What is the procedure for authorising and receiving payments for the SEPA Direct Debit Core mandate? What is the procedure for authorising and receiving payments for the SEPA Direct Debit Core mandate?

    Debtor side:

    • The customer buys goods/services from the supplier.
    • If the client would like to pay his supplier through direct debit then he must contact the creditor and settle this with him.

    Creditor side:

    • The creditor sends a contract/invoice and a mandate form to their customer.
    • The creditor updates the their records and electronically stores the mandate.
    • The creditor sends a payment request to their bank.

    What is the procedure for authorising and receiving payments for the SEPA Direct Debit B2B mandate? What is the procedure for authorising and receiving payments for the SEPA Direct Debit B2B mandate?

    Debtor side

    • The customer buys goods/services from the supplier.
    • If the client would like to pay his supplier through direct debit then he must settle this with the creditor and the client must also confirm the mandate with his bank.

    Creditor side

    • The creditor sends a B2B mandate to the debtor.
    • The creditor scans in the mandate and archives it electronically.
    • The creditor sends a payment request to their bank.

    What are the compulsory fields in a SEPA Direct Debit mandate? What are the compulsory fields in a SEPA Direct Debit mandate?

    The SEPA Direct Debit mandate form must contain the following elements:

    • An indication of whether it is a Core or B2B mandate
    • The legal text required for a Core or B2B mandate
    • Details of the creditor (name, address and identifier of the creditor)
    • Details of the debtor (name, address, IBAN and BIC code)
    • The mandate reference. This allows a specific mandate to be linked to orders by the same mandate holder. You determine the reference of your mandate. There is only 1 condition: the reference linked to your creditor identifier must be unique and cannot contain more than 35 characters. You cannot use the same reference for Core and B2B mandates for SEPA Direct Debits. You must communicate this unique reference to your customers.
    • An indication of whether it is a one-off direct debit or a series of recurrent direct debits
    • A description of the underlying contract. According to the Payment Services Directive (PSD), there is a legal obligation in Belgium to add the field "Purpose of mandate" under the section of the mandate headed "Mandate identification".