Search
 

6-Month Transition Period for SEPA

European Commission avoids officially delaying SEPA compliance deadline, but proposes allowing alternative payment methods for euro-denominated transactions until August 1.

By Treasury & Risk Staff | Updated on January 09, 2014

For months, media fretted that companies would not be prepared to comply with the Single Euro Payments Area (SEPA) by the February 1, 2014, deadline—and many analysts predicted that the European Commission (EC) would delay the deadline. Today, less than a month before SEPA formally takes effect, unprepared companies have been granted a reprieve. Although the EC has not officially changed its compliance deadline, it is proposing a transition period of six additional months during which credit transfers and direct debits that are not SEPA compliant will still be acceptable for payments within the Eurozone.

Said Michel Barnier, internal market and services commissioner for the EC: “As of today, migration rates for credit transfers and direct debits are not high enough to ensure a smooth transition to SEPA despite the important work already carried out by all involved. Therefore, I am proposing an additional transition period of six months for those payment services users who are yet to migrate. In practice this means the deadline for migration remains 1 February 2014, but payments that differ from a SEPA format could continue to be accepted until 1 August 2014. I regret having to do this, but it is a measure of prudence to counter the possible risk of disruption to payments and potential consequences for individual consumers and SMEs [small to midsize enterprises] in particular.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.