Transcript SEPA Session info Big Billers

SEPA Session info Big Billers
Banque nationale de Belgique - 18/01/2013
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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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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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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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 Big Billers - 18/01/2013
SEPA Credit Transfer
Graphic 1: Transfers in SEPA format
(2008 - November 2012)
(% of the total number of bank transfers)
65%
59,80%
60%
58,03%
CEC
52,30%
55%
47,66%
Euro area CSMs
50%
44,71%
45%
45,09%
38,83%
40%
33,33%
35%
29,57%
27,16%
30%
25%
20%
15%
10%
61,25%
20,50%
16,07% 13,90%
1,91%
21,07%
30,30%
30,18%
23,71%
16,86%
6,20%
5%
0%
1,80%
Sources: European Central Bank (ECB) and the Centre for Exchange and Clearing (CEC).
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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
40%
to go
4. End Date
: 01/02/2014 no domestic payments types can be used
8
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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
●
►
Domestic payments: until 01/02/2014
Cross-border payments: until 01/02/2016
Important change with regards to Domestic Credit Transfer:
Beneficiary name is a mandatory field for all SCT payments
Reporting:
●
●
Clients should upgrade to CODA v2.3
Clients may request XML reporting as of 01/02/2014
If you are using an ERP package or accounting package, your
systems would probably be impacted.
Please contact your software provider for more information
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SEPA Direct Debit
Migration to SDD in Belgium
(July 2011 - July 2012)
100
98,17%
97,69%
97,34% 97,56%
96,70%
87,08%
90
85,79%
80,52%
84,71%
87,56%
83,65%
84,04%
86,55%
80
70
% Volumes
60
50
40
30
18,98%
20
10
0
12,43% 13,61%
1,38%
0,45%
jul/11
1,74%
0,56%
aug/11
2,10%
0,56%
sep/11
% SDD CORE
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1,93%
14,72%
11,89%
15,66%
15,32% 12,86%
2,65%
0,51% 0,65%
oct/11 nov/11
0,51%
0,49%
0,60%
0,58%
0,55%
0,69%
0,65%
0,59%
dec/11
jan/12
feb/12
mar/12
apr/12
may/12
jun/12
jul/12
% SDD B2B
% legacy direct debit (DOM80)
MOB Big Billers - 18/01/2013
SDD transactions in Europe
14
2,50
12
10
1,50
8
6
1,00
% share of SDDs
Transactions (millions)
2,00
4
0,50
2
0
0,00
Volume
Share SDD
Source: ECB
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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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(Provisional) plans for migration
towards the SDD by some of the big
billers
2009 2010
November
April
2011
2012
2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
01/02 2014
Start
SDD
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End date
Regulation
MOB Big Billers - 18/01/2013
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 Big Billers - 18/01/2013
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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Mandate management - 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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Mandate management - Creditor ID
New SDD creditor:
Creditor receives Creditor ID from the bank (in the form of a certificate):


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Positions 3 and 4: Check digit (does not apply on ‘Business Code’)
Positions 8 to 35 (max.): Country-specific ID
a) either identical to the creditor's Belgian business number (10
positions)
b) or ‘bank code’ + ‘D’ + a bank counter (max. 24 positions)
MOB Big Billers - 18/01/2013
Mandate management - Changes
SDD rulebook says for changes in:
1. Unique Mandate Reference
2. creditor identification
3. creditor name
4. debtor’s account number
A.
B.
to another number within the same bank
to another number with another bank
The creditor must report the amendments to the Creditor bank as
part of the next collection (as a “mandate amendment”).
Additional attention point: in case 4.B, the creditor must send the
next collection as a “FIRST”.



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The paper mandate must be updated as well. Necessary to counter refund requests!
B2B? a new confirmation is needed for all amendments except n°3 (Febelfin
Consensus)
Creditor to evaluate if new mandate might not be more opportune instead of working
with a mandate amendment
MOB Big Billers - 18/01/2013
SDD in detail - Prenotification
The creditor needs to notify the debtor of an
upcoming collection
► Initiative of the European Payments Council, supported by the EC
and the ECBNo earlier than 1 year and no later than 14 days
before the execution date
► based on an invoice or similar document
Possible deviations:
► Agree a shorter period than 14 days with the debtor
► in a separate agreement between the debtor and creditor
► using a clause in the mandate (clearly separated from the
compulsory parts)
► a single payment plan instead of individual invoices for recurring
payments
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SDD in detail - Timeline
D-14
D-5
D-2
Pre-notification
one off/first
Recurrent Due date =
settlement
D
D+5
D+8w
D+13m
return
refund
refund
unauthorized
SDD Core
D-1 D
D-14
Due date =
settlement
Pre-notification
D+2
D+13m
return
refund
unauthorized
SDD B2B
D-5
Pre-notification
D-1
D
D+1
D+8w
D+13m
Pivot date
= due date
Settlement/unpaid
refund
refund
unauthorized
DOM80
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2
SDD in detail - R transactions
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 Big Billers - 18/01/2013
SDD in detail - R transactions
► The refund right is unconditional
The debtor requests the refund without having to give a reason
and the debtor's bank immediately reimburses the debtor without
any loss to the debtor.
► The creditor will
● be debited for the original amount + a refund compensation
fee
● see the result in his statements / CODA reporting incl. the
original reference
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Starting with SDD
4 possible scenarios:
► Migration from DOM80 to SDD (Core)
► Transition from DOM80 to SDD B2B
► Starting with SDD Core
► Starting with SDD B2B
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Starting with SDD - Migration from
DOM80 to SDD Core
► Sign creditor contract
► Manage mandates
● Avoid creation of new DOM80 mandates if needed
● Overview of existing DOM80 mandates (incl. IBAN/BIC) from
NBB via your bank

assign unique mandate references
► Send collections
● Send prenotification (invoice)
● Send collection file to the bank (mandate lifecycle!)
► Follow up on collections
● Once the collection has been booked, the mandate has been
irrevocably migrated.
► Cancellation of the DOM80 creditor number
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Starting with SDD - Transition from
DOM80 to SDD B2B
Impossible to migrate; new mandates are
required!
► Reachability check
http://epc.cbnet.info/content/adherence_database
► Sign creditor contract
► Manage mandates
● avoid creation of new DOM80 mandates if needed
● create new mandates

+ inform debtor about the need to confirm the mandate
► Send collections
● send prenotification (invoice)
● send collection file to the bank (mandate lifecycle!)
► Follow up on collections
► Cancellation of the DOM80 creditor number
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Starting with SDD - SDD core
► Sign creditor contract
► Manage mandates
● create new mandates
► Send collections
● send prenotification (invoice)
● send collection files to the bank (mandate lifecycle!)
► Follow up on collections
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Starting with SDD - SDD B2B
► Reachability check
http://epc.cbnet.info/content/adherence_database
► Sign creditor contract
► Manage mandates
● create new mandates
● inform debtor about the need to confirm the mandate
► Send collections
● send prenotification (invoice)
● send collection files to the bank (mandate lifecycle!)
► Follow up on collections
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The SDD migration project
Do not underestimate required time & efforts
Inventory
Planning
Preparation
Testing
Implementation
Procedures
Migration plan
SDD contract
Tools
Inform debtors
Involved parties
Communication
plan
Manage
mandates
Collection files
Send
collections
Databases
Training plan
Collection
set up
Reporting
Follow up
IT architecture
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Business
as usual
Adapt
procedures
MOB Big Billers - 18/01/2013
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 Big Billers - 18/01/2013
Communication plan NBB
(March 2012 – February 2014)
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Communication - Support NBB
► Toolkit
● One pager
● Videos
● PPT Presentations
● Links: ECB, EPC, Febelfin,...
► Other
● Presentations
● Documentation
● Op demand...
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Communicatie - Support NBB
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Useful SEPA links
► SEPA Belgium
(www.sepabelgium.be)
► Febelfin
(www.febelfin.be)
“Mijn geld en ik" – "Betalingen van a tot z – Betalen in de praktijk”
►
NBB
(www.nbb.be/sepa)
“Betalingssystemen – SEPA”
► European Payments Council (EPC)
(www.europeanpaymentscouncil.eu)
► ISO 20022 standard
(www.iso20022.org)
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