SEPA Migration Checklist

Dear client,

Single Euro Payments Area (SEPA) standards become mandatory across 17 Euro member states on 1 February 2014. If your organisation initiates Euro ACH payment or direct debits, action needs to be taken to ensure compliance. This email series is intended to provide you with relevant information and practical guidance.

Can I use the SEPA Direct Debit B2B scheme to collect from Micro-enterprises?

  • Micro-enterprises - The definition of Micro-enterprises as per EC Recommendation (2003/361/EC Article 2(1) and (3) of the Annex) is: an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.
  • SEPA rules - In the SEPA B2B rulebook it states that the B2B scheme can only be used to collect from businesses, and specifically parties who have opted out from refund rights, as defined by Applicable National Law. According to Payment Services Directive (PSD), a customer is defined as consumer or business at a practical level according to account set up at the customer’s bank.
  • National Laws - A Debtor Bank can only offer the B2B Scheme to a Debtor who is a ‘business’ under the national law of the place where that Debtor Bank is providing the payment service. A Customer may only use the Scheme as a Debtor, when he/she is authorised by national law to opt-out from the refund right.

    The PSD contains a Member State derogation that allows Member States to require that Micro-enterprises should be treated as consumers.
  • Countries where Micro-enterprises are treated as businesses, meaning that the SDD B2B scheme can be used to collect funds from these small businesses - Austria, Belgium, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Slovakia, Spain
  • Countries where Micro-enterprises are treated as consumers, meaning that the SDD B2B scheme cannot be used to collect funds from these small businesses - Ireland, Portugal, UK

SEPA has the ability to deliver real value to your organization. Citi is committed to delivering solutions that enable you to capitalize on the benefits that SEPA offers.

To put our expertise to work for you today, please contact your Citi representative or visit our SEPA website at www.transactionservices.citi.com/SEPA

Regards,
Treasury and Trade Solutions.

Treasury and Trade Solutions

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