SEPA Migration Checklist
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.
How do I assess my payment flows and account usage?
Understanding your existing Euro ACH and Direct Debit transactions is an important step in migrating to the SEPA Credit Transfer and SEPA Direct Debit schemes. Below are some important key activities to cover:
- Document current payment and collection activity: It is important to identify and categorise the payments and collections you initiate today. On the payment side, typical categories include vendor, payroll and tax payments; however certain organisations may initiate payments to customers and other third parties. Additionally, your organisation may be paying invoices today by direct debit and may be asked by your suppliers to move to the SEPA Direct Debit B2B scheme. On the collections side, understand your customer base (Consumer vs. Business) and how you receive payments today – via a direct debit collection or incoming transfer. This information will give you a picture of your activities today and enable you to make decisions on which SEPA schemes to utilise.
- Identify accounts in scope: List the accounts you use today to manage your Euro payments and collections. You should consider the location and ownership of these accounts, while also identifying how these accounts are used today – i.e. whether accounts are used for both payments and collections, or are sole usage.
- Understand local activity: Paper based instruments, cash and a number of local instruments are outside the scope of the SEPA however it is important to understand your usage of these instruments should you consider moving account locations.
- Assess systems: Identify which systems, connectivity and file formats are used today to initiate your Euro payments and collections. You may use a single ERP, a number of ERP instances or utilise local systems. Having this view will allow you to assess technology changes and schedule resources. It is important to also look at systems which hold account information such as HR and customer data systems that may also need to be updated.
- Bring it together: Create an overall picture of impacted payment and collection flows, systems, accounts and processes. Including volumes, file formats and connectivity will give you a consolidated view which can be used to discuss your SEPA project internally and with your partner bank.
SEPA has the ability to deliver real value to your organization. Citi is committed to delivering solutions that enable you to capitalise 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
We have an upcoming SEPA webinar in March – to register your attendance visit: https://www.citibank.com/transactionservices/home/about/online_academy/form.jsp
- SEPA – Practical Steps to Meet the Deadline
14th March 2013 at 3pm GMT
Citi Transaction Services
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