S.e.p.a.

Gitane

I recently transferred money from France to Spain at no charge. This was fairly easy as both countries are in the Eurozone the only drawback was I had to visit the bank; this will soon change and I will be able to do it 'on line'.
I believe the system (Single European Payment Area) will be extended to UK and will embrace the exchange rate. Does anyone know when?:beer:

grumbler

Gitane wrote: »

...I believe the system (Single European Payment Area) will be extended to UK and will embrace the exchange rate.

Any real grounds for this belief?

pompeyred

The high level scope of SEPA in the UK only touches payments made in the Euro currency but any business which makes payments from the UK in that currency must be able to process to SEPA authority. It all pretty much boils down to sending payments with a full and valid IBAN and BIC (something which ALL UK banks have had the ability to do for a very long time).

At a cinsumer level, it's actually a very good idea and I can't see why we wouldn't simply adopt it. For users it opens up banking competition right across Europe so we in the UK would not be tied to a physical UK bank if we thought we might get a better deal from one of our European equivalents.

pmduk

The major obstacle to opening banking competition is our use of the pound and the conversion charges between currencies.

jamesd

grumbler wrote: »

Any real grounds for this belief?

Other than things like the mandatory turning off of the UK Direct Debit system no later than 31 October 2016, replacing it with the pan-European SEPA Direct Debits system?

Gitane wrote: »

I believe the system (Single European Payment Area) will be extended to UK and will embrace the exchange rate. Does anyone know when?:beer:

It can be used now if the UK bank supports it. It's currently at their discretion. BIC and IBAN have been provided on bank statements in the UK for years.

If a source or destination account is in Pounds one or two currency conversions will be needed because the SEPA system carries out all transfers in Euros. Now might not be a bad idea to ask a bank how it plans to charge for this for domestic transactions.

agrinnall

jamesd wrote: »

Other than things like the mandatory turning off of the UK Direct Debit system no later than 31 October 2016, replacing it with the pan-European SEPA Direct Debits system?
It can be used now if the UK bank supports it. It's currently at their discretion. BIC and IBAN have been provided on bank statements in the UK for years.

That seems like it will be a major issue for UK account holders with DDs taken by UK organisations (no doubt the vast majority). I quote from your link:

Currency - all SEPA Direct Debit transactions happen in Euros (even if the relevant accounts aren't in Euros). Any currency exchange required is up to the payer's and collector's banks.

Gitane

grumbler wrote: »

Any real grounds for this belief?

Bit long winded, lawyers would have a field day but,


REGULATION (EC) No 924/2009

Article 3
Charges for cross-border payments and corresponding national payments

1. Charges levied by a payment service provider on a payment service user in respect of cross-border payments of up to EUR 50 000 shall be the same as the charges levied by that payment service provider on payment service users for corresponding national payments of the same value and in the same currency.
2. When assessing, for the purpose of complying with paragraph 1, the level of charges for a cross-border payment, a payment service provider shall identify the corresponding national payment.
The competent authorities shall issue guidelines to identify corresponding national payments where they consider it necessary to do so. The competent authorities shall actively cooperate within the Payments Committee established in accordance with Article 85(1) of Directive 2007/64/EC to ensure the consistency of guidelines for corresponding national payments.
3. Where a Member State has notified its decision to extend the application of this Regulation to its national currency in accordance with Article 14, a national payment that is denominated in the currency of that Member State may be considered as corresponding to a cross-border payment that is denominated in euro.
This Regulation shall not apply to currency conversion charges.

I don't live in the euro area. What will SEPA mean for me?
SEPA will still bring you benefits if you live in an EU country that does not use the euro. When you transfer money from your national currency to a!euro area country, you will still benefit from the same improved services and rules information that apply to pure euro payments, although currency conversion may mean that your payment cannot be made quite as fast as a pure euro payment.

Extract from Questions and answers on SEPA:eek:

Archi_Bald

Am I being particularly thick or is there nothing positive for UK account holders from replacing the existing DD with SEPA DD?

System

The UK is already part of SEPA.

The relevant EU regs that give the free transfers only relate to Euro transactions. Non-Euro member states have to 'opt in' for it to apply to their currency [as Sweden has with their crowns].

The UK would either need to adopt the Euro as its currency or 'opt in' Swedish style for it to apply to GBP.

Gitane wrote: »

I believe the system (Single European Payment Area) will be extended to UK and will embrace the exchange rate. Does anyone know when?:beer:

jamesd

Archi_Bald wrote: »

Am I being particularly thick or is there nothing positive for UK account holders from replacing the existing DD with SEPA DD?

Several:

1. The IBAN has two check digits that are calculated to catch all wrong single digit errors, most swapping of two digit errors, a lot of two wrong digit errors, as well as a range of other mistakes. This means that it will be harder to accidentally type a wrong account number and get it accepted. Since consumers are liable if they give a wrong number for an online banking transfer this should save money for consumers who make mistakes.
2. Possibly lower Euro conversion costs if all payments involve conversion to and from Euros.
3. Possibly lower banking prices due to increased international banking competition.
4. Greater ease of sending money to other SEPA area countries.

JuicyJesus

jamesd wrote: »

Other than things like the mandatory turning off of the UK Direct Debit system no later than 31 October 2016, replacing it with the pan-European SEPA Direct Debits system?

Having read that, and being someone who actually likes the EU as an entity - that is a mental idea.