17th July 2013
Minister for Small Business, John Perry T.D., has today Tuesday advised SMEs to start their Single Euro Payments Area (SEPA) preparations now, to ensure they are SEPA compliant before 1st February 2014.
16th July 2013
Minister for Small Business, John Perry T.D., has today [Tuesday] advised SMEs to start their Single Euro Payments Area (SEPA) preparations now, to ensure they are SEPA compliant before 1st February 2014.
SEPA is an initiative within a 32-country European zone, which will mean a common way of processing electronic credit transfers, payments and direct debits. It will change the way euro electronic payments are processed across Europe. It will mean that businesses can make and receive payments seamlessly, collect a direct debit on any euro account or make a credit transfer to any euro account within SEPA.
Minister Perry was speaking following a recent presentation to the Advisory Group for Small Business on the implications for businesses if they are not SEPA compliant by the 1st February 2014.
On the 1st February 2014 all national direct debits and credit transfers must be SEPA compliant. This will include everything from staff payroll, to paying creditors or receiving a euro electronic payment from customers within SEPA. Existingnational credit transfers (CT) and Direct Debits (DD) will be replaced by pan-European SEPA equivalents (SDD and SCT) and national sort codes and account numbers will be replaced by an International Bank Account Number (IBAN) and a Bank Identifier Code (BIC) for all euro electronic payments.
“SEPA will make banking systems compatible so that once you make a payment, or anybody in the 33-country area makes a payment, it’s guaranteed to arrive in the beneficiary’s account the next day. Some banks have introduced SEPA capability to their customers already in advance of the deadline of 1st February, 2014.
“A key benefit for businesses will be faster settlement and simplified processes that will help to improve their cash-flow and potentially help to reduce their costs. The last thing that a business will want to face after the SEPA deadline is having difficulty paying their suppliers, or receiving payments from their customers.
“I urge all businesses to act now and contact their bank and software provider to help ensure that their pay-roll, direct debit and accounting systems are SEPA ready before 1st February 2014 so that they are able to make euro electronic payments after that date. Each bank will be able to advise their clients on any actions that need to be taken to make sure that each business is fully SEPA-compliant in good time for the 1st February 2014 deadline. For further details see www.readyforsepa.ie “
ENDS
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