 Safe and efficient payments, throughout Europe  The Single Euro Payments Area (SEPA) is a project to harmonise the way we make and process retail payments in euro. The goal is to make payments in euro and across Europe as fast, safe and efficient as national payments are today. SEPA enables customers to make cashless euro payments to anyone located anywhere in Europe, for example by credit transfer, direct debit or debit card.

 All countries within the European Union (EU)  Iceland  Norway  Liechtenstein  Switzerland  Monaco

 2001 : European regulation on cross-border payments in euro (Regulation No 2560/2001) stipulated that payment charges for cross-border euro payments (by credit transfer or payment card) within the EU should be the same as for corresponding domestic euro payments.  2002 : Set-up of the European Payments Council (EPC)  2007 : Adoption of the Payment Services Directive as the legal basis for retail payments in Europe.  2008 : Start of SEPA credit transfers  2009 : Start of SEPA direct debits  2012 : Regulation No 260/2012entered into force, which establishes technical and business requirements for credit transfers and direct debits in euro.

 The European banking industry established the European Payments Council (EPC) in 2002 as its coordination and decision- making body on issues relating to payments. The EPC consists of 74 members representing banks, banking communities and payment institutions. More than 360 professionals from 32 countries are directly involved in the work of the EPC. The European Central Bank (ECB) takes part as an observer in the EPC’s working and support groups.

 Design - The European Payments Council (EPC) established the rules and practices for the new payment schemes and selected the standards to be applied.  Implemantion - Each participating country set up national implementation and The European Commission provided a harmonised legal basis for the payments market in Europe in the form of the Payment Services Directive.  Migration - Providers and users of payment services switch over to SEPA payment instruments.

 credit transfers  direct debits  payment cards

 A credit transfer is a payment initiated by the payer. The payer sends a payment instruction to his/her payment service provider. The payer’s payment service provider moves the funds to the payee’s payment service provider.

 A direct debit is a transfer initiated by the payee, that is the recipient of a payment, via his/her payment service provider. Direct debits are often used for recurring payments, such as utility bills. They require a pre-authorisation (“mandate”) from the payer. Direct debits are also used for one-off payments. In this case, the payer authorises an individual payment.

 Types of payment cards  Debit cards Debit cards allow the cardholder to charge purchases directly and individually to an account.  Credit cards Credit cards allow purchases within a certain credit limit. The balance is settled in full by the end of a specified period. Alternatively, it is partly settled. The remaining balance is taken as extended credit on which the cardholder must pay interest.

 In the Czech republic offers a SEPA payment six banks  Unicredit bank  Komerční banka  J&T  Citi bank  Česká spořitelna  ČSOB

 Currently the SEPA initiative involved 4,500 banks. European clearing house (EBA clearing) daily realized 470,000 SEPA payments in the amount of nearly € 3 billion

 What do you think about SEPA?  Is the SEPA for retail clients or for companies (business)?