Payments: Commission and ECB support launch of pan-European SEPA Direct Debit
- European Union
- 09/16/2008
- Roschier, Attorneys Ltd. - Finland
The Commission and the European Central Bank (“ECB”) have encouraged the European Payments Council (“EPC”) to proceed with the launch of the SEPA Direct Debit scheme. This scheme will enable bank customers to arrange direct debits to pay companies with bank accounts in any of the 31 European states participating in SEPA (Single Euro Payments Area). Currently there are separate national direct debit schemes and it is not possible to establish direct debit arrangements across borders in Europe.
According to the Commission and the ECB, the SEPA Direct Debit Scheme includes potential economies of scale and increased competition advantages that will drive efficiency and innovation in payments, and thus benefit European consumers and companies. The Commission and the ECB are also prepared to support an objectively justified ‘multilateral interchange fee’ for cross border direct debits within the SEPA scheme, but only for a limited transitional period. After the transitional phase there would no longer be any transaction-based multilateral interchange fee for direct debits either at the national or cross border level.
Source: Commission Press Release 4/9/2008
