SINGLE EURO PAYMENTS AREA (SEPA)

SEPA comes into effect on 1st February 2014. From that date existing national payment schemes will be closed down and euro electronic payments will be processed through new SEPA schemes.

It will standardise euro electronic payments across Europe.

It will mean that you 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.

National sort codes and account numbers will be replaced by an International Bank Account Number (IBAN) and a Bank Identifier Code (BIC).

The Irish Payments Services Organisation Ltd (IPSO) have issued a simple converter that lets you input an account number and sort code to generate an IBAN and BIC for that account. 

All businesses will need to ensure that their payroll, direct debit and accounting systems are SEPA ready by 1st February 2014. The new system should ensure faster settlement of monies and a simplified process.

The Revenue Commissioners have stated that they will continue to use all existing electronic payments methods (including direct debit) post the SEPA implementation date of 1st February 2014. Revenue intends converting existing bank accounts being used to make tax payments to the new BIC and IBAN without the necessity to request new mandates from customers.

More detailed information can be found on the following websites:

• Central bank of Ireland
• European Payments Council
• Irish Payment Services Organisation Limited