The Single Euro Payments Area – you’re steadily seeing talk of it everywhere. The new financial structure for banking in the Eurozone will mean changes for every business based there.
Here we present the practical information you need to get a grip on things, and take the right steps to make sure European businesses are ready for the new banking system.
Prepare for the move to a new payment file
If you make frequent payments to other European countries in Euros, moving over to the new system as quickly as possible is going to save you time and money.
In general, paying according to SEPA standards is for the most part work for your bank and software supplier. As part of this, your bank will be initiating changes to the format of the file you use to send them bulk transactions. You can find details of the move from CLIEOP03 to PAIN on their website, in addition to the date from which you can begin using the new system.
It’s then up to your software supplier to ensure that your solution can work in line with the new payment files. As such, you really only need to ensure that you’ve got the relevant update for your solution, that SEPA has been activated within it, and that the right checkboxes have been ticked in your payment file creation settings. Payments to countries outside of the SEPA region will continue to use the BTL91 format.
Although the majority of the work here does not involve you, it’s important that you make sure there is a match between your software system and the functionality offered by your bank. It could be that they do not support the same type of PAIN payment file, leading to problems when you begin trying to use the new setup. Ask your bank which PAIN version they support and double check with your software vendor to see if any additional action needs to be taken.
Next time, advice ahead of the new European direct debit collection system.
More Business articles from Business 2 Community: