SEPA - Countdown John Sheils AIB Corporate Cash Management 01 - PowerPoint PPT Presentation

SEPA - Countdown John Sheils AIB Corporate Cash Management 01 6417689 john.f.sheils@aib.ie

SEPA – Overview • Closing of the euro national payment schemes throughout the SEPA zone on 1 st February 2014 • Migration to BIC and IBAN from NSC and Account numbers for all Euro electronic payments • Expected migration to XML from legacy file formats such as CSV & flat file in 2016

SEPA – Key Migration Steps • Deciding migration time frame • Storage of data • Conversion of legacy data • New file formats (including decision on XML migration) • Understanding implications of key differences between Irish direct debit scheme & SEPA direct debit scheme

Comparing existing DDs vs. SDDs Existing Scheme New SEPA scheme Can be used for recurring or ‘once - off’ Must be for recurring amounts payments First 6 characters of Mandate Reference must A unique reference number (UMR) must be be same, last 12 characters can be variable used for each mandate in a file, otherwise collection rejected Debtor has 1 day to claim a refund Debtor has 8 weeks to claim a no questions asked refund Mandate must be held for minimum of 7 years Mandate must be held for a minimum of 13 after final DD presented months after final DD presented, due to possibility of an unauthorised debit claim for up to 13 months Mandate may be managed by either Creditor or Mandate must be held by the Creditor bank (depending on whether in Originator or Originator+ scheme) 1-2 day lead in time 3 & 6 day lead in time

SEPA DD Collection Dates - Example • Your company is due to collect monies from customers via the SEPA Direct Debit Scheme on 25.01.2013. What dates should you be aware of, both in submitting the file, and after the file has been submitted to the bank? • First Presentation • For new Direct Debit instructions (i.e. First Presentation) you must submit your file to the bank 6 days prior to the due date. 25 • In this case 17.01.2013 ( This includes ‘once - off’ presentations) • Recurring Items • For subsequent recurring items you must submit your file to your bank a minimum of 3 days prior to the due date. • In this case 22.01.2013.

Countdown Countdown to the closure of the SEPA zone national euro payment schemes 431 days Or 1 year, 2 months & 5 days Until 1st February 2014

Contact Details Thanks for listening If you need further information contact me at John.f.sheils@aib.ie 01 6417689