The goal of SEPA is to optimise payment services. In support of this goal, the European Parliament adopted, among other legislative acts, Regulation (EU) 260/ 2012. 

This Regulation, also known as “SEPA end-date regulation”, establishes a set of common standards, rules and practices for the execution of payment orders (credit transfers) and collections (direct debits) within the SEPA countries and determines the end-dates by which banks and businesses should adopt and implement specific technical requirements in order to operate within a single payments market.

The countries which are part of the jurisdictional scope of SEPA are the following:

European Union (EU) – Euro Area countries (18 countries)

Austria	Ireland	Malta
Belgium	Spain	The Netherlands
France	Italy	Πορτογαλία
Germany	Cyrpus	Slovakia
Greece	Latvia	Slovenia
Estonia	Luxembourg	Finland

 

European Union (EU) – Member States with currencies other than the euro (10 countries)

Bulgaria	United Kingdon	Sweden
Denmark	Hungary	Czech Republic
Croatia	Poland
Lithuania	Romania

 

Non-EU countries

Switzerland	Liechtenstein	Norway
Iceland	Monaco

For an updated list of SEPA Countries and Territories click here.

The benefits brought by SEPA to consumers, when these either make payments (“payers”) or receive payments (“payees”), are the following:

• Convenient use
• Automated procedure
• Uniformity of technical rules

The Regulation requires the use of common standards and business practices throughout Europe. Indicatively, the following standards apply to SEPA payment orders:

• IBAN: International Bank Account Number

For details on the ΙΒΑΝ, click here.

This number unambiguously identifies the credit institution and the account of a payee. Within SEPA, the use of IBAN becomes mandatory and is a prerequisite for the automated processing of payment orders.

• BIC: Business Identifier Code:

International standardised code which uniquely identifies a financial institution anywhere in the world. A different naming for BIC is SWIFT Code. 
The mandatory use of BIC for payment transactions within SEPA will end on 1.2.2016.

• “ISO 20022 XML” Standard:

Standard format for the development of electronic financial messages, as defined by ISO, including the payments orders and direct debits in XML format, in accordance with the rules under the scope of the Regulation (ΕU) 260/2012.

For access to the information concerning the articles of the Regulation through the official website of the Central Bank of Cyprus click here.

The changes resulting from the implementation of Regulation (EU) 260/2012 for individuals are the following:

• As of 1.2.2016, the mandatory use of the Bank Identification Code (BIC) is cancelled.
• Exclusive mandatory use-inclusion of the IBAN (International Bank Account Number)
• The Remittance Info field allows for a maximum length of 140 characters.

The above apply to direct debits (SEPA DIRECT DEBITS) and credit transfers (SEPA CREDIT TRANSFERS) within the European Union, i.e. to:

• Outgoing credit transfers from Branches, the Alternative Networks (Electronic Banking) and other channels of payments.
• Incoming credit transfers
• Payment orders to third parties

You may contact the Branch/ Unit with which you hold your accounts for any clarifications.

The changes resulting from the implementation of Regulation (EU) 260/ 2012 for businesses are the following:

• As of 1.2.2016, the mandatory use of the Bank Identification Code (BIC) is cancelled
• As of 1.2.2016, the files’ format exchange between banks and non micro-enterprises (as defined by the Commission Recommendation 2003/ 361/ EC) changes
• Exclusive mandatory use-inclusion of the IBAN (International Bank Account Number)
• The Remittance Info field allows for a maximum length of 140 characters

The above apply to direct debits (SEPA DIRECT DEBITS) and credit transfers (SEPA CREDIT TRANSFERS) within the European Union, i.e. to:

• Outgoing credit transfers from Branches, Alternative Networks and other bank channels
• Incoming credit transfers
• Payment orders to Beneficiary Organizations.
• Payroll payments
• Mass electronic payments
• Direct debits

1. What is SEPA?
SEPA (Single European Payments Area) is the payments area in the European Union (EU) where consumers, businesses and other economic actors can make and receive payments in euro under a set of common and uniform rules.


2. When was SEPA created?
SEPA was created with the introduction of the euro in the year 2002, with the aim of creating an integrated European infrastructure and a uniform regulatory framework for payment issues.


3. Which countries belong to SEPA?
European Union (EU) – Euro area countries (18 countries):
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, The Netherlands, Portugal, Slovakia, Slovenia, Spain.

European Union (EU) – Member States with currencies other than the euro (10 countries):
Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Lithuania, Poland, Romania, Sweden, United Kingdom.

Non-EU countries:
Iceland, Lichtenstein, Monaco, Norway, Switzerland.

Territories (where European legislation applies):
Martinique, Guadeloupe, French Guyana, Reunion island, Gibraltar, The Azores, Madeira, Canary islands, Aaland islands, San Marino, Mayotte, St Barts, St Martin, St Peter and Michael islands.

For an updated list of SEPA countries and Territories click here.


4. Who is affected by SEPA?
SEPA affects credit institutions (banks), clearing and settlement systems, businesses, consumers, State authorities and Public Administration organizations.


5. Why was SEPA created?
SEPA was created with the aim of developing an integrated European market for payments.


6. Which are the main products affected by SEPA and benefiting consumers?
The main SEPA products are the SEPA Credit Transfers and the SEPA Direct Debits, carried out in Euro.


7. What are the benefits that consumers gain through SEPA?
The benefits that consumers gain through SEPA, either as payers or as payees, are the following:

• Convenient use - Automated procedure - Uniformity of technical rules
• Convenience, security and fast payments
• Uniformity regarding the date on which funds become available (value date), with possibilities for further arrangements - No maximum amount limit for payments

8. What are the charging options available for SEPA transactions?
Payment orders can be marked as SHA (for “shared”). Meaning, the payer and the payee, each pays the charges applied by the bank that serves them.


9. Is it possible to execute payment transactions with charging option BEN?
No, this is not possible.


10. Is there uniform pricing in all participating countries due to SEPA?
Yes, based on the Bank’s Charges Catalogue.


11. Which banking products are affected by the recent Regulation 260/ 2012?
The Regulation affects payment orders (credit transfers) and collections (direct debits).


12. Are the changes introduced to banking products by Regulation 260/ 2012 mandatory?
Yes, the changes are mandatory for all (see Question 4) and are not adopted on a voluntary basis


13. What changes does Regulation 260/ 2012 introduce to banking products for private customers (individuals)?

• Use-inclusion of the IBAN (International Bank Account Number) has become mandatory, even for accounts held with the same Bank
• The Remittance Info field allows for a maximum length of 140 characters
• As of 1.2.2016, the mandatory use of the Bank Identification Code (BIC) is cancelled for SEPA payments

14. What changes does Regulation 260/ 2012 introduce to banking products for businesses?

• Use-inclusion of the IBAN (International Bank Account Number) has become mandatory, even for accounts held with the same Bank
• Remittance Info field allows for a maximum length of 140 characters
• As of 1.2.2016 use of the ISO 20022 XML format in credit transfer and direct debit files becomes mandatory
• As of 1.2.2016, the mandatory use of the Bank Identification Code (BIC) for SEPA payments is cancelled

15. Which Alpha Bank products are affected by Regulation 260/ 2012?
The Regulation affects the following Alpha Bank products, whether these are offered to an individual or to a business:

A) Payment orders (credit transfers) via Branch network, Alternative channels (ALPHA WEB BANKING/ ALPHA MOBILE BANKING) and other Bank channels:

• Individual internal payments within the Bank (outgoing)
•  Individual interbank payments (outgoing)
• Payroll Payment with submission of a relevant file by the businesses ONLY, through the following services:
  • ALPHA EXPRESS BANKING
  • ALPHA BANK FILE TRANSFER
•   Interbank or Internal mass payments within the Bank with submission of a relevant file by the businesses, through the following services:
  • ALPHA EXPRESS BANKING
  • ALPHA BANK FILE TRANSFER

 
B) Collections (direct debits)

• Collections (Direct Debits) with submission of a payments file by JCC Payment Systems   Ltd on behalf of the businesses, with the Bank acting as:
  • Debtor Bank
  • Creditor Bank

16. Do transactions in cash have to comply with Regulation 260/ 2012?
No, they do not have to comply with the Regulation.


17. Do transactions with payment cards have to comply with Regulation 260/ 2012?
No, they do not have to comply with the Regulation.


18. If a business is an Alpha Express Banking subscriber and makes use of the Alpha Bank Mass Payments Service, should it proceed to convert files to ISO 20022 XML format?
If a business is an Alpha Express Banking subscriber and uses the Alpha Bank Mass Payment Service (via Alpha Bank File Transfer FTP), it can make use of the current agreed file format when transmitting via Alpha Express Banking.


19. If a business which is not an Alpha Express Banking subscriber wishes to exchange ISO 20022 XML files format can the Bank offer this service?
Yes, the business may use files in ISO 20022 XML format via the Alpha Bank File Transfer in accordance with the guidelines provided by the bank.


20. Via which channels may a business send to the Bank interbank mass payment files?
A business may send interbank/ intrabank mass payment files via:

• Alpha Web Banking
• Alpha Bank File Transfer

21. Can we contact Alpha Bank for more details on the XML file specifications or sample files?
Yes for more information on the file specifications,  sample XML files or testing  please contact us via email to IT@alphabank.com.cy