Thanks to technology - we can now lead an easy going and relaxed life! The way technology has changed things over the last few decades is absolutely remarkable. It has changed the way we manage our homes, it has changed the traditional work methods at office, the way we communicate and connect to each other and the also the definition of non-stop entertainment. Predictably it has also contributed much in the ways we make payments and handle banking.
SEPA Direct Debit - The Concept
In this context, when discussing how new avenues have opened up with electronic forms of payment, we are going to talk about SEPA / Single Euro Payments Area, one of the most popular e-payment forms, which was put forth by the European Union as an initiative to convert the international euro market into a singular domestic unit with SEPA Direct Debit
How SEPA works?
Believe it or not as SEPA has taken over the market, traditional payment forms via cash and cheques has almost gone obsolete in countries as Scandinavia and Netherlands. UK Payments Council has confirmed that SEPA has attained quick consumer uptake as more and more people find it a safer and accurate method of paperless transaction. Another vital point that makes SEPA well accepted is the fact that it can handle large volumes of transaction and with zero faults! As a result SEPA has been introduced in 32 countries across the globe, which means that now a consumer can make payments to anyone anyplace using a debit card - the user bank will deduct that particular amount and credit it to the receiver's bank! End of story!
Advantages of SEPA Direct Debit Solution
The three basic advantages that SEPA guarantees are -
• Simplicity of process
• And Cost effectiveness involved in money transaction
However SEPA is applicable to countries that are within the Eurozone.
Why European Banks are promoting SEPA?
SEPA is being fiercely promoted by European banks as it helps curtail manual labor and flaws, enhances work performance and decreases overall expense. For banks SEPA is an effective solution to handling large volumes of data processing each day - and why not, after all e payment makes the fund transfer process easier, smoother, fast and accurate.
Goals of Sepa are directed towards uniting the fragmented European market through common financial instruments and infrastructure. This will help diminish European economy of transferring capital around the market to at least two percent of the total gross domestic product, which is a huge amount saved to almost 2.5 trillion.
A Few Important Things to Note about SEPA:
However there are a few things that you need to know when opting for a SEPA clearance:
• To undergo a SEPA clearance you need to produce an IBAN bank account id card.
• All domestic money transfer will be routed by IBAN
• All existing national-designation plans will be eliminated by 2014, February. This means that consumers will get a standardized platform to access fresh payment devices.
SEPA it is hoped will intensify competition between banks and corporate across European countries. On the other hand, clients will also enjoy cost effective and efficient service when it comes to moving funds from one place to another within Europe.