SEPA that is Single Euro Payments Area is one of the most important and largest money transaction schemes that is been implemented in the countries of the European Union and the other four countries outside the Union. SEPA has been in vogue from January 2008 and it started with SEPA Credit transfer. Gradually in the years that followed, SEPA direct Debit and SEPA credit cards were launched. The two chief heads organizations that monitor the infrastructural levels of SEPA are the European Central Bank (ECB) and the European Payments Council (EPC). The second biggest milestone in SEPA schemes is the SEPA Migration rule, the report of which has been released on 21st March, 2013 very recently.
Features of SEPA Migration
To centralise the national markets of the member states of the European Union and decrease disparity in the nationilsed banks, the SEPA migration End-Date Regulation have been launched. It is a series of guidelines for users and other beneficiaries of this scheme so that the entire transaction pattern should be standardised. According to this report, for European area migration to SEPA Direct Debits and SEPA Credit Transfer 1st February, 2014 has been set as the last date of submission. All kind of users Under SEPA are now left with 11 months to file their payment orders whether be individual users or for smale and large scale businesses. The payment service providers can refuse payments after the deadline is missed.
Late SEPA migration services not only put the users at stake but also the service providers under SEPA. The service providers need to arrange the payment orders in an organised pattern as early as possible so that they can avoid any chance of disruption. Hence rather than the beneficiaries the stake holders under SEPA are in more pressure as this arrangement is suggested to be finished by the later half of this year. The risk lies with the stakeholders more than of the beneficiaries due to which the migration rule may come under high risk. Hence the report suggested that there is end-service providers should include more technologies and customer relations chanelling so that this organization of payment transaction could be solved as early as possible.
Some Pros and Cons Regarding the Migration Rule
It has been found through a study that most of the corporations and stake holders at the end note are already done with their planning of organization. The practicality and implementing strategies of SEPA across 32 countries where it has been implemented has been well realised by the companies who are working for better service and infrastructural development. But at the same time there are a lot of companies whose awareness and understanding of SEPA migration services is quite shallow specially small and local enterprises. This affects the entire system because every stake holder when it comes to Migration rule should work together so the entire system works smoothly.
Over 8000 banks and corporations are involved in SEPA schemes and it is the smooth execution of work of all the stake holders that brings the SEPA scheme to a successful state.