Lyddon Consulting

NEW SCHEMES

New payment schemes in Euro are coming into existence - SEPA Credit Transfer, SEPA Direct Debit, and possibly Prieuro.  There are Rulebooks for these Schemes and initially they will run in parallel to the old schemes.

The new Schemes use a new data language - XML - and are derived from a new - but unadopted - global payments standard - ISO 20022.

The challenge is both to adhere to the Rulebooks and adopt XML/ISO 20022, while delivering the service on old systems and machines and processes, in order not to start a disconnected “SEPA” bank.

There are significant tensions around:

    • Lack of an EPC Scheme for urgent payments
    • Delay in roll-out of the Direct Debit Scheme
    • Neither EPC Scheme containing the data fields needed if banks in certain countries are obliged to report the payment details to their Central Bank
    • Neither EPC Scheme being an exact equivalent of any of the legacy schemes to be retired
    • End-to-end timing
    • Establishment of new mandates under the Direct Debit Scheme
    • Data conversion from usage of legacy layouts of Bank Account Numbers and Bank Routing Codes to the new standard, IBAN and BIC (International Bank Account Number and Bank Indicator Code)

     

New Schemes