- The new SEPA Credit Transfer Scheme will enable customers to send and receive automated payments in euro simply and efficiently, marking a significant step towards the creation of a single market for Europe*

- The UK banking industry has ensured its customers benefit from the new Scheme

From today (28 January) the new SEPA Credit Transfer (SCT) Scheme will enable euro credit transfers to be made within a maximum of three days, and without any deductions from the principal amount. The customers who will benefit most are those larger businesses for whom it will make cross-border trade easier, and UK consumers who make regular euro payments because they may, for example, maintain properties abroad.

Although the UK remains a non-euro country and the number of cross-border euro payments to and from the UK is relatively small, many UK–based businesses and a small number of consumers might benefit from this new scheme. A number of UK-based banks have already committed to joining the SCT Scheme from its launch: APACS estimates that they account for about 85% of the UK payments market, and this is expected to increase over time. Customers interested in the SCT Scheme should speak to their bank or building society. This initiative will not, however, impact those who only make or receive payments in sterling or other currencies like US dollars or Japanese yen.                                                                                                              

SEPA also aims to harmonise technical standards used for plastic cards throughout Europe, reducing the complexity facing retailers who have card-accepting outlets in more than one country. SEPA will see EMV chip cards - already used in the UK – rolled out across Europe by the end of 2010, helping in the fight against card crime.  

The next SEPA development will be the SEPA Direct Debit Scheme, which will enable direct debits to be made in euros on a SEPA-wide basis according to a common set of rules and timescales. This launch is dependent upon the national implementation of the Payment Services Directive into 27EU Member States, which will be achieved by November 2009.  The UK has already started the implementation process with HM Treasury issuing a consultation document in December 2007. 

For more information on SEPA services, please contact your bank or visit www.europeanpaymentscouncil.eu.

ENDS

For further information contact the APACS Press Office:

T:  Jemma Smith 020 7711 6340 / Michelle Meyer 020 7711 6316

E: press@apacs.org.uk

Notes to editors:

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as direct debits, salary payments and online/phone transactions. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

* SEPA is an initiative that will harmonise electronic payments in euro across the EU member states, the European Economic Area countries (Iceland, Liechtenstein and Norway) and Switzerland. It creates a new payment area that will allow businesses and individuals to make and receive payments in euro, simply, cheaply and efficiently, regardless of their location.