SEPA products

Make your transactions easier, quicker and more cost-efficient with Single Euro Payments Area (SEPA) products, which allow you to make international payments as easily as domestic payments. Arrange Europe-wide direct debits simply and effectively. Plus, take advantage of our global presence and financing-focused strategy.

SEPA Credit Transfers

Improve and standardise the payment method for non-urgent transactions in euros by taking advantage of the SEPA Credit Transfer, which was launched in January 2008, and has since been progressively replacing current domestic transfers.

SEPA Credit Transfer details

You can complete payments within one day at HSBC; it's better than the standard SEPA Credit Transfer maximum execution time of three days.

Advantages:

  • No limit on the amount of the payment
  • Improved reporting information to facilitate easier reconciling
  • Maximum three-day execution period starting from acceptance date, which is offered by HSBC in one day

What you need to know about payments:

  • The use of a Basic Bank Account Number (BBAN) (ie domestic account formats) is permitted until 1 August 2016, with banks providing conversion services to International Bank Account Number (IBAN) until then
  • The remittance allows for up to 140 characters, and banks will provide full remittance information on account statements
  • HSBC recommends that you use XML format ISO 20022 to initiate payments

Additional information:

  • Transmission of the rejection message (before interbank regulation) is, at the latest, on the day following the day of handling the transfer
  • Transmission of different return messages (such as account closed after interbank payment) in three days following the payment
  • Payments are made in full, with no deduction from the principal amount allowed at any stage in the process. The originator and beneficiary are charged separately and individually by the originator bank and beneficiary bank, respectively
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SEPA Direct Debit

Enjoy the convenience of making direct debits from euro accounts across SEPA with SEPA Direct Debit. Launched on 1 November 2009, SEPA Direct Debit is the pan-European direct debit system that can be used for both domestic and cross-border collections through the 32 SEPA countries.

SEPA Direct Debit also allows creditors to improve cash management and liquidity by simplifying direct debit payment processes across Europe. As for debtors, it offers an easy way to pay bills in SEPA countries.

SEPA Direct Debit details

Make your transition to SEPA Direct Debit easier through HSBC. You can deliver payments through a wide range of proven electronic channels, and manage and centralise payments from several locations across Europe.

Today, HSBC offers a full SEPA Direct Debit capability for core and business-to-business schemes in Germany. The ability for creditors to collect SEPA Direct Debits is being rolled out in the remaining European markets on a phased basis as demand for SEPA increases.

Integrate treasury, payable and receivable applications, and share information with your banking and financial partners with the new SEPA messaging standard formats which we have adopted. Plus, using our Bank Identifier Code and International Bank Account Number (IBAN) solution, you can allow your clients to automate their national bank account ID from 32 countries in the SEPA zone.

SEPA Direct Debit in detail

  • For transactions in euros and applies to domestic and cross-border direct debits
  • The scheme lets a creditor collect funds from a debtor's bank account, provided that a mandate has been signed by the debtor (payer) to authorise the creditor (payee) to collect a payment and to allow the debtor bank to pay those collections (debtors are entitled to instruct their banks not to accept any direct debit collections on their accounts). The mandate can be issued in paper form or electronically, and it expires 36 months after the last initiated direct debit
  • The creditor must send a pre-notification, such as an invoice, including the date and the amount to be collected, to the debtor 14 calendar days before collecting the payment at the latest, unless a different timeline has been agreed between the debtor and the creditor
  • Each creditor will be provided with a creditor identifier reference which can be used across the SEPA zone

What you need to know about payments

  • The use of a Basic Bank Account Number (BBAN) (ie domestic account formats) is permitted until 1 August 2016, with banks providing conversion services to International Bank Account Number (IBAN) until then
  • The remittance allows for up to 140 characters, and banks will provide full remittance information on account statements
  • Takes advantage of ISO 20022 message standards, which will reduce running costs for payment systems
  • HSBC offers a BIC and IBAN validation/conversion tool, enabling customers to make the most of SEPA Direct Debit payments

Advantages

  • The scheme allows all parties of the transaction to anticipate the due date when their account will be debited or credited
  • Enables standardised collection of cross-border invoices for collections anywhere in the 32 countries in the SEPA zone
  • Ensures payment completion within a pre-determined time cycle and the ability to determine the exact collection date
  • Enables straightforward reconciliation of payments and the ability to automate exception handling
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SEPA Cards Framework

Carry out simple, secure and efficient card payments and cash withdrawals within the SEPA zone with the SEPA Cards Framework (SCF), which was developed by the European Payments Council in 2004-05.

The SCF covers card payments and ATM cash withdrawals made or cleared in euro within the SEPA zone using SCF-compliant cards issued by SEPA banks or payment institutions.

SEPA Cards Framework details

Cards issued under the SCF

The SCF requires that:

  • Banks and payment institutions who distribute and issue payment cards must offer SCF-compliant cards
  • After end 2010, all general purpose payment cards in circulation, and distributed and issued by SEPA banks and payment institutions are SCF-compliant

Merchant acceptance under the SCF

  • Merchants must be allowed to choose which SCF-compliant card acceptance marks they wish to accept, and which acquirers they wish to contract
  • A SEPA merchant will – for the same set of services and in the same merchant location – pay the same charges to its acquirer for national and SEPA transactions for the same type of a scheme's payment product
  • A consistent merchant experience will be delivered when there are no technical or practical barriers preventing SEPA merchants from accepting all SCF-compliant cards