One of the most important changes in the payment systems landscape is now just around the corner. SEPA (Single Euro Payments Area) and more particularly the SEPA Cards Framework are much more widely anticipated than they are understood. There has been much written on the potential positive and negative impacts of these initiatives, but the fact remains that the advent of change is now becoming a reality and banks are beginning to quantify the impacts of these changes.
Visa and MasterCard were in many ways well equipped and prepared to deal with the requirements laid out by the SCF, as their very purpose is to supply an interoperable network for international banks. We have also seen the schemes react in a very proactive way by providing SEPA compliant pricing to their members and we are now seeing the implementation of SEPA interchange rates. However, there are a number of requirements laid down by the SCF which have created challenges for domestic debit card schemes and the banks that use those schemes. By the end of 2010, the domestic debit card schemes within the euro-area 13 countries will have to be interoperable.
In order to help Banks both inside and outside the immediate euro-area 13 understand the financial implications of these changes, Insight has developed several models:
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SEPA Migration Model |
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SEPA Payment Scheme Fee model |
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SEPA Interchange model |
For more information on these models, please contact: sepa@insight-consultancy.com
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All euro Payments |
Domestic Payments |
PSD Directive |
| euro-area 13 |
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| EU New Member States |
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EU Nations
outside euro area |
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| EEA |
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| Switzerland * |
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| Keys: |
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Requirement to implement |
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Voluntary alignment |
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For new Member States domestic payments when they join the euro |
Source: EPC066/06 version 1.4 “Making SEPA a Reality” 16 April 2007 www.europeanpaymentscouncil.eu
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