About SEPA
SEPA is the largest payments initiative ever undertaken within Europe. A successful implementation requires commitment of all involved parties, including users of payment services and supportive public authorities. It will also require the completion of the proposed Payment Services Directive, which is intended to provide a harmonised legal environment.
Before SEPA, each European country had its own payment systems and clearing systems, operating according to national standards and national legislation. Links across Eurozone borders were primitive and weak.
After SEPA, the main payment systems of each Eurozone will be similar, operating according to European standards and harmonised legislation. Clearing systems will be Pan-European.
Payment systems before SEPA | Payment systems after SEPA |
Irish credit transfers, direct debits, cheques can only be used within Ireland. Transfers to Europe require special instruments | Euro Credit transfers and direct debits will operate across borders. Cheque usage will decline under the Irish National Payments Implementation programme. |
Separate clearing systems in each countries. No links between clearing systems | Integrated Pan-European Automated Clearing House (PEACH) |
Account numbers and Branch sorting codes used to identify accounts in Ireland. IBAN and BIC used to identify accounts elsewhere in Europe | IBAN & BIC used to identify all accounts, whether in Ireland or abroad. |
Trading in multiple euro markets requires accounts in each country | Trading in multiple markets requires one account |
Different legislation in each country | Common legislation across Europe |
Domestic debit cards (laser) will not work outside Ireland unless card is co-branded | Wider acceptance of cards. No card can be issued which is purely Irish |