From 1 January 2016, Lithuania is entering the Single Euro Payments Area. The Single Euro Payments Area (SEPA) is an area where private customers, government institutions and enterprises can send and receive local and international payments in euro under the same basic conditions, rights and obligations, regardless of their location.
Currently, the SEPA consists of the following 34 countries: all European Union (EU) member states, Norway, Iceland, Liechtenstein, Switzerland, Monaco and San Marino. The SEPA aims to advance European integration by creating a sole retail payments market. A single market for all euro payments will drive competition and innovation and thus bring better services for end users.
The European Payments Council has established a SEPA credit transfer scheme meeting the SEPA regulation requirements. From 1 January 2016, Medicinos Bankas will implement the credit transfer scheme within the SEPA. The SEPA credit transfers are similar to the credit transfers executed in Lithuania in the national currency. However, there are some differences in certain data fields and/or data length.
Existing local credit transfers in euro
SEPA credit transfers
Name of the payer/initial payer/beneficiary/end beneficiary:
140 symbols. The remittance information may be unstructured (free text) or structured.
The following are used for the identification of the payer/initial payer/beneficiary/end beneficiary:
Codes of legal/natural persons
Various identifiers may be used (VAT code, social insurance code, etc.); however, only one identifier may be indicated.
Codes of the sender/receiver in the sender’s/receiver’s information system
The payment code must be indicated as structured information in the remittance information field. A total of 35 symbols may be entered in this field.
If the beneficiary requests both a payment code and a textual part of the remittance information, the payer must be additionally informed as to the correct method of filling out the unstructured remittance information field without exceeding the limit of 140 symbols.
Attribute “Unique payer’s reference number” is not used
Unique payer’s reference number is transmitted unchanged to the beneficiary, if such specified by the payer.
Pursuant to the Law on Payments of the Republic of Lithuania, local credit transfers must reach the beneficiary’s account on the same business day, if the payment order is given before 12:00 noon. The SEPA will not change this rule. It is expected that competition will also ensure faster execution of international transfers. In accordance with the Law on Payments of the Republic of Lithuania, such payments must be executed within one business day (within two business days, if the payment is initiated in a paper format).
The following data is required to initiate a SEPA credit transfer:
- Payer’s name and surname (legal entity’s name);
- IBAN of the payer’s payment account;
- Credit transfer amount;
- IBAN of the beneficiary’s payment account;
- Beneficiary’s name and surname (legal entity’s name);
- Remittance information.
More information about the SEPA:
7 STEPS to help companies and public sector prepare for implementing credit transfers in accordance with the SEPA requirements;
Publication “Single Euro Payments Area. New Opportunities for Lithuania’s Payment Services Users”;
Feel free to submit your question about SEPA.