Single Euro Payments Area (SEPA) In Oracle EBS
The
euro has meant that you can pay by cash anywhere in the euro area just as
easily as at home. But at present it's not so easy if you want to pay for goods
or services electronically in another euro area country, for example with your
bank debit card, which is how many people want to make payments today. And when
you want to transfer money from your home bank account to an account in another
euro area country, the payment can take much longer, and sometimes the receiver
does not get the full amount. The Single Euro Payments Area (or 'SEPA' for
short) will change all this. It will make all electronic payments in the euro
area as easy as cash payments are now. It will mean that you can make fast and
secure transfers between bank accounts anywhere in the euro area. .
First of
all, let's be clear that SEPA won't be like the introduction of the euro, which
had a big impact on all our daily lives. In fact, the changeover to SEPA should
be as seamless and as smooth as possible. For most people, it will simply mean
that your ability to make payments in the euro area will significantly improve
once your bank has made the changeover to SEPA.
The
introduction of SEPA will give you the following advantages:
Use your
debit card anywhere in the euro area: when you're on
holiday or visiting another euro area country, you will be able to pay with
your debit card as you would at home. This is particularly useful if you do not
have a credit card, or for making low-value purchases for which a credit card
is often not accepted. Nor will you need to carry around lots of cash, since
you will be able to use your debit card anywhere at anytime, and to make withdrawals
from cash machines, just as if you were at home.
Better
cross-border bank transfers: you can already transfer money within the
euro area, but often this takes a long time and costs more. SEPA will guarantee
that your euro payments are made promptly and in full. Your payment should be
received within a guaranteed time, and banks will not be allowed to make any
deductions of the amount transferred. You will also receive simple and clear
information on any charges or fees applicable.
Direct
debits from anywhere in the euro area: if, say, you rent
a holiday home on a long-term basis or have regular bills to pay in another
euro area country, you will be able to pay these bills from your home country
by direct debit. And it will open up many other possibilities for regular
payments and subscriptions, such as to a foreign newspaper or magazine.
Only one
bank account needed for the whole euro area: SEPA will make
things much easier if you are working or studying abroad in another euro area
country, especially on a temporary basis. At present you have to go through a
range of formalities to open a new bank account in the new country. However,
with SEPA you can simply carry on using your existing euro account in your home
country. For example, you can have your salary paid into your home account and
you can also use your home account to pay any bills you have in the new
country. This means very few practical changes, especially if you are used to
internet banking.
Lower
prices for basic payment services in high-cost countries: in
some euro area countries, the annual cost of running a bank account can be as
much as EUR 250, compared to only EUR 30 in others. More competition
between banks will help to drive down these inflated costs. And in countries
where prices are already low, they should remain low.
Transparent
pricing and no hidden charges: banks will have to tell you exactly what
they are charging you for, and hidden charges should disappear, such as hanging
on to your money before adding it to your account (known as 'float income'), or
crediting money to your account but allowing you to use it only after a certain
date (known as 'value dating'), which can mean inconvenience and loss of
account interest for you.
SEPA@
EBS
Oracle
EBS functionality for SEPA messages customer credit transfer initiation
(pain.001.001.02) is based on the ISO20022 format. ISO20022 format have these
benefits;
Batch
booking
Grouping
: This reduce the number of transmitted files
Remittance
message
End to
end id . This will ease reconciliation and referencing
Implementing
SEPA in EBS:
The SEPA
Credit Transfer Initiation Message is available for R11.5.10 via Patch
6741280.Customer using 11.5.10 can get the functionality enable by applying
patch.
Oracle White Paper:
Note:738361.1
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