SEPA Credit Transfer

The term payment system as defined in the Payment Services Directive (PSD), means a funds transfer system with formal and standardised arrangements and common rules for the processing, clearing and / or settlement of payment transactions. In other words, a funds transfer system enables the exchange of funds (money) and messages between two payment service providers (PSPs) executing a payment transaction. These funds transfer systems can be PSPs as well as separate business - public or private - entities (which may or may not be owned by banks).

In the Single Euro Payments Area (SEPA) context, a payment system in the meaning of a 'funds transfer system' is referred to as a 'Clearing and Settlement Mechanism' (CSM). Services offered by competing CSMs, based on the SEPA Payment Schemes, are governed by market forces and are outside the EPC's remit as there is a clear separation between the European Payments Council (EPC) as the SEPA Scheme Manager and CSMs. The EPC approved the principles for the CSMs in its PEACH/CSM Framework.

The following CSMs have disclosed their intention, by letter to the EPC, to be SEPA Credit Transfer Scheme (SCT)-compliant.