The European Payments Council (EPC) is launching a public consultation on its proposed [Instant] Euro One-Leg Out Credit Transfer ([Inst] Euro OCT) Arrangement Rulebook (EPC145-21) and the proposed Maximum Amount for Instant Euro OCT Instructions under the [Inst] Euro OCT Arrangement Rulebook (EPC208-21), which can be downloaded below. The consultation will run for a 90-calendar day period from 18 January up to and including 17 April 2022.
Under the proposed Arrangement, a Euro One-Leg Out Credit Transfer (Euro OCT) is defined as an electronic payment instrument for making international euro credit transfer payments between a payment account held at a Payment Service Provider (PSP) established in and/or licensed to operate in a country or territory included in the SEPA geographical scope, and an account held at a Financial Institution (FI) established in and/or only licensed to operate in a non-SEPA country or territory.
The Arrangement supports both incoming and outgoing Euro OCTs from the perspective of a Payee and a Payer respectively holding a payment account held at a SEPA-based Payee’s PSP and at a SEPA-based Payer’s PSP, and any related exception handling (e.g., r-transactions) and inquiries. A successful launch and operation of the Arrangement would rely on a sufficient number of adhering SEPA-based PSPs in the different roles of the Arrangement.
The Euro OCT Arrangement further supports the treatment of the following sub-types:
- Standard Euro OCT where an instant processing is not requested by the Payer. After the receipt of the Standard Euro OCT, the actor concerned processes the Standard Euro OCT and/or makes the funds available as soon as possible (e.g., at the next possible clearing cycle) or according to the arrangements agreed with the next actor in the international payment chain.
- Instant Euro OLO Credit Transfer (Inst Euro OCT) whereby the Payer requests an instant processing of this credit transfer. The Arrangement itself sets the maximum execution timelines and deadlines for such instant payments and related exception handling exclusively for the SEPA Leg, as well as the maximum transferable amount per Inst Euro OCT.
The Arrangement provides a set of Inter-PSP rules, practices and standards to be complied with by SEPA-based PSPs who adhere to the Arrangement. It allows PSPs to offer account-to-account based payment solutions supporting both incoming and outgoing Standard and/or Instant Euro OCT transactions. It gives them the possibility to offer their Payees and Payers a faster execution of such transactions, more up-front transparency on costs and on the parties involved, and a better payment status traceability (e.g., via Unique End-to-End Transaction Reference (UETR) and inquiry use cases).
The Arrangement specifications apply only to the SEPA Leg of an [Inst] Euro OCT transaction. It does not define concrete direct obligations for the payment chain actors operating in the non-SEPA Leg of such transactions.
The Arrangement would be optional for SEPA-based PSPs. SEPA-based PSPs interested in adhering to it, would have to support it in the role of at least a SEPA-based Payee’s PSP. This means that they must accept to receive [Inst] Euro OCTs introduced in the SEPA leg by a so-called SEPA Entry PSP being also an Arrangement Participant. PSPs can also support this Arrangement in the role of a SEPA-Based Payer’s PSP, a SEPA Exit PSP and/or a SEPA Entry PSP.
All interested stakeholders are invited to participate in the public consultation by sending their feedback on the proposed [Inst] Euro OCT Arrangement Rulebook and the related proposed Maximum Amount for Instant Euro OCT Instructions, via e-mail to [email protected] by 17 April 2022 (midnight Brussels time) at the latest. The EPC will not consider any feedback received after this deadline. To submit your feedback please use the response template (EPC013-22) that can be downloaded below.
In the second quarter of 2022, the EPC will then review the feedback received from this public consultation and consider concrete next steps about the proposed [Inst] Euro OCT Arrangement. An important element for the EPC to pursue with the launch of this Arrangement or not, is the scale of interest among SEPA payment scheme participants and other payment stakeholders in SEPA for this Arrangement.