Approval of the next version of the Credit Transfer and Direct Debit Rulebooks and associated implementation guidelines for publication in November 2012; these updated versions will take effect on 1 February 2014
The Plenary approved the Credit Transfer ( ) Rulebook version 7.0, Direct Debit ( ) Core Rulebook version 7.0 and Business to Business (B2B) Rulebook version 5.0 and associated implementation guidelines ( ) for publication in November 2012.
For detailed information on new elements introduced into the rulebooks, to be published in November 2012, refer to the article ' Scheme Rulebooks: Next Edition Available in November 2012! The European Payments Council ( ) publishes new versions of the Credit Transfer and Direct Debit Rulebooks' (see 'related articles in this issue' below).
To ensure planning security for all market participants, publication of updated versions of the and Rulebooks, together with the associated , follows an established change and release management cycle. The publishes updated versions of the rulebooks once annually, in November of each year. These updated versions normally take effect in the third week of November of the following year. In accordance with industry best practice, payment service providers and their suppliers therefore have sufficient lead time to address rulebook updates prior to such changes taking effect. Based on the established release management cycle, the updated versions of the rulebooks, to be published in November 2012, would normally take effect on 16 November 2013.
Single Euro Payments Area ( ) stakeholders however, are currently working towards achieving compliance with the European Union ( ) 'Regulation ( ) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009', which defines 1 February 2014 as the deadline in the euro area for compliance with the core provisions of this Regulation. As a result, and as communicated in June 2012 (see 'related links' below), the decided to postpone the effective date for the Rulebook version 7.0, the Core Rulebook version 7.0 and the B2B Rulebook version 5.0 and associated , from 16 November 2013 to 1 February 2014. This allows market participants sufficient time to adapt their systems and operations to comply with both the Regulation and the updated versions of the rulebooks.
Modifications to the and Rulebooks to take effect on 17 November 2012 to include the updated version of the Scheme Management Internal Rules and ensure alignment with Regulation ( ) 260/2012 regarding multilateral interchange fees for direct debits
In November 2011, the published:
- The Rulebook version 6.0.
- The Core Rulebook version 6.0.
- The B2B Rulebook version 4.0.
These rulebook versions will be updated to include version 4.0 of the Scheme Management Internal Rules (the Internal Rules), which were approved by the Plenary in September 2012. Amendments to the Internal Rules are of a purely administrative nature and have no operational impact whatsoever.
The Core Rulebook version 6.0 and B2B Rulebook version 4.0 will be further updated to ensure compliance with Articles 6 (3) and 8 concerning interchange fees for direct debit transactions of the Regulation ( ) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009. These provisions concerning cross border transactions will come into force from 1 November 2012.
The rulebook versions that take effect on 17 November 2012 are therefore the Rulebook version 6.1, the Core Rulebook version 6.1 and the B2B Rulebook version 4.1. These rulebook versions will be published on the Website in early November 2012. Follow the on LinkedIn and / or Twitter to receive an alert when these rulebook versions are available on the Website.
Publication of the updated version of 'Guidelines on Algorithm Usage and Key Management' on the Website
The approved the updated version of the 'Guidelines on Algorithm Usage and Key Management', for publication on the Website (see 'related links' below). This document was first produced by the former European Committee for Banking Standards (ECBS) as Technical Report 406, with its latest version 4 published in September 2005. Following the cessation of activities by ECBS, ownership of this document has now passed to the . The has published regular updates of the document in view of the new developments on this topic during the past years.
The purpose of this Technical Report is to provide guidance to the European banking industry, in the field of cryptographic algorithms and related key management issues. Its target audience is: security officers, risk managers, system engineers and designers. Although its reading does not assume expertise in cryptology, some sections require a basic mathematical background.
This latest publication is a state of the art survey which supersedes the Technical Report 406, previously published by ECBS. The document was recently updated to incorporate the new findings of the 's 2010 and 2011 crypto reports and to improve readability.
Suspension of any further development related to the Mobile Contactless Card Payments Interoperability Implementation Guidelines awaiting further clarity on the governance of the Council and on the ensuing mandate of the
After an analysis of specifications and guidelines from industry bodies such as EMVCo, GlobalPlatform and Mobey Forum to ensure that existing work in this area was leveraged, a preliminary version of the 's 'Mobile Contactless Card Payments Interoperability Implementation Guidelines' ( ) was made available for public consultation in April 2011. Following the evaluation of the feedback received, the published the final version of this document in November 2011. These guidelines were built on 's previous work to focus on the interoperability of processes in the contactless mobile payment (m-payment) application lifecycle management, when the m-payment application is stored on one of three secure element (SE) types: UICC, embedded SE or secure micro secure digital (SD) card.
As communicated with the July 2012 edition of the Newsletter, in June 2012 the approved publication of the for a further three month public consultation. In September 2012, the however, resolved to refrain from publishing a new version for external consultation pending the outcome of the ongoing review of the governance structure.
On 30 March 2012, the 'Regulation ( ) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009' was published in the Official Journal of the . Recital 5 of this Regulation states that the European Commission should "review the governance arrangements of the whole project before the end of 2012 and where necessary make a proposal. This review should examine, inter alia, the composition of the European Payments Council ( ), the interaction between the and an overarching governance structure, such as the Council, and the role of this overarching structure."
Pending the outcome of this review process, the decided to suspend any further development related to the awaiting further clarity on the governance of the Council1 and on the ensuing mandate of the . The already published (EPC178-10 v2.0) will therefore remain unchanged and no public consultation on a draft new version of the will be launched for the time being. Any possible further maintenance will be considered within the future overarching governance structure.
Disbandment of the e-Commerce Payments Working Group and disbandment of the e-Channel Task Force
In September 2012, the decided to disband the e-Commerce Payments Working Group and the e-Channel Task Force.
As communicated with the July 2012 edition of the Newsletter, the and its members decided to abandon the further development of the draft e-Payment Framework (and any standardisation initiatives that would have the same object or effect). In September 2011 the European Commission launched a competition investigation into the 's work on the draft e-Payment Framework. Subsequently, the suspended all activities related to the draft e-Payment Framework including the plan to launch a public consultation on it.
The draft framework had been developed in response to repeated requests by several authorities and European e-merchants for the European banking industry to produce a model which allows -wide online payments based on credit transfers. This draft framework was designed to support -wide interoperability between existing and new e-payment schemes that rely on credit transfers.
The remains committed to contributing to the creation of an efficient and secure wide online payments landscape responding to market needs. This is in line with the objectives set out in the European Commission's Digital Agenda for Europe. Defining the legal and security requirements applicable to online payments in based on a close dialogue between all stakeholders is however a prerequisite to developing a secure -wide online payment environment. For further information, refer to the statement 'The Abandons Work on Draft e-Payment Framework' (see 'related links' below).
Javier Santamaría is the Chair of the .
Related articles in this issue:
SEPA is Just a Piece in the Puzzle: Additional European Union Regulatory Initiatives Now in the Pipeline Will Have a Profound Impact on the Payments Market. European payments regulation is a moving target
Cross-border Interchange Fees: Why the General Court Got it Wrong in the MasterCard v. Commission Case. MasterCard is not an association of undertakings, and default settlement terms (including a default interchange fee - positive, negative or zero) is indispensable to the operation of the scheme
Related articles in previous issues:
'Towards an Integrated European Market for Card, Internet and Mobile Payments': Striking the Balance - Interoperability and the Access Dilemma. European Commission publishes feedback report on its Green Paper ( Newsletter, Issue 15, July 2012)
What Happens Next? European Authorities to Communicate Their Vision for SEPA 2.0 by End 2012EPC looks forward to learning more about the authorities´ views on the continued merit of creating harmonised payment schemes and frameworks in the cooperative space of payments ( Newsletter, Issue 15, July 2012)
1 The Council, which brings together representatives from both the demand and supply sides of the payments market including the , was established by the European Commission and the European Central Bank in June 2010. Its aim is to promote the realisation of an integrated euro retail payments market by ensuring proper stakeholder involvement at a high level and by fostering consensus on the next steps towards the full realisation of (for more information, see: http://www.ecb.europa.eu/paym/sepa/stakeholders/governance/html/index.en.html#council).
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