Approval of the updated version of the document ‘Improving the Efficiency of the Handling of Cash - Cash Cycle Models’
In 2010, the European Payments Council () and the European Security Transport Association (ESTA) established a joint task force to identify best practice principles and, where possible, develop recommendations on how to further improve deploying and re-circulating cash in the Single Euro Payments Area. The considerations of this task force are reflected in the document ‘Improving the Efficiency of the Handling of Cash - Cash Cycle Models’. The document aims to create awareness among participants in the commercial cash cycles established at national level on how to improve existing processes and reduce the overall cost of cash. For further information, refer also to the related Blog published in April 2013 with the launch of a three-month public consultation on this document (see ‘related links’ below). Following this public consultation, the has worked to incorporate input from 13 parties representing various stakeholders active in the commercial cash cycles. The Plenary approved the updated version 2.0 of the document ‘Improving the Efficiency of the Handling of Cash - Cash Cycle Models’ (see ‘related links’ below), which was published on the Website in December 2013.
Approval of the Cards Standardisation Volume version 7.0 ready for market implementation
The European Union (EU) authorities driving forward the programme identified the need to create harmonised cards standardisation requirements throughout all countries across early in the process of integrating the market for electronic euro payments. In response to these expectations, retailers, vendors, processors, card schemes and the jointly created the Cards Stakeholders Group (CSG) in 2009. The CSG develops and maintains the Cards Standardisation Volume (the SCS Volume). This document defines a standard set of requirements to ensure an interoperable and scalable card and terminal infrastructure across , based on open international card standards. Following the public consultation on its provisionary version 6.5 in June and July 2013, the CSG has processed more than 2,000 comments received from market participants.
The Plenary approved publication on behalf of the and the CSG of version 7.0 of the SCS Volume (see ‘related links’ below), ready for market implementation, in January 2014. The six books of the SCS Volume version 7.0 cover a set of requirements applicable to card-present (face-to-face) transactions to allow investment decisions and implementation based on stable requirements. All stakeholders and interested parties active in the cards domain are encouraged to roll out services and products in line with the requirements set out in version 7.0 of the SCS Volume in a three-year period, i.e. by January 2017.
For more information, refer to the article, entitled ‘ and Cards Stakeholders Group Publish the Cards Standardisation Volume Ready for Market Implementation’ in this edition of the Newsletter (see ‘related articles in this issue’ below).
Approval of final version of the white paper on mobile wallet payments
With mobile devices having achieved near full market penetration and increasingly rich functionality they are an ideal channel for payment instruments. Creating ease, convenience and trust for end-customers (payers/consumers and beneficiaries/merchants) is regarded as critical for the further development of mobile payments (m-payments). Since a mobile wallet may be considered a key tool to address these challenges, the has decided to devote a white paper to this concept in relation to m-payments. This document outlines among other things, how trust in, (and availability of), a wide range of easy to use services offered with mobile wallets may be seen as a facilitator for m-payments. In July 2013 the issued a first draft of the white paper on mobile wallet payments to seek comments from all interested parties and received feedback from 18 different stakeholders. Subsequent to careful analysis of the contributions received, the has now published a final version of the white paper (see ‘related links’ below).
For more information, refer to the article, entitled ‘ Publishes Updated Mobile Wallet Payments White Paper’ in this edition of the Newsletter (see ‘related articles in this issue’ below).
Approval of the analysis regarding aspects related to third party payment service providers and Article 67 (refund rights for direct debits) included with the European Commission’s proposal for the revised Payment Services Directive
The Plenary approved the position on the European Commission’s (the Commission’s) proposal for the revised Payment Services Directive (). Following a detailed analysis of the Commission’s proposal for the , the has identified considerable scope for amendment of the proposed new set of rules related to the activity of so-called third party payment service providers offering payment initiation or payment account information services. The also calls attention to the fact that will continue to be of particular relevance with respect to Direct Debit services due to the fact that it defines common rules for the authorisation and the refund of direct debits. The sees a pressing need for review of the proposed new Article 67, (entitled ‘Refunds for payment transactions initiated by or through a payee’), regarding the details of the unconditional refund right for direct debits.
For more information, refer to the article, entitled ‘: Key Considerations Address Aspects related to Third Party Payment Service Providers and Article 67 (Refund Rights for Direct Debits)’ in this edition of the Newsletter (see ‘related articles in this issue’ below).
Approval of the Credit Transfer () Rulebook version 7.1, Direct Debit () Core Rulebook version 7.1 and Business to Business (B2B) Rulebook version 5.1 taking effect on 1 February 2014
The payment schemes, as set out in the and Rulebooks, evolve based on a transparent change management process adhered to by the . This evolution reflects changes in market needs and updates of technical standards developed by international standards bodies, such as the International Organization for Standardization (ISO). For details on the and rulebook release management and scheme development, refer to the ‘related links’ below.
Since the launch of the and Schemes, the has generally published updated versions of the rulebooks and associated implementation guidelines once annually in November. These updated versions normally take effect in the third week of November of the following year. In accordance with industry best practice, all stakeholders and their suppliers therefore have sufficient lead time to address rulebook updates prior to such changes taking effect.
In November 2012, the published:
- The Rulebook version 7.0.
- The Core Rulebook version 7.0.
- The B2B Rulebook version 5.0.
As communicated in 2012, the decided to postpone the effective date for the Rulebook version 7.0, Core Rulebook version 7.0 and B2B Rulebook version 5.0 published in November 2012, from 16 November 2013 to 1 February 2014. This allows market participants to adapt their systems and operations to comply with both the ‘Regulation () No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro’ (the Regulation), which effectively mandates migration to and in the euro area by 1 February 2014, and new rulebook versions. (For latest information on the Regulation, refer to the Website page, entitled ‘ Legal and Regulatory Framework’ included in the ‘related links’ below.)
The Rulebook version 7.0, Core Rulebook version 7.0 and B2B Rulebook version 5.0 published in November 2012 have been updated to include a few editorial amendments. The updated rulebook versions to take effect on 1 February 2014 remain unchanged from a functional or technical point of view; i.e. changes introduced into the updated versions are of a purely administrative nature and have no operational impact whatsoever.
As a main change, the updated rulebook versions no longer reference the concept of a ‘Pan-European Automated Clearing House (PE-ACH)’ nor the document, entitled ‘PE-ACH/Clearing and Settlement Mechanism (CSM) Framework’. The resolved to withdraw the document ‘PE-ACH/Clearing and Settlement Mechanism (CSM) Framework’, which was first published in January 2007, from publication, because it is no longer required at this stage in the process.
The rulebook versions approved by the Plenary that take effect on 1 February 2014 are therefore, the Rulebook version 7.1, the Core Rulebook version 7.1 and the B2B Rulebook version 5.1. The interbank and customer-to-bank implementation guidelines related to the and Schemes published in November 2012 remain unchanged and will also take effect on 1 February 2014. The rulebook versions and associated implementation guidelines taking effect on 1 February 2014 are available on the Website pages dedicated to the and Schemes, respectively, included in the ‘related links’ below.
Inclusion of San Marino in the jurisdictional scope of and Schemes
The Plenary agreed to extend the jurisdictional scope of the Schemes to eligible banks or payment service providers from San Marino effective 1 February 2014. As of that date, the jurisdictional scope of the Schemes will thus consist of the 28 Member States plus Iceland, Norway, Liechtenstein, Switzerland, Monaco and San Marino. The duly amended List of Scheme countries is also made available on the Website (see ‘related links’ below).
Javier Santamaría is the Chair of the .
Website: SEPA Credit Transfer
Website: SEPA Direct Debit
Website: SEPA Legal and Regulatory Framework
Related articles in this issue:
EPC and Cards Stakeholders Group Publish the Cards Standardisation Volume Ready for Market Implementation. Stakeholders active in the cards domain are encouraged to align services and products with version 7.0 of the Cards Standardisation Volume by January 2017
PSD2: EPC Key Considerations Address Aspects Related to Third Party Payment Service Providers and Article 67 (Refund Rights for Direct Debits). EPC identifies considerable scope for amendments to European Commission PSD2 proposal
Related articles in previous issues:
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