They are the building blocks of most ’ euro credit transfer and direct debit solutions. They also enable their interoperability in .
A payment scheme is a set of rules which have agreed upon to execute transactions through a specific payment instrument (such as credit transfer, direct debit, card, etc). It is different from a payment system, which is a technical infrastructure that processes transactions in line with the rules defined in a payment scheme.
Most euro credit transfers and direct debits rely on the schemes
The payment schemes are the rules underlying the euro credit transfer and direct debit solutions proposed by all (mostly banks) in . Simply put, when doing credit transfers and direct debits in euros (in a single country or across ), a service created on the basis of the ’s payment schemes is used. These schemes contribute to the creation of a single payments market in Europe by making it possible for consumers to rely on just one payment account to make euro credit transfers and direct debits not only in their own country, but also in – an area larger than the European Union.
The has created four distinct schemes:
- The Credit Transfer
- The Instant Credit Transfer
( Inst) scheme.
- The Direct Debit () Core
( Core) scheme.
- And the Business-to-Business
( B2B) scheme.
As a result of the Regulation, the and Core schemes are mandatory for all offering euro credit transfer and direct debit services in the European Economic Area. The Inst and the B2B schemes are optional: are free to propose services based on these schemes.
The schemes rulebooks are publicly available on the website. However, wishing to use them have to formally participate, adhere to the schemes and pay an annual scheme participation fee.
Harmonised rules that leave room for flexibility
The schemes attach the general rules enabling harmonised credit transfers and direct debits. Yet they also allow to provide additional services of their choice to the actual payment products in order to meet specific customer needs.
- A rulebook. This contains the set of business rules, obligations, and technical standards for the execution of payment transactions. It can be regarded as an instruction manual that provides a common understanding on how to move funds from account A to account B within . For example, the rulebook defines in which currency (euro) a transaction must be made, and the various steps and maximum duration have to respect for such transactions.
- Implementation Guidelines (). These are the technical translations of the rulebook into ISO 20022 payment messages enabling transactions.
- The Scheme Management Internal Rules (SMIRs). This document – common to all schemes – explains the principles governing the administration and evolution of the scheme.
In addition, the publishes clarification papers on a case-by-case basis covering specific topics related to the schemes’ implementation.
All the schemes respect the principles defined in the Payment Services Directive, and are overseen by the Eurosystem.