SEPA – The Single Euro Payments Area

At the moment, there are many different payment areas, or "clearing systems" in Europe which often hinders cross-border payment services. The European Union believes that consumers and businesses will benefit from a single payment area where all the banks offer the same type of product adopting the same format, based on the same terms and conditions. We at HSBC agree with that view.

The European Payments Council has set out the rules, practices and standards around which banks must comply for payments between the "SEPA Zone" countries. The first phase of SEPA will see the introduction of the SEPA Credit Transfer (SCT) which becomes effective from 28 January 2008.

From this date, customers can make SEPA compliant payments up to £2,000 (or the local currency equivalent) through HSBC Personal Internet Banking.

For those HSBC customers that expect to receive SEPA payments:

Make sure the sender knows your Bank Identifier Code (BIC) and International Bank Account Number (IBAN) – you can find this on your bank account statement. We will credit your account with the proceeds no longer than three working days after the sender instructed the payment. SEPA payments can only be made in euro, but can be credited to an account denominated in local currency. If there is any foreign exchange, we'll let you know about the exchange rate when the payment is received into your account.

What will change from my point of view?
If you currently receive European payments, you could receive SEPA payments in the future in just the same way and you probably won't think much is different. You may notice some additional information about the payment on your advice or statement.

Do I need to do anything?
No. However, we recommend that you share your BIC and IBAN details with anyone that sends euros to your bank account.