SEPA Netherlands – working with the euro countries towards a single European payment system

The introduction of SEPA in the Netherlands and the other euro countries is creating unity in European payments. De Nederlandsche Bank (DNB) is there to provide you with the information you need.

The Netherlands part of SEPA

We have shared the same euro coins and notes since 2002 in a major part of Europe. And from January 2008 we have common European credit transfers en from July 2010 we also have common European direct debits. Moreover the bank card will get a European reach. People and businesses in all the euro countries eventually will be able to pay the same way everywhere, both at home and in other euro countries. Step by step, this is creating one large 'Single Euro Payments Area' or SEPA.

Introduction of SEPA in the Netherlands

European credit transfers and European direct debits are based on common European standards and international account numbers that can be processed all over SEPA. Eventually those European payment products replace the existing Dutch ones in order to pave the way for a single Euro payments market. It will take a couple of years to realise SEPA. An end date for the use Dutch credit transfers and direct debits has not been set yet. For you as a consumer the transition should go off smoothly.

SEPA: changes for Dutch consumers

In 2008 the European credit transfer was introduced. Initially, it comes in digital form only and allows you to transfer funds to payment accounts at over 4,500 banks, in the Netherlands and throughout 31 other countries. A paper form will follow at a later date. The existing credit transfer form (overschrijving) is to be continued for the time being.

Chip-based European bank card
In 2010 nearly all bank cards issued in the Netherlands are chip based. The new cards will increasingly be accepted by payment terminals and cash dispensers (ATMs) in the euro countries. The cards will be safer to use because the chip technology is more fraud proof than the magnetic stripe technology.

European direct debit
In 2010 the European direct debit will be introduced in SEPA. This product will allow organisations to debit people’s accounts throughout the euro area in a uniform way.

History of SEPA

The introduction of the cash euro in 2002 was a milestone. However, non-cash credit transfers have still remained different from one euro country to the next. Each euro country has its own payment systems, with their own direct debits, credit transfers and bank card brands. Where the Netherlands uses the PIN brand, other countries use different brands. This means you cannot use your Dutch bank card to pay at e.g. every French supermarket.

Since back in the 1990s the European Union has called for the creation of a single European payments market. European commercial banks have been working hard to realise the introduction of SEPA. They have united in the European Payments Council (EPC). The EPC draws up common rules, standards and agreements, which serve as the basis for banks to develop payment products. It is up to the banks to decide when to float their new products on the market. The European political authorities provided for a European statutory framework in order to harmonise national legislations concerning euro and non-euro payments

Legal aspects

SEPA’s legal basis is to be elaborated by the European Commission in its Payment Services Directive. The PSD sets out the rights and obligations for both users and providers of payment products. Its objective is to protect consumers and to encourage competition in order to promote the development of affordable and innovative products. This European Directive has been implemented in Dutch legislation since November first 2009.

DNB and SEPA

The introduction of a European payments market will affect both businesses and consumers. Banks and enterprises must invest in new payment systems and products. Consumers and enterprises will be offered novel payment products replacing the legacy products.

DNB is responsible for the smooth operation of the payment system. It is committed to a successful introduction of the European payment market. Also, it emphasises the importance of safety, efficiency and accessibility: everyone must be enabled to pay quickly and easily, without worrying about the safety and reliability of payment products and systems. And payment systems.