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 all the information you need.

SEPA: the Netherlands is in on the new system

We have shared the same euro coins and notes since 2002. Soon we will also have a European bank card and European credit transfers and direct debits. People and businesses in all the euro countries 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 European Payments Area' or SEPA.

Introduction of the SEPA payment system in the Netherlands

On 28 January 2008, over 4,000 European banks embarked on the first stage of a new European payments market with the introduction of the European credit transfer. Further stages will follow over the next few years. For you as a consumer the transition should go off smoothly.

The SEPA payment system and changes for Dutch consumers

In 2008 are launching the new European credit transfer. Initially, it comes in digital form only and allows you to transfer funds to payment accounts in the Netherlands and throughout the euro area. 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
Banks intend to roll out new chip-based bank cards as from 2008. 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 late 2009, European direct debits will be introduced as well. 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, noncash credit transfers have 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 cards. Where the Netherlands uses the PIN system, other countries use different systems. This means you cannot use your Dutch bank card to pay at e.g. a French supermarket.
Since back in the 1990s the European Union has called for the creation of a single European payments market. The European political authorities have decided to draft a European statutory framework in order to harmonise national legislations concerning euro and non-euro payments.

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.

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.

DNB and the SEPA payment system

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 will be offered novel payment 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 must be accessible to everyone.