Europe launched the SEPA direct debit schemes

Today the final SEPA core product is put on the European payments market – SEPA direct debits. In Latvia, the most recent SEPA product will be offered by JSC "SEB banka".

As of 2 November 2009, 2 607 banks in 32 SEPA countries settling about 70% of the entire direct debit payments have commenced offering SEPA direct debit payments. Of them, 2 366 banks provide direct debit payments within the framework of the core scheme and business to business scheme. Along with the implementation of direct debit services, customers of the European Union Member States and other SEPA countries – Iceland, Liechtenstein, Norway, Switzerland and Monaco are offered a new opportunity to execute cross-border direct debit payments in euro subject to harmonised technical standards, commercial and legal framework from anywhere in Europe.

At the same time, Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community applies as of 1 November 2009, stipulating with respect to the customer account reachability for direct debit payments that a payment service provider of a payer reachable for national direct debit payments in euro on the payment account of that payer shall be reachable, in accordance with the direct debit scheme, for direct debit payments in euro initiated by a payee through a payment service provider located in any Member State of the European Union by 1 November 2010.

Hence this would mean that a bank in Latvia, in accordance with the requirements of SEPA direct debit scheme, shall provide reachability of its customer accounts for direct debit payments in euro initiated by a company via its bank regardless of the bank's location in any Member State of the European Union.

Although Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 stipulates that reachability of customer accounts in those Member States of the European Union which do not have the euro as their currency shall be provided by 1 November 2014, in Latvia, JSC "SEB banka" has ensured reachability for SEPA direct debit payments as of 2 November 2009. Other banks in Latvia have also committed to offer the SEPA compliant direct debit payments in euro gradually.

Direct debit payments will enhance consumer – payer  choice with respect to paying for goods and services from their accounts in Latvia, giving a possibility to conclude a direct debit agreement with any company – any payee in any SEPA country and ensuring safe, cheap and efficient cross-border payments.

At the same time, Latvian companies – payees will also be offered the opportunity to use direct debit payments in order to pay for the delivered goods and services by entering into agreements with consumers – payees from other SEPA countries.

As of 2 November 2009, JSC "SEB banka" will enable its customers –  payers to pay for the delivered goods and services to the companies – payees who are located in any of the SEPA countries and with whom the direct debit agreements are concluded.