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SEPA Credit Transfer and SEPA Direct debit deadline for non-euro area counties: October 31, 2016.

The Regulation sets the final end-date for “legacy” national euro credit transfer and direct debit schemes. After October 31, 2016 all € remittances among EU member countries have to be use SEPA (Single Euro Payment Area) message standard. This regulation is affected in the United Kingdom, Poland, Czech Republic, Hungary, Croatia, Romania, Bulgaria, Lithuania and Latvia. When moving from the traditional SWIFT FIN message standard to SEPA (ISO20022) the following difference can be perceived:

  • SEPA using XML data format what is not obvious to be able to handle
  • SEPA message contains more data than SWIFT FIN and all transferred data must be received by beneficiary party (the rule is applicable to cross bank remittances also)
  • SWIFT messaging fee for XML message is significantly cheaper than SWIFT FIN, so the implementation is reasonable also
  • Able to broaden of product portfolio with all European Direct Debit service


When implementing this obligation the following challenges have to be covered:

  • Not all international money transfer use SEPA message standard
  • Production of appropriate SEPA XML messages according to the format rules
  • All data content of received SEPA message must be stored and provided for further processing
  • All applicable SEPA message fields have to be offered to debtor to use according to message standards 


Because to the above detailed challenges, it is offered to implement Payment Message Hub (developed by Simplexion) to effectively fulfil regulation changes. With using of Payment Message Hub the following benefits are available:

  • Solve format conversation between SWIFT FIN and SEPA message standards to avoid any modification of core banking system
  • Rule based selection of messages to conversion
  • Able to store all incoming and outgoing messages to handle additional data caused by the new message standard
  • Able to connect core banking system with several interface protocol (e.g. webservice, queue, file transfer)
  • Able to connect to SWIFT infrastructure with using the implemented message integrity 


If you like our ideas please do not hesitate to contact with me!

Levente Vilmos Kovács
Mobile: +36-20/951-11-49

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