SEPA Frequently Asked Questions

Single Euro Payment Area (SEPA): Frequently Asked Questions

1. What countries does SEPA cover?

SEPA covers 32 countries in Europe.

Eurozone countries in EU
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain

Non-Eurozone countries in EU
Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden, UK

EEA members
Iceland, Liechtenstein, Norway

Additional SEPA countries
Monaco, Switzerland

2. What are the key aspects of the SEPA End Date Regulation that will affect me?

Under the SEPA End Date Regulation local domestic file formats will be demised and all Credit Transfers and Direct Debits instructions will need to be in XML file format. There may therefore be a requirement for you to change the file format you currently submit and this may require the engagement of your IT vendor. While there are some countries that may have a temporary solution in place to allow the processing of some local country formats beyond this date, we recommend that you begin to plan now in accordance with the 1 February 2014 date and our team would be pleased to discuss these solutions with you further.

In addition, SEPA requires Business Identifier Code (BIC) and International Bank Account Number (IBAN) details, where the BIC is necessary – until 1 February 2014 (some exclusions may apply) – and you may need to request these from your payment beneficiaries/Direct Debit debtors in preparation for this change.

Specifically, for Direct Debits, SEPA introduces new obligations for Creditor, e.g. obtaining a Unique Mandate Reference number and Creditor ID and also the responsibility for managing mandates.

3. What is the XML format?

XML (eXtensible Mark-up Language) is a standardised syntax for messages that emphasises simplicity, generality, and usability. It allows corporates’ back office systems to communicate efficiently with bank systems. From 1 February 2014 (some exclusions may apply), it will be a legal requirement for this format to be used for the exchange of all SEPA transactions between corporates and banks in the Eurozone.

4. What do I need to do to prepare for this change?

Plan your migration as part of your 2013 deliverables
Set up a dedicated SEPA project team and engage key stakeholders as early as possible to assess the scope and impact of the transition.

Engage suppliers and customers now
Obtain BIC/IBAN details from payees and ensure that your BIC/IBAN details are added to your invoices for customers to use.

Engage your IT vendor to ensure that your ERP (back office) system is SEPA compliant
E.g. Can your ERP system store BIC/IBAN details and produce XML format?

5. I input payments directly to a country specific screen on HSBCnet, what will change?

The country specific screens will be replaced with a SEPA compliant screen in due course. A Eurozone screen can be made available to allow for SEPA compliant payments. Our Migration team will be in touch with you to explain this and coordinate the change with you.

6. How will HSBC help me?

To assist with a smooth transition HSBC is offering you a dedicated team to understand your migration needs in detail and advise you on the steps to take to ensure you are SEPA compliant by the designated date. Our client migration team is in the process of initiating contact with all customers directly affected by SEPA requirements by the end of June 2013. Depending on your business needs, you will either receive a package by mail detailing next steps or will be contacted by phone to discuss the migration process. Our pan European presence, global XML expertise and state of the art technical capabilities give us a real advantage in providing a coordinated delivery of SEPA.

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	Single Euro Payment Area (SEPA): Frequently Asked Questions 1. What countries does SEPA cover? SEPA covers 32 countries in Europe. Eurozone countries in EU Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain Non-Eurozone countries in EU Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden, UK EEA members Iceland, Liechtenstein, Norway Additional SEPA countries Monaco, Switzerland 2. What are the key aspects of the SEPA End Date Regulation that will affect me? Under the SEPA End Date Regulation local domestic file formats will be demised and all Credit Transfers and Direct Debits instructions will need to be in XML file format. There may therefore be a requirement for you to change the file format you currently submit and this may require the engagement of your IT vendor. While there are some countries that may have a temporary solution in place to allow the processing of some local country formats beyond this date, we recommend that you begin to plan now in accordance with the 1 February 2014 date and our team would be pleased to discuss these solutions with you further. In addition, SEPA requires Business Identifier Code (BIC) and International Bank Account Number (IBAN) details, where the BIC is necessary – until 1 February 2014 (some exclusions may apply) – and you may need to request these from your payment beneficiaries/Direct Debit debtors in preparation for this change. Specifically, for Direct Debits, SEPA introduces new obligations for Creditor, e.g. obtaining a Unique Mandate Reference number and Creditor ID and also the responsibility for managing mandates. 3. What is the XML format? XML (eXtensible Mark-up Language) is a standardised syntax for messages that emphasises simplicity, generality, and usability. It allows corporates’ back office systems to communicate efficiently with bank systems. From 1 February 2014 (some exclusions may apply), it will be a legal requirement for this format to be used for the exchange of all SEPA transactions between corporates and banks in the Eurozone. 4. What do I need to do to prepare for this change? *Plan your migration as part of your 2013 deliverables* Set up a dedicated SEPA project team and engage key stakeholders as early as possible to assess the scope and impact of the transition. *Engage suppliers and customers now* Obtain BIC/IBAN details from payees and ensure that your BIC/IBAN details are added to your invoices for customers to use. *Engage your IT vendor to ensure that your ERP (back office) system is SEPA compliant* E.g. Can your ERP system store BIC/IBAN details and produce XML format? 5. I input payments directly to a country specific screen on HSBCnet, what will change? The country specific screens will be replaced with a SEPA compliant screen in due course. A Eurozone screen can be made available to allow for SEPA compliant payments. Our Migration team will be in touch with you to explain this and coordinate the change with you. 6. How will HSBC help me? To assist with a smooth transition HSBC is offering you a dedicated team to understand your migration needs in detail and advise you on the steps to take to ensure you are SEPA compliant by the designated date. Our client migration team is in the process of initiating contact with all customers directly affected by SEPA requirements by the end of June 2013. Depending on your business needs, you will either receive a package by mail detailing next steps or will be contacted by phone to discuss the migration process. Our pan European presence, global XML expertise and state of the art technical capabilities give us a real advantage in providing a coordinated delivery of SEPA.



Please do not reply to this e-mail. Our postal address: HSBC Group Head Office 8 Canada Square London UK E14 5HQ You received this e-mail notification because you are a registered User of HSBCnet. Should you have any concerns regarding the validity of this message, please contact your local HSBCnet customer support. We maintain strict security standards and procedures to prevent unauthorised access to information about you. HSBC will never contact you by e-mail or otherwise ask you to validate personal information, such as your Username, Password or account numbers. If you receive such a request, please call your local HSBCnet customer support. Links within our e-mails will only take you to information pages. If you wish to unsubscribe from receiving service information from HSBCnet, please click here. © Copyright. HSBC Bank plc 2013. All rights reserved. Privacy & Data Protection Statement \| Terms & Conditions