EC U-turn on Sepa direct debits
The EC and ECB have conceded to allow “transitional” fees for Sepa direct debits
BRUSSELS & FRANKFURT – The European Commission (EC) and European Central Bank (ECB) are calling on banks to accelerate plans for crossborder direct debit schemes, whether or not interchange fees are charged for the payments.
The EC’s move may be viewed as a reaction to the banking sector’s sluggish implementation of harmonised crossborder payments within the Single Euro Payments Area (Sepa), under the delayed Payment Services Directive (PSD).
The EC and ECB said in a September 4 joint statement that they have indicated to the European Payments Council (EPC) that they were prepared to support multilateral interchange charges, provided fees are “objectively justified and transitional”.
“A European solution has to be found by the banks which is also agreeable to the competition authorities,” said Gertrude Tumpel-Gugerell, Frankfurt-based ECB executive board member. “But Sepa direct debits have to be rolled out in a little more than one-year from now.”
“In this respect, the idea of maintaining at national level the same interchange fee for national legacy and Sepa schemes during a limited transitional phase should facilitate the rolling out of the Sepa direct debit scheme,” said Tumpel-Gugerell. “This would also ensure the necessary level playing-field in the national context for the Sepa direct debit scheme and the national legacy direct debit schemes.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
EU banks hedge net interest income to pass new IRRBB test
Would-be outliers look to cut sensitivity of cashflows to rate moves, but at what cost?
Banks cry foul over shock decision from Basel Committee
Asset and liability management professionals question severity of criteria in revised IRRBB tests
Fresh EU push for single securities supervisor to compete with US
But MEP expresses ‘concern’ EU nations will stall revival of capital markets union
Discord deepens over fund-linked trades in FRTB
More banks use punitive approach to capital treatment under new trading book regime, irking regulators
AI, quantum computing and tokenisation set to transform finance – Menon
But significant barriers remain preventing the technologies from unlocking their full potential
Could the SEC revive the private fund adviser rule?
Industry experts deem a second life for the reviled rule unlikely
Vendors lack silver bullet for FRTB’s fund-linked issue
EU and UK legislators tried to ease capital charge by leaning on vendors, but problems persist
Does Basel’s internal loss multiplier add up?
As US agencies mull capital reforms, one regulator questions past losses as an indicator of future op risk