Today, representatives of the central bank, the Estonian Banking Association, the Ministry of Finance and market participants met in the Estonian Payment Forum in Eesti Pank to discuss the changes that need to be made next year for carrying out credit transfers and direct debits so that they would comply with the rules of the SEPA (Single Euro Payments Area). For this purpose the banks are developing a new payment service based on e-invoices. The changes will be made by banks and companies, customers will not need to take any action.

When the new rules and procedures of single European payment area start to apply from February 2014, banks will have to stop providing direct debits in their current form and so during the next year they are developing their domestic direct debit services into e-invoice service with automatic payment. For customers the change will happen automatically, though the content of the services might change slightly, in which case the bank will give their clients sufficient notice of the change.

There will be no major changes in credit transfers for customers, but from the start of 2014 it will be necessary to use the international form of the bank account number, the IBAN, when making payments.

Companies and public authorities will be affected by the changes because they will have to update their accounting software and improve the billing in order to ensure that payments and e-bills are sent to the bank as smoothly as possible. During the first quarter of next year the banks will advise their clients on what the changes are and what needs to be done. Further information and answers to questions can be obtained from the banks.

In addition to this, the banks will start to offer their clients the new service of cross-border SEPA direct debits, meaning that customers will be better able to make payments for services provided outside Estonia. The providers of SEPA direct debit services will compete in the market and be chosen by client demand.

The Estonian Payment Forum was established jointly in April 2012 by Eesti Pank, the Estonian Banking Association and the Ministry of Finance. The forum is chaired by Eesti Pank. More detailed information about the Forum, including the topics discussed there and the participants, can be found in Estonian at www.pangaliit.ee/et/maksefoorum.

For further information:
Hanna Vaga
Public Relations Office
tel: 668 0959, 509 7285
email: [email protected]
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