08 March 2006

EPC approved SEPA cards framework

The European Payments Council (EPC) approved the new European schemes for credit transfers, direct debits and the SEPA Cards Framework. This Framework spells out high level principles and rules which when implemented by banks, schemes, and other stakeholders, will enable European customers to use general purpose cards to make payments and cash withdrawals in Euro throughout the SEPA area with the same ease and convenience than they do in their home country.

There should be no differences whether they use their card(s) in their home country or somewhere else within SEPA. No general purpose card scheme designed exclusively for use in a single country, as well as no card scheme designed exclusively for cross-border use within SEPA, should exist any longer.

The Framework is aimed at building an environment in which there are neither technical nor legal or commercial barriers which stand in the way of cardholders, banks and merchants choosing and using SCF compliant payment and ATM access card products. Each of the parties should be able to make a choice based on value considerations alone whether they wish to adopt a particular card product or brand, and have this choice fully supported by technical interoperability, and not constrained by lack of pan-European acceptance.

The banking industry plans to make the European products available to bank customers in 2008 in addition to the existing payment instruments. However, the replacement of currently established national payment schemes will depend on the development of the market.

Framework

© European Payments Council