05 November 2020

European Payments Council: Brexit reminder: how to get ready for the end of the transition period

The UK will maintain participation in the Single Euro payments area geographic scope. However, this important change will make the Credit Transfer/Direct Debit rules applicable to transactions from/to non-European Economic Area jurisdictions also applicable to transactions with the UK.

As of 1 January 2021 the United Kingdom (UK) is set to leave the single market and customs union, either with an European Union - UK deal, negotiated during the transition period, or without it (i.e. "no-deal" Brexit).

The UK will at that point maintain participation in the Single Euro payments area  geographic scope. However, this important change will make the Credit Transfer / Direct Debit rules applicable to transactions from/to non-European Economic Area  jurisdictions also applicable to transactions with the UK. The EPC herefore wishes to remind all of the need to implement without delay the measures described below, to ensure a continued smooth processing of cross-border payments involving a UK-based payment scheme participant after 31 December 2020. 

The EPC strongly recommends each payment scheme participant to identify as soon as possible its customers with incoming and outgoing cross-border transactions involving both a UK and an payment account, and to inform all customers concerned about the need to provide these extra transaction data as from 1 January 2021 (as execution or settlement date).

Payment scheme participants with questions on the above are invited to contact the relevant National Adherence Support Organisation (NASO) or the directly.

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