Many of your have probably heard about SEPA and the changes which will occur from 2014 onwards. Here you find a few words from us how we are going to deal with the topic.

What is SEPA and how does PAYMILL deal with it?

The Single European Payments Area (SEPA) is the Europe-wide unification of the different national payment methods in bank transfers and direct debits to a uniform European standard. SEPA has been fixed in the “Regulation on the technical requirements for credit transfers and direct debits in euros and amending Regulation (EC) No 924/2009,” on March 31st in 2012. SEPA will be implemented from February 2014 and will be available in the 27 EU-countries, as well as Iceland, Liechtenstein, Norway, Monaco and Switzerland.

The core of the new European payment scheme is the consistent use of international bank account number (IBAN) and bank identifier code (BIC). Among the advantages of SEPA is one massive facilitation of cross-border payments, but also faster and cheaper bank transfers and direct debits.

As already today a large number of online retailers abroad generate substantial revenues, SEPA will also benefit aspects of e-commerce operators. Merchants will be able to accept payment cards from all SEPA countries and back office processes will be simplified. Especially for smaller businesses (SME) faster settlement and simplified processing will improve cash flow and reduce costs. It will enable them to receive or make euro-payment anywhere within SEPA on the same basis.

Even though today almost everyone knows what’s behind the concept of SEPA, many companies still have a need for clarification concerning the details of the European payment scheme.

PAYMILL is prepared and adapting slowly to SEPA while maintaining the functionality of the current direct debit system in parallel. On the one hand PAYMILL starts to implement step-by-step sure-to-come features (IBAN/BIC); on the other hand PAYMILL will wait until final features to SEPA are determined to offer you the SEPA direct debit payments in addition to the currently offered German ELV.

If you have any more questions regarding the topic feel free to contact us any time, best via e-mail to

Happy to hear from you!

Guest Blogger

This is a guest post written by one of our contributors.