SEPA Payment Schemes in Hungary
The main objective of Hungarian SEPA Association is to support the development and implementation of SEPA payment schemes in Hungary.
3 January 2012
What is SEPA?
SEPA is a common European payment instrument to send and receive EURO payments in the European Economic Area(EEA).The short and easy-to-remember word carries important content for both payment service providers and their customers. It does not only mean the geographical area of the EEC member states, but also applied in this particular area as an uniform method of payment in euro including of use of debit and credit cards.
Euro payments conducted by the SEPA payment methods are considered as domestic payments in the Single Euro Payments Area.
SEPA in Hungary
The assistance of European - including domestic - banks established a uniform payment methods practical implementation began in January 2008 with the introduction of SEPA bank transfers, and then it was continued with potential introduction of SEPA direct debit schemes from 1 November 2009. SEPA payment scheme is avaialble for customers at several Hungarian banks, and SEPA direct debit scheme is also expected to be offered in near futur.
Significance of SEPA payments
In Single Euro Payments Area, it is exclusively designed and applied for euro payment schemes to provide customers with a transparent, efficient and convenient finanacial services. This is possible by decomposition of differences in local custom of Member States and applying the principles of the single euro payment.
EURO transfer in one business day
In case of SEPA bank transfer, the full funds - without any deduction of bank fees - goes from payer's account to beneficiary's account. Both parties solely pay fees for their own service provider.
SEPA bank transfer is guaranteed to be lodged on beneficiary's account maximum in three business days from date of bank transfer. From 2012, however, this time will be as short as one business day.
Local banks offer lower fees and charges for SEPA bank transfers compared to other applied payment methods in general.
SEPA Credit Transfer (SCT)
To enable these advantages, customers need to get their and their partner's important data, code from payment service provider:
IBAN = International Bank Account Number
BIC/SWIFT = Bank Identifier Code
Important condition of SEPA credit transfers:Both customer and his/her partner's bank - so both banks - are to be involved in SEPA agreement that application of these payments method are established. To find out which banks are in SEPA, customers may request information from their service providers.
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