Press Release: Payments: Commission and ECB support launch of pan-European SEPA Direct Debit; provide guidance to industry

The European Commission and the European Central Bank (ECB) encouraged the European Payments Council ('EPC') to move ahead with the launch of the SEPA Direct Debit scheme. Under this scheme, bank customers would be able to arrange direct debits to pay companies with bank accounts in any of the 31 European countries participating in SEPA (Single Euro Payments Area). The Commission and ECB recognised the potential advantages of the SEPA Direct Debit scheme, in terms of economies of scale and increased competition liable to drive efficiency and innovation in the area of payments to the benefit of European consumers and companies. The Commission and the ECB indicated to the EPC that they would be prepared to support the idea of a 'multilateral interchange fee' for cross border direct debits within the framework of the SEPA scheme on condition that such fees were objectively justified and transitional (applicable only for a limited period).