Press Release: Payments: Commission and ECB provide further clarification to ensure timely launch of Single Euro Payments Area (SEPA) Direct Debit scheme

The European Commission and the European Central Bank (ECB) issued a joint statement providing further clarification so as to encourage the European Payments Council (EPC) to launch the SEPA Direct Debit scheme (SDD) on 1 November 2009. In particular, the Commission made clear that a general per transaction multilateral interchange fee (MIF) for direct debit transactions does not seem justified for efficiency reasons and therefore does not appear compatible with EU antitrust rules. The Commission and the ECB also noted that the forthcoming approval of the revised Regulation on cross-border payments will provide a three-year transitional regime for the SDD business model. The clarifications provided aimed at the long-term i.e. after 1 November 2012 and were based on earlier statements issued by the EC and the ECB.