Credit Transfer
The basis for the basic credit transfer scheme (CredEuro) was to implement an efficient, low cost, end-to-end scheme for basic cross-border STP credit transfers in euro. This would remove any disparity on the transfer of funds within the SEPA region, to ensure that funds are transferred throughout the SEPA region as if they were domestic payments and to ensure that the transfers are as fast and secure as they would be under a domestic system. The implementation of the Credit Transfer scheme has been possible with the implementation of open standards and best practices throughout the SEPA region.
This has required the introduction of the IBAN Europe wide and now is mandatory for credit transfers across the SEPA region. This will affect corporates and individuals over as failure to give a valid IBAN and BIC will mean that the receiving bank can reject the payment or levy higher charges to repair the payment. This has led to the requirement for changes to Banks and corporates payment systems to ensure that they are cleansing payment data prior to it leaving the institution thereby reducing expensive delays and charges.
PriEuro
Priority Payments Scheme will compliment the CredEuro scheme allowing faster payments. The PriEuro scheme will enhance credit transfers by being a same day payments scheme, although this is an optional section of the scheme.
Below is a diagram showing the Credit Transfer flow under the SEPA scheme
