At the beginning of February 2014, the Single European Payments Area, a payment integration initiative of the European Union, will be in full operation. The aim of the project is to improve the efficiency of cross border payments and to turn the many national clearing systems into a single payment area.
From February 1 2014, SEPA will have changed the way payments and direct debits are processed in Ireland and across Europe. The advantages of SEPA include better cash flow management and seamless integration with banking systems which in the longer term will lower costs, but companies across Europe must have completed migration on time to avoid widespread cash flow disruption.
“There has been a lot of confusion about SEPA but companies are now turning to the realisation that a solution is required, adequate time remains to become SEPA compliant but action is required now” according to Keith Harrington CEO of Volteneo.
On February 1 2014, all financial transactions will require a BIC or Business Identifier Code, which will replace the bank sort code, and an IBAN, or International Bank Account Number for domestic and international transfers. Keith Harrington from Athlone, CEO of Volteneo, a company based in the midlands which specialises in payment technology, has studied the EU regulations and SEPA rule books.
Mr Harrington who gained over 15 years experience in the financial technology sector in London, knows exactly what the risks of missing the looming February deadline are. "Right now we are totally focused on simplifying SEPA direct debits for our customers with particular attention to the control of direct debit amendments and rejections, as in many cases these will result in additional bank fees if not managed properly" said Keith.
Volteneo has successfully carried out integration testing with all domestic banks including the Bank of Ireland, Ulster Bank, AIB and Permanent TSB. With less than 50 days to go, companies face immediate challenges to meet the deadline on time and avoid payment disruption. For further information on SEPA, and how it will affect your business, contact www.volteneo.com .