3rdforum wrote:cash is king then!
well you cant use UK Pound DEBIT CARDS in europa from 2016 ,only SEPA STANDARD CARDS can be used
The Single Euro Payments Area (SEPA) creates a true European Single Market for retail payments in euro where transfers, direct debits and payments between Member States are as easy and fast as the equivalent domestic transactions. It will become fully operational in all eurozone countries on 1st August 2014. It will also apply to euro-denominated transactions in non-eurozone countries from 30th October 2016. SEPA will greatly facilitate euro payments for citizens and businesses and increase competition between banks.
What is the “Single Euro Payments Area” (SEPA)?
The introduction of the euro has helped to make a cash payment anywhere in the euro area just as easy as at home. But until recently it was not so easy to pay for goods or services electronically in another euro area country, for example with your bank debit card - a means of payment favoured by many Europeans today. And when you wanted to transfer money from your home bank account to an account in another euro area country, the payment could take much longer, and sometimes the beneficiary did not get the full amount.
The Single Euro Payments Area (or “SEPA” for short) changes all this. It makes all electronic payments in the euro area as easy as cash payments. You can make fast and secure transfers between bank accounts anywhere in the euro area. And if you are shopping abroad, you can also use your bank debit card to make a payment in euro, as you would in your home country.
SEPA is where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro under the same basic conditions, rights and obligations, regardless of their location.
It also means better banking services for all: transparent pricing, valuable guarantees ensuring that your payments are received promptly and in full, and banks assuming responsibility if something goes wrong with your payment.
Only one bank account needed for the whole euro area: SEPA makes things much easier if you are working or studying abroad in another euro area country, especially on a temporary basis. At present you have to go through a range of formalities to open a new bank account in the new country. However, with SEPA you can simply carry on using your existing euro account in your home country. For example, you can have your salary paid into your home account and you can also use your home account to pay any bills you have in the new country. This means very few practical changes, especially if you are used to internet banking.
Direct debits from anywhere in the euro area: if, say, you rent a holiday home on a long-term basis or have regular bills to pay in another euro area country, you are able to pay these bills from your home country by direct debit. And it opens up many other possibilities for regular payments and subscriptions, such as to a foreign newspaper or magazine.
SEPA is much wider than the 1 August migration to SEPA Credit Transfers and SEPA Direct Debits. Taking into account the other Directives and Regulations (Payment Services Directive, E-money Directive, Cross-border payments Regulation) that helped to build it, SEPA brings:
Lower prices for basic payment services in high-cost countries: in some euro area countries, the annual cost of running a bank account can be as much as €250, compared to only €30 in others. More competition between banks will help to drive down these inflated costs. And in countries where prices are already low, they should remain low.
Transparent pricing and no hidden charges: banks have to tell you exactly what they are charging you for, and hidden charges should disappear, such as hanging on to your money before adding it to your account (known as 'float income'), or crediting money to your account but allowing you to use it only after a certain date (known as 'value dating'), which can mean inconvenience and loss of account interest for you.
Better cross-border bank transfers: you could already transfer money within the euro area, but often it took a long time. SEPA guarantees that your euro payments are made promptly and in full. Your payment shall be received within a guaranteed time, and banks are not be allowed to make any deductions of the amount transferred.
And in the near future, the use of your debit card anywhere in the euro area: when you're on holiday or visiting another euro area country, you are able to pay with your debit card as you would at home. This is particularly useful if you do not have a credit card, or for making low-value purchases for which a credit card is often not accepted. Nor will you need to carry around lots of cash, since you are able to use your debit card anywhere at any time, and to make withdrawals from cash machines, just as if you were at home.
