7 steps that will help quickly perform payments as of 2016, with the entry into force of the SEPA requirements

“There are only 300 days remaining until significant payment changes in Lithuania. The payment message technical interfaces with banks and other payment service providers, as used by businesses, will change, as well as information fields indicated in the payment forms, the processing of the crediting of funds; therefore, it is important for businesses and institutions to prepare properly and on time for the changes. This is what the 7-step recommendations are for,” said Marius Jurgilas, Member of the Board of the Bank of Lithuania, Chairman of the SEPA Coordination Committee in Lithuania.

STEP 1. Assess whether you need to take active steps. Economic agents performing credit transfers need to now begin to take active steps to prepare for the SEPA requirements in the two following cases.

First case: if the business (institution) uses an accounting programme with a technical interface related to an internet banking system.

Second case: the business (institution) lays down the requirement for payers (borrowers) where their payment accounts shall be opened, i.e. an institution may transfer an employee's wages to only an account opened in Lithuania. The SEPA regulation prohibits limiting of the payer's (borrower's) right to use a payment account in any Member State of the European Union.

STEP 2. Lay down the necessary accounting system changes. The LITAS-ESIS messages in use will have to be changed and will have to meet the ISO 20022 format requirements. Due to differences in information fields, the processing of crediting of funds will change as well.

STEP 3. Prepare an action plan. It proposes to provide for a future changes budget and plan the time for installing the changes. The experience of other countries shows that for the implementation of the changes to the SEPA requirements, the business (institution) usually needs no less than 6 months.

STEP 4. Contact information technology specialists who manage your accounting programmes. These specialists will find the technical documents, prepared by the SEPA Coordination Committee and available on the SEPA website, useful.

STEP 5. Contact your payment service provider in regards to testing and installation deadlines for the accounting system's changes. It is recommended to agree on the deadlines.

STEP 6. Inform business partners and business (institution) employees, communicating with the public. It is particularly important to inform business partners and (or) customers on how to properly fill out the updated payment forms when transferring money to your business (institution).

STEP 7. Actively monitor the preparations for SEPA at your business. Businesses (institutions) that are unprepared for the implementation of the SEPA requirements risk disrupting the initiation of payments and offsetting processes.

The SEPA Coordination Committee is preparing and in the near future plans to publish recommendation for businesses on how to change their currently used direct debit payment services into services in accordance with the SEPA requirements.

The latest information on the SEPA project is announced at www.sepa.lt and the websites of payment service providers.

Payments