Changeover to the payments within SEPA
SEPA (Single Euro Payments Area) is a single area of payments of the European Union, where completely eliminated the differences between domestic and cross-border payments in euros. The project's aim is to improve the efficiency of cross-border payments and turn the national markets of the European Union for euro payments into a single domestic one. The implementation of SEPA allows to simplify euro payments and to make them more convenient, to strengthen European internal market and to contribute to the economic development of the European area.
As of today SEPA consists of 33 countries: 28 member states of the European Union, including the 18 states of Eurozone, the 10 states which are not in the Eurozone (Bulgaria, Croatia, the Czech Republic, Denmark, Hungary, Lithuania, Poland, Romania, Sweden, United Kingdom), the four European Free Trade Association member states (Iceland, Liechtenstein, Norway, Switzerland) and Monaco.
Since the first of February 2014 all payments in euro to be transferred to standards of SEPA, including domestic payments.
Account numbers and IBAN
Bank customers should pay attention that the accounts’ standard will be changed. Instead of the existing account numbers international account number IBAN will be used to standardize the payments in the European Union. The IBAN consists of country code, unique reference number, bank’s code and domestic account number. The existing account numbers will be automatically replaced and you do not need to do anything about it yourself.
See calculator of transfer the existing bank accounts into the international format IBAN.
The current direct debit service will be discontinued, will take place the changeover to the e-invoice service. At the present banks are dealing with the development of it.
SEPA payment conditions
- Payment currency is EUR
- Correct IBAN and BIC code indicated in the payment
- Ordinary payments only
- Payment handling time starting from entering of the payment instruction up to credit entry to the beneficiary is 2 banking days (T+1)
- The originators bank and the beneficiary’s bank are both situated in SEPA state and are members of the SEPA payments scheme
- Payment charges option is “SHA” – shared
- Amount of the payment is not limited
In e-Banking system of Internet banking it is possible to download payments from the file, which can be arranged by any accounting system. Currently, file processing is provided in the following formats:
• C2B payments file in the old format of the bank http://www.tbb.ee/196est.html - TH5.
Only BBAN is used.
• C2B payments file in the format of TeleHansa 6 (Kodumaised maksekorraldused „TH6 IBAN“ formaadis).
IBAN is used.
• C2B payments file in XML format - ISO 20022. The standard is adopted in the EU by Resolution 260/2012 of the European Parliament
IBAN is used. Use only UTF-8 encoding
Tallinna Äripank provides reception of files from customers in various formats: TH5, TH6 IBAN, and also provides the ability to use the file format in accordance with ISO 20022, adopted in the EU by Resolution 260/2012 of the European Parliament.
ISO20022 is a standard that is used for the electronic data exchange between the banks acting in Europe and their customers. Such entities should amend their accounting software in order to be able to send the files in accordance with ISO 20022.
Applying ISO20022 standard in payments files and account statements facilitates automatic processing of the information in the accounting department of the enterprise.
Description of ISO files formats is available on the website of the Estonian Banking Association
E-invoice with automated standing order instead of direct debit
On 1st February 2014, providing direct debit service ends in Estonia. The automated payment of invoices will be continued on the basis of the e-invoice service.
Pursuant to SEPA regulation, local direct debit systems will disappear. Estonian banks and enterprisers decided to adopt the existing e-invoice service that will be enhanced with the options of automated standing orders.
E-invoice is an invoice identical to the one on paper that can be requested from companies that use the option of sending their invoices also as e-invoices.
E-invoices are a more comfortable and modern way of payment compared to direct debit. An e-invoice contains more information because the invoice with the information on the product or service and information on its payment are all in one place.
An e-invoice is a document in XML format which is sent to the internet bank where the payer can view it as PDF and HTML files. The bank will draw up a pre-filled payment order on the basis of the e-invoice that the payer can review and approve for payment. Based on an e-invoice, the payer can also conclude an e-invoice automated standing order with the bank, based on which the bank will pay e-invoices automatically in the future.
Tallinn Business Bank does not currently provide e-invoice services to the clients.
As of November 2013, Tallinn Business Bank decided to allow clients who had concluded direct debit agreements with certain enterprisers to make corresponding payments at the bank’s office without a service fee. The above payments were only free in the online bank for clients of personal banking.