Single Euro Payments Area (SEPA) In Oracle EBS
The euro has meant that you can pay by cash anywhere in the euro area just as easily as at home. But at present it's not so easy if you want to pay for goods or services electronically in another euro area country, for example with your bank debit card, which is how many people want to make payments today. And when you want to transfer money from your home bank account to an account in another euro area country, the payment can take much longer, and sometimes the receiver does not get the full amount. The Single Euro Payments Area (or 'SEPA' for short) will change all this. It will make all electronic payments in the euro area as easy as cash payments are now. It will mean that you can make fast and secure transfers between bank accounts anywhere in the euro area. .
First of all, let's be clear that SEPA won't be like the introduction of the euro, which had a big impact on all our daily lives. In fact, the changeover to SEPA should be as seamless and as smooth as possible. For most people, it will simply mean that your ability to make payments in the euro area will significantly improve once your bank has made the changeover to SEPA.
The introduction of SEPA will give you the following advantages:
Use your debit card anywhere in the euro area: when you're on holiday or visiting another euro area country, you will be 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 will be able to use your debit card anywhere at anytime, and to make withdrawals from cash machines, just as if you were at home.
Better cross-border bank transfers: you can already transfer money within the euro area, but often this takes a long time and costs more. SEPA will guarantee that your euro payments are made promptly and in full. Your payment should be received within a guaranteed time, and banks will not be allowed to make any deductions of the amount transferred. You will also receive simple and clear information on any charges or fees applicable.
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 will be able to pay these bills from your home country by direct debit. And it will open up many other possibilities for regular payments and subscriptions, such as to a foreign newspaper or magazine.
Only one bank account needed for the whole euro area: SEPA will make 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.
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 EUR 250, compared to only EUR 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 will 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.
Oracle EBS functionality for SEPA messages customer credit transfer initiation (pain.001.001.02) is based on the ISO20022 format. ISO20022 format have these benefits;
Grouping : This reduce the number of transmitted files
End to end id . This will ease reconciliation and referencing
Implementing SEPA in EBS:
The SEPA Credit Transfer Initiation Message is available for R11.5.10 via Patch 6741280.Customer using 11.5.10 can get the functionality enable by applying patch.
Oracle White Paper: