Croatian SEPA Coordination Committee
REPUBLIC OF CROATIA
National SEPA Migration Plan
April 2014
Contents
Introduction–Purpose and structure of the Republic of Croatia National SEPA Migration Plan ............................ 5
Legislative framework ............................................................................................................................................. 7
Payment System Act .............................................................................................................................. 7
Regulation (EC) No 924/2009 .................................................................................................................. 7
Regulation (EU) 260.2012260/2012 ......................................................................................................... 8
Act on the Implementation of EU Regulations Governing Payment Systems ............................................. 10
Regulation (EC) No 1781/2006 .............................................................................................................. 11
Scope of application – European Economic Area and SEPA ................................................................................. 12
SEPA project management.................................................................................................................................... 13
SEPA project in Member States ............................................................................................................. 14
SEPA impact assessment ....................................................................................................................................... 15
Organisational set up and management of the SEPA project in the Republic of Croatia ..................................... 18
Organisational structure of the SEPA project in the Republic of Croatia .................................................... 18
National Payment System Committee (NPSC)......................................................................................... 19
Croatian SEPA Coordination Committee (CSCC) ...................................................................................... 20
Croatian SEPA Forum (CSF) ................................................................................................................... 21
SEPA payment instruments ................................................................................................................................... 23
SEPA Credit Transfer ............................................................................................................................ 23
SEPA Direct Debit................................................................................................................................. 24
SEPA for Cards ..................................................................................................................................... 25
SEPA for Cash ...................................................................................................................................... 26
SEPA and New Payment Methods ......................................................................................................... 27
SEPA for Mobile ............................................................................................................................................................. 27
eSEPA ............................................................................................................................................................................. 27
Additional Optional Services – AOS ....................................................................................................... 29
SEPA – clearing and settlement of payment transactions .................................................................................... 30
Payment instruments in the Republic of Croatia .................................................................................................. 31
Credit transfer ..................................................................................................................................... 31
Direct debits ........................................................................................................................................ 31
Payment cards ..................................................................................................................................... 32
M-payments ........................................................................................................................................ 33
Clearing and settlement of payment transactions in the Republic of Croatia ...................................................... 34
Credit transfers .................................................................................................................................... 34
Other payment instruments ................................................................................................................. 35
Migration prerequisites – SEPA adherence .......................................................................................................... 36
NASO .............................................................................................................................................................................. 36
National SEPA Migration Plan, April 2014
2
Migration plan ....................................................................................................................................................... 38
Operational plan for the migration to SEPA payment instruments ...................................................................... 40
Plan of solutions for the execution of SEPA payment transactions ...................................................................... 41
Initiative of the Croatian banking community ......................................................................................... 41
Plan for an infrastructure solution for payment transaction settlement ............................................................. 43
National kuna payment transactions ..................................................................................................... 43
National and cross-border euro payment transactions ............................................................................ 43
National euro payment transactions ..................................................................................................... 43
Cross-border euro payment transactions ............................................................................................... 43
Settlement of clearing – establishment of the TARGET2 HR component ................................................... 44
Information and communication plan .................................................................................................................. 46
Monitoring the migration progress ....................................................................................................................... 49
Annex 1 Draft of the Migration Plan ................................................................................................................... 50
Plan of the organisational set-up of the SEPA project in the Republic of Croatia ................................................ 50
SEPA Migration Plan ............................................................................................................................. 51
National SEPA Migration Plan, April 2014
3
The Union shall adopt measures with the aim of establishing or ensuring the functioning of
the internal market, in accordance with the relevant provisions of the Treaties.
The internal market shall comprise an area without internal frontiers in which the free
movement of goods, persons, services and capital is ensured in accordance with the
provisions of the Treaties.
Article 26, paragraphs (1) and (2) of the Treaty on the Functioning of the European Union
National SEPA Migration Plan, April 2014
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Introduction–Purpose and structure of the Republic of Croatia National SEPA
Migration Plan
The European Economic Area1 inhabits more than 500 million people and sees over 71.5
billion payment transactions carried out every year. The Republic of Croatia has been part of
the EEA since 1 July 2013.
The idea behind participation in the Union and the European Economic Area is to achieve
economic advantages offered by such associations. One of the basic principles is to realise
the concept of the internal market, a necessary precondition being the creation of a single
payments market in that area.
The SEPA initiative was launched to accomplish this purpose.
SEPA – the Single Euro Payments Area is an initiative that seeks to establish an area wherein
natural and legal persons will be able to initiate and receive payments in euro, within the
European Economic Area, under the same conditions, with the same rights and obligations,
regardless of their location and of whether the payments are national (domestic) 2 or crossborder3.
The aim of the SEPA initiative is to create a single payment system.
The euro as the common (clearing) currency of the European Union was introduced on 1st
January 1999, and euro banknotes and euro coins have been in circulation since 1 st January
2002. An initiative to establish uniform models and procedures for the execution of cashless
euro payments was launched in the same year.
In the first stages, the initiative developed as a self-regulatory process, left to market
initiative.
Member states set up national authorities for the realisation of the SEPA project and, upon
the initiative of the European Commission and the European Central Bank, EU banks and
banking associations established the European Payments Council, which is, among other
things, responsible for the development of payment schemes for specific payment
instruments. The European Payments Council has developed rules and standards for the
execution of pan-European payment instruments: the SEPA Credit Transfer and the SEPA
Direct Debit as well as the framework for the execution of payment card transactions.
1
The European Economic Area comprises states signatories to the Agreement on the European Economic Area. For more
details see Scope of application – the European Economic Area and the SEPA.
2
Article 2, paragraph (1), item (30) of the Payment System Act: "national payment transaction" means a payment
transaction the execution of which involves a payer's payment service provider and a payee's payment service provider, or
only one payment service provider, which operate in the Republic of Croatia in accordance with Article 5 of this Act.
3
Article 2, paragraph (1), item (32) of the Payment System Act: "cross-border payment transaction" means a payment
transaction the execution of which involves two payment service providers of which one payment service provider (of either
the payer or the payee) operates in the Republic of Croatia in accordance with Article 5 of this Act, whereas the other
payment service provider (of either the payer or the payee) operates pursuant to the regulations of another Member State.
National SEPA Migration Plan, April 2014
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As the migration to single payment instruments in the internal market was slower than
expected, the European Commission joined the process as a regulatory authority. Regulation
(EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012
establishing technical and business requirements for credit transfers and direct debits in
euro and amending Regulation (EC) No 924/2009 (OJ L 94, 30.3.2012, hereinafter: Regulation
(EU) 260/2012) established the deadlines for migration to single European payment
instruments – the SEPA Credit Transfers and the SEPA Direct Debits.
With the accession to the European Union, the deadline for migration of euro payment
transactions to SEPA payment instruments also became mandatory for the Republic of
Croatia.
For this purpose, and upon the initiative of the National Payment System Committee, the
national SEPA project was launched in the Republic of Croatia.
The Republic of Croatia National SEPA Migration Plan is a document specifying the existing
national payment instruments and infrastructure, the requirements set forth by European
Union regulations on the SEPA Schemes, infrastructure and the execution of payment
transactions within the SEPA, as well as the organisation of the SEPA project in the Republic
of Croatia, the operational plan and the progress of migration within defined deadlines. The
Migration Plan will be supplemented and updated on a regular basis.
The Migration Plan is the outcome of an agreement between all stakeholders in the SEPA
project in the Republic of Croatia; it is developed by the Croatian SEPA Coordination
Committee and adopted by the National Payment System Committee.
The main purpose of the Migration Plan is to prepare a framework for the acceptance of the
SEPA project by payment service providers, payment system operators and payment service
users in the Republic of Croatia.
The other purpose of this document is to inform all SEPA project stakeholders, including
payment service providers and users, public authorities, the Croatian National Bank,
stakeholder groups, trade associations and payment system operators, about the goals
defined by the project, the realisation of which will bring benefits to all stakeholders in the
form of fast, cheaper, reliable and safe euro payment services, provided across the European
Union under the same conditions by means of highly automated payment instruments.
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Legislative framework
The execution of SEPA payment transactions in the Republic of Croatia is governed by the
following payment system regulations:
Payment System Act
The Payment System Act (Official Gazette 133/2009 and 136/2012) transposes into the
legislation of the Republic of Croatia the provisions of Directive 2007/64/EC of the European
Parliament and of the Council of 13 November 2007 on payment services in the internal
market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and
repealing Directive 97/5/EC (OJ L 319, 5.12.2007; hereinafter: the Directive on Payment
Services).
The Directive on Payment Services, which provides a legal basis for the creation of an EU
single payments market, aims at:
establishing state-of-the-art and comprehensive rules applicable to all payment
services in the European Economic Area;
enabling the execution of cross-border payments to be as simple, efficient and safe
as the execution of national payments;
encouraging competition in the market by introducing new participants to increase
efficiency and reduce costs; and
creating a necessary legal basis for the realisation of the SEPA.
This Directive, for the first time in the European Union, regulates payment services and
provides for uniform rules for the whole European Economic Area. Prior to coming into force
of the Directive, payment services were regulated by the national legislation of Member
States, and the legal framework for payment services was divided into 27 national legal
systems.
The Payment System Act came into effect on 1 January 2011.
Regulation (EC) No 924/20094
Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16
September 2009 on cross-border payments in the Community and repealing Regulation (EC)
No 2560/2001 (OJ L 266, 9.10.2009.; hereinafter: Regulation (EC) No 924/2009) as amended
by Regulation (EC) No 260/2012, came into force in the Republic of Croatia on the date of its
accession to the European Union, 1 July 2013.
4
Regulation (EC) No 924/2009 and Regulation (EU) No 260/2012, in the unofficial Croatian translation, are available at the
Croatian National Bank website: http://www.hnb.hr/platni-promet/hplatni-promet.htm under EU REGULATIONS.
National SEPA Migration Plan, April 2014
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Under Regulation (EC) No 924/2009, charges of payment service providers in the European
Economic Area for payment service users' cross-border payments in euro must be on the
same footing as charges for national payments of the same value in the same currency.5
The Regulation applies to all electronically initiated payments (credit transfers, direct debits,
payment card transactions including ATM cash withdrawals and money remittances). 6 The
Regulation also obliges payment service providers to inform their payment service users on
their IBAN and the payment service provider's BIC.
This Regulation replaced Regulation (EC) No 2560/2001, designed to put the prices for
national and cross-border payment transactions in euro on the same footing in order to
stimulate the market (payment service providers – banks) to develop payment schemes
enabling the execution of cross-border payment transactions at the prices comparable to
those of national payment transactions.
Since pan-European payment schemes were developed, but the migration failed to proceed
at the expected pace, Regulation (EU) No 260/2012 was adopted.
Regulation (EU) 260/20127
Regulation (EU) No 260/2012 also came into effect in the Republic of Croatia on the date of
its accession to the European Union, 1 July 2013.
The Regulation sets forth the rules governing the execution of euro credit transfers within
the European Economic Area and the deadlines for the start of the execution of payment
transactions in accordance with the defined rules. Pursuant to the conditions set forth in the
Regulation, credit transfer and direct debit transactions that the Regulation applies to, in the
European Economic Area, should be executed within SEPA payment schemes for the stated
payment instruments.
The deadline for the adjustment prescribed for Member States whose currency is not the
euro, including the Republic of Croatia, is 31 October 2016.
The Regulation was amended by Regulation (EU) No 248/2014 of the European Parliament
and of the Council of 28 February 2014 that defines the deadline for the adjustment for
Member States whose currency is the euro as 1 August 2014.
5
Pursuant to Article 3 of Regulation (EC) No 924/2009, as amended by Article 17 item (2) of Regulation (EU) No 260, this
rule applies irrespective of the payment transaction amount.
6
Document: Regulation (EC) No 924/2009–Frequently Asked Questions, officially released on the website of the European
Commission.
7
Regulation (EC) No 924/2009 and Regulation (EU) No 260/2012 in the unofficial Croatian translation are available at the
Croatian National Bank website: http://www.hnb.hr/platni-promet/hplatni-promet.htm under EU REGULATIONS.
National SEPA Migration Plan, April 2014
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The deadlines for the migration to the SEPA for the Republic of Croatia pursuant to
Regulation (EU) No 260/2012 requirements for payment service providers:
As of 1 July 2013
Article 8 paragraph
(1) and Article 6
paragraph (3)
(in relation with
Article 7 of
Regulation (EC) No
924/2009)
A PSP must not apply a multilateral interchange fee
or other agreed remuneration with an equivalent
object or effect to cross-border direct debit
transactions in euro.
As of 1 July 2013
Article 8 paragraph
(1) and Article 6
paragraph (3)
(in relation with
Article 7 of
Regulation (EC) No
924/2009)
Article 7, paragraph
(1)
A PSP which did not apply the multilateral
interchange fee or other agreed remuneration with
an equivalent object or effect prior to 1 November
2009 must not apply it to national direct debit
transactions in euro.
As of 1 February 2013
As of 1 February 2013
Article 8
paragraphs (2) and
(3) and Article 6
paragraph (2)
As of 31 October 2016
Article 3
Article 16
paragraph (2)
New mandates for direct debits in euro must be
given in accordance with SEPA rules.
Valid mandates to collect recurring direct debits in a
legacy scheme prior to 1 February 2014 continue to
remain valid after that date.
A PSP may charge a multilateral interchange fee for
"R" transactions only if the conditions of Article 8
paragraph (2) are met.
Reachability for SEPA payment instruments – a PSP
that offers euro credit transfer/direct debit services
must ensure the reachability for SEPA Credit
transfers/SEPA direct debits.
As of 31 October 2016
Article 4, paragraph Interoperability – The operator of a payment
system operating in euro must ensure that the
(2)
payment system is technically interoperable with
Article 16,
other payment systems operating in euro.
paragraph (8)
As of 31 October 2016
Article 5, paragraph Payment transactions in euro must meet the
following standards:
(1) and Annex
payment account format is IBAN,
message format is: ISO 20022 XML.
Article 16,
paragraph (8)
PSUs' payment transaction files (packages) must be
in format ISO 20022 XML.
On the request of a PSU, a PSP must be able to
National SEPA Migration Plan, April 2014
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submit information, statements, etc. in ISO 20022
XML format.
As of 31 October 2016
Article 5, paragraph SEPA Credit Transfer in euro
A PSP providing a credit transfer service must
(2) and Annex
execute payment transactions in euro as SEPA
Credit Transfer.
Article 16,
paragraph (8)
As of 31 October 2016
Article 5,
paragraphs (3) and
(6) and Annex
SEPA Direct Debit in euro
A PSP providing a direct debit service must execute
payment transactions in euro as SEPA Direct Debit.
Article 16,
paragraph (8)
As of 31 October 2016
Article 5,
paragraphs (4), (5)
and (7)
A PSP must be able to recognise the payee's/payer's
bank on the basis of IBAN (data on BIC must not be
required).
Article 16,
paragraph (8)
As of 1 February 2017
Article 8 paragraph
(1) and Article 6
paragraph (3)
(in relation with
Article 7 of
Regulation (EC) No
924/2009)
A PSP must not apply a multilateral interchange fee
or other agreed remuneration with an equivalent
object or effect to national euro direct debit
transactions.
Until the stated date, a PSP may do so provided that
the fee was charged prior to 1 November 2009.
Note regarding the deadline of 31 October 2016: the deadline is set under the assumption that the Republic of
Croatia will not introduce the euro as its national currency before 31 October 2015.
Act on the Implementation of EU Regulations Governing Payment Systems
Regulation (EC) No 924/2009 and Regulation (EU) No 260/2012 govern the requirements to
be fulfilled by each Member State subject to these regulations in order for their provisions to
be applied. For this purpose, the Act on the Implementation of EU Regulations Governing
Payment Systems (Official Gazette 54/2013) was adopted, governing the authority
competent for exercising supervision and dealing with complaints, regulating out-of-court
complaints and redress procedures and defining infringements of Regulation (EC) No
924/2009 and Regulation (EU) No 260/2012. The Act came into force on the date of
accession of the Republic of Croatia to the European Union, 1 July 2013.
National SEPA Migration Plan, April 2014
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Regulation (EC) No 1781/2006
Regulation (EC) No 1781/2006 of the European Parliament and of the Council of 16
September 2006 on information on the payer accompanying transfers of funds imposes the
obligation on payment service providers to have transfers of funds accompanied by accurate
and meaningful information on the payer so that it is always possible to trace the transfer of
funds back to the payer, regarding activities related to the prevention, investigation and
detection of money laundering and terrorist financing.
Prior to the accession of the Republic of Croatia to the European Union, this Regulation was
implemented in the Ordinance on the content and type of data on the payer accompanying
electronic funds transfer, the obligations of payment services provider and on exemptions
from the obligation to collect data in funds transfer (Official Gazette 1/2009).
Since the accession of the Republic of Croatia to the EU, the Regulation concerned has been
directly applicable (the Ordinance concerned expired).
A regulation repealing the Regulation concerned is currently undergoing an adoption
procedure. The European Commission has prepared a proposal for a new regulation entitled
Proposal for a Regulation of the European Parliament and of the Council on information
accompanying transfers of funds.
Legislative framework
Payment System Act
Directive on payment services
governs payment services, payment service providers, obligations of payment service providers to inform
payment service as well as other rights and obligations in relation to the provision and use of payment services,
transaction accounts and the execution of payment transactions among credit institutions, the establishment,
operation and supervision of payment institutions and the establishment, operation and supervision of payment
systems.
Regulation (EC) No 924/2009
establishes the principle of equality of charges for the execution of cross-border and corresponding national
payment transactions in euro.
A bank is obliged to communicate to its client the client's IBAN and the bank's BIC.
Regulation (EU) No 260/2012
sets forth the rules on euro credit transfers and direct debits within the EEA
payment message standards: IBAN, BIC and ISO 20022 XML
equal rules for national and cross-border payments
reachability of accounts for payments in the EEA
interoperability of payment systems operating in euro
validity of prior consent to execute direct debits
rules on charges for the execution of direct debits
sufficiency of one reachable account for payments in the EEA
Act on the Implementation of EU Regulations Governing Payment Systems
for the purpose of implementation of Regulation (EC) No 924/2009 and Regulation (EU) No 260/2012
governs the authority competent for exercising supervision and dealing with complaints
 regulates out-of-court complaints and redress procedures
 defines infringements
Regulation (EC) No 1781/2006
 all transfers of funds are accompanied by information on the payer
 purpose: prevention, investigation and detection of money laundering and terrorist financing
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Scope of application – European Economic Area and SEPA
Directive on payment services, Regulation (EC) No 924/2009 and Regulation (EU) No
260/2012 are directly applicable in Signatory States of the Agreement on the European
Economic Area. The European Economic Area comprises EU Member States, Norway, Iceland
and Liechtenstein.
The SEPA is wider than the European Economic Area and, in addition to the mentioned
states, includes Switzerland, Monaco and San Marino8 and some countries (Gibraltar,
Martinique, Åland Islands, Mayotte, Saint Pierre and Miquelon, French Guiana, Guadeloupe,
Reunion, Saint Barthélemy and the French part of Saint Martin).
States and countries within the SEPA joined SEPA schemes and undertook to execute
payment transactions in accordance with SEPA rules and procedures. States and countries
outside the European Economic Area, however, are neither obliged to adopt nor to apply EU
regulations (e.g. Directive on payment services and regulations governing payment systems).
SEPA States9
EEA/EU/EMU Member States (18 states)
Austria, Belgium, Cyprus, Estonia, Finland, France, Greece, Ireland, Italy, Latvia,
Luxembourg, Malta, Netherlands, Germany, Portugal, Slovenia, Slovakia, Spain
EEA/EU Member States whose currency is not the euro (10 states)
Bulgaria, Czech Republic, Denmark, Croatia, Lithuania, Hungary, Poland, Romania, Sweden,
United Kingdom of Great Britain and Northern Ireland
EEA/non-EU Member States
Iceland, Liechtenstein, Norway
Non-EEA Member States
Monaco, Switzerland, San Marino
8
As of 1 February 2014.
Source: EPC List of SEPA Scheme Countries, EPC409-09, Version 2.0, 20 January 2014.
9
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SEPA project management
The European Payments Council is the governing body in the development of the SEPA. The
European Payments Council is the coordination body authorised by the European banking
industry for decision-making in relation to payment systems, whose main goal is to promote
the SEPA. Members of the European Payments Council represent banks, banking
associations and payment institutions, that is, organisations of all sizes and from all sectors
of the EU banking industry.
The European Payments Council is, inter alia, competent for the development and
management of payment schemes and frameworks for SEPA instruments as defined in the
SEPA Credit Transfer Rulebook (SCT Rulebook), SEPA Direct Debit Rulebook (SDD Rulebook)
and SEPA Cards Framework.
The following working groups were established within the European Payments Council for
the purpose of realising SEPA project goals: the SEPA Payment Schemes Working Group
(Credit Transfer and Direct Debit), Cards Working Group, Cash Working Group, E-Commerce
Payments Working Group, M-Payments Working Group, Standards Support Group, Legal
Support Group and Information Security Support Group.
A representative of the Republic of Croatia, nominated by the Croatian Bank Association,
also participates in the work of the European Payments Council.
At the European Union level, the most important bodies for the SEPA project development
are the European Commission and the European Central Bank, which, in order to include
the demand side into the SEPA project management in addition to the supply side (the only
side represented in the European Payments Council), set up the SEPA Council, in December
2013 replaced by the Euro Retail Payments Board – ERPB.
The Euro Retail Payments Board has the following goals:
- to identify and study behavioural technical and legal obstacles in, but not limited to, credit
transfers, direct debits, card payments, internet payments, mobile payments and paymentsrelated horizontal issues (e.g. issues related to standards, fraud and security);
- identify and pursue ways to address these obstacles;
- identify and pursue ways to foster innovation, competition and integration in retail
payments in euro in the EU.
The European Commission plans to define the role and significance of the SEPA management
in an amended Directive on payment services.
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SEPA project in Member States
The SEPA project was launched at the national level of Member States and the national
organisational set up was established. Plans for the realisation of the SEPA project take into
account specific characteristics of each Member State.
National authorities competent for the coordination of the establishment of the SEPA
project in Member Sates meet at the EU Forum of National SEPA Coordination Committees
organised by the European Commission to learn about activities carried out in other
Member States, discuss issues of common interest with EU bodies and exchange information
and experience in the SEPA migration process.
A representative of the Republic of Croatia from the Croatian SEPA Coordination Committee
will take part in the work of the EU Forum of National SEPA Coordination Committees
organised by the European Commission.
European level
National level
Banking
associations,
banks, other
PSPs
European Payments Council
Central
banks
European
Central Bank
Euro Retail
Payments
Board
(preceded
by SEPA
Council)
European
Commission
National SEPA
Coordination
Committees
Ministry of
Finance
EU Forum
Other
participants
Demand – payment service users
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SEPA impact assessment
The SEPA will have a significant impact on all participants as it will create new opportunities
and challenges, and increased competitiveness will make the euro payments area a single
market for payment service providers to offer their services.
A greater choice of payment service providers will enable payment service users to use a
wide range of competitive payment methods.
The SEPA will also ensure a considerable number of advantages, listed below.
SEPA impact on payment service users
Payment service users will be able to have a single payment account. They will be
able to make euro credit transfers and direct debits from this account across the
European Economic Area as simply as in the national payment system.
The use of payment cards will be more efficient because users will be able to use the
same payment card for all euro payments.
Users will be able to be offered innovative services irrespective of national
boundaries.
The banking industry's long-term goal as regards SEPA payment instrument is for them to be
used solely in an electronic form. Such payments include e-invoices, mobile and internet
payments, airline e-tickets, etc. Payment service users will thus need less time for payment
execution.
The overall impact of the SEPA migration on consumers will be small. Consumers in Europe
will experience some changes when SEPA instruments replace domestic payment
instruments. Most SEPA-induced changes affecting consumers in the Republic of Croatia
have already been completed (e.g. the introduction of IBAN and new payment order).
SEPA impact on merchants
Payment cards have become extremely popular with consumers and are increasingly
replacing cheques and cash. The use of payment cards is expected to increase further. In this
context, the SEPA offers the following benefits:
Acquirers will be able to process all SEPA compliant card payments, including crossborder payments. Within the SEPA environment, merchants will be able to choose
any acquirer in the European Economic Area to process card payments, which will
increase competitiveness and bring down costs.
Point-of-sale terminals in the SEPA will become increasingly standardised. This will
allow for a wider choice of providers and merchants will be able to accept a wide
range of cards from a single terminal. The increased competition among card
schemes should also drive down the charges for merchants.
The SEPA migration will influence the costs of IT operational support (new
applications).
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SEPA impact on business entities (companies)
The SEPA will simplify the handling of payments for companies.
Companies will be able to perform all euro-denominated payments from a single
account, using SEPA payment instruments. The handling of payments will be easier,
as all payments will take the same format. By consolidating their payments and
liquidity management in one location, companies doing business with companies
from the European Economic Area will be able to reduce costs and save time.
Value added services, such as such as e-invoicing or e-reconciliation, will help
companies to further optimise the handling of payments. Today these services are
often offered only nationally, as different formats and legal rules make cross-border
use difficult. Standardised SEPA payment schemes will make it easier to overcome
these obstacles and companies will benefit from the straight through processing
(STP) throughout the entire process.
The migration to the SEPA will influence the costs of IT systems and applications, as
well as the organisation of operations and human resources.
SEPA impact on banks
By enabling the use of new payment instruments and of the infrastructure spanning the
entire European Union, the SEPA will bring the following benefits to banks:
Banks will be able to expand their business and compete in the whole European
Union therefore offering their services more easily to customers throughout the EU.
Banks will also be able to expand their business by offering their clients value added
services with SEPA products.
The SEPA will lead to further EU integration and increase market efficiency. By
harmonising payment execution conditions, the SEPA will bring about uniform rules,
an equal and open approach, reachability, transparency and interoperability, thus
stimulating competition.
Regulation (EC) No 2560/2001, superseded by Regulation (EC) No 924/2009, which
established the principle of equality of charges for national and corresponding crossborder payments within the European Union, created an inequality between bank
charges and the costs of cross-border payments. Such inequality can only be
eliminated by reorganising the execution of cross-border payments – processing,
clearing and settlement – so that it is as efficient and favourably priced as the
execution of national payment transactions, which is the primary goal of the SEPA.
The banking industry will be faced with initial investment costs and the costs of
maintaining the existing schemes and SEPA schemes until the final migration.
In the long term, when national schemes are completely replaced by SEPA schemes,
bank costs should be driven down by the economies of scales, scope of operations
and innovations. Revenues will be affected by an increase in cross-border
competition and new market participants.
The period of migration from old to new schemes should be as short as possible,
since studies have shown that costs increase with the length of the migration period.
National SEPA Migration Plan, April 2014
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As for the qualitative impact of the SEPA migration, it will be reflected on IT systems
and applications' costs, client communication costs and, possibly, on the organisation
of operations and human resources.
SEPA impact on payment system operators
The separation of the payment scheme development from payment systems should increase
competition among payment system operators.
Payment system operators, no longer limited by national boundaries, will be able to
provide their services in the whole territory of the European Union.
The common set of technical standards will enable interoperability or interlinking
between different payment systems.
Card processors will be able to support various card schemes and acquirers in the
whole territory of the European Union.
PAYMENT
SERVICE USERS
BANKS (payment
service providers)
(citizens –
consumers,
merchants,
business entities,
"the government")
PAYMENT
SYSTEMS
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Organisational set up and management of the SEPA project in the Republic of
Croatia
The SEPA project was launched and the national SEPA organisation in the Republic of Croatia
established upon the initiative of the National Payment System Committee to enable timely
preparation of the application of Regulation (EU) 260/2012.
Organisational structure of the SEPA project in the Republic of Croatia
National Payment System Committee
EU
ECB
EPC
nominates
information
materials
conclusions
decisions
Croatian SEPA Coordination Committee
(CSSC)
Croatian SEPA Forum (CSF)
questions and
proposals
establishment
monitoring
information
materials
information
materials
nominates
communication
training
feedback
Stakeholders
Working groups
Credit
Transfer
Direct
Debit
Legal
Issues
Card
payments
e-payments and
m-payments
SECA - Single Euro
Cash Area
The organisational structure of the SEPA project in the Republic of Croatia was agreed on at
the 21st meeting of the National Payment System Committee (hereinafter: the NPSC), held
on 24 April 2013.
National SEPA Migration Plan, April 2014
18
National Payment System Committee (NPSC)
The main SEPA project management body in the Republic of Croatia is the NPSC.
The NPSC is an inter-institutional body, established in 2003, comprising the Croatian
National Bank, Ministry of Finance, Croatian Chamber of Economy (which includes the
Banking and Finance Department and other financial institutions) and the Croatian Banking
Association.
The main tasks of the NPSC relate to all aspects of functioning of the domestic payment
system, as follows:
defining and proposing the implementation of joint measures within the payment
system, aimed at ensuring uniform implementation of regulations from various
fields;
promoting the acceptance and implementation of new solutions in the payment
system in order to increase the degree of its security and efficiency;
providing initiative to establish co-operation among institutions responsible for
adopting regulations closely related to domestic payment operations, and, where
necessary, initiative to change current laws and subordinate legislation;
monitoring the development and proposing the implementation of new services in
the payment system with a view to improving the relationship between banks and
their clients;
identifying difficulties in the functioning of the domestic payment system and
proposing solutions thereto;
promoting further development of the domestic payment system based on market
principles and confronting the monopolistic interests within the payment system of
any financial institution in the country; and
proposing guidelines for the development of the domestic payment system in
accordance with EU Directives and accepted international standards.
The NPSC, in accordance with its powers, adopts decisions, conclusions and
recommendations for payment system procedures.
At a NPSC meeting held in January 2013, it was agreed that the SEPA project in the Republic
of Croatia be managed by the NPSC.
At a NPSC meeting held in April 2013, the final proposal was adopted for the organisational
set up and management of the SEPA project in the Republic of Croatia. It was agreed that
the Committee would establish two working bodies, the Croatian SEPA Coordination
Committee – CSCC, and the Croatian SEPA Forum – CSF.
These working bodies will be independent in the performance of their tasks and they will
report on their work to the NPSC.
It was also agreed that the CSCC and CSF, in order to achieve their tasks, would be able to
set up working groups aimed at designing practical solutions for the assigned tasks.
National SEPA Migration Plan, April 2014
19
Following the adoption of Annex to the Agreement Establishing the National Payment
System Committee (25 April 2013), amendments to the Rules of procedure of the National
Payment System Committee, establishing formal prerequisites for the realisation of specified
goals and tasks, were adopted at a Committee held in May 2013. Also at that meeting, the
Committee adopted the Decision on the establishment of the Croatian SEPA Coordination
Committee (CSCC) and the Decision on the establishment of the Croatian SEPA Forum (CSF).
The tasks of the NPSC related to the SEPA project in the Republic of Croatia were defined as
follows:
supervising and steering the realisation of the SEPA project in the Republic of Croatia;
establishing NPSC working bodies, the Croatian SEPA Coordination Committee (CSCC)
and the Decision on the establishment of the Croatian SEPA Forum (CSF);
assigning specific tasks to NPSC members or working bodies' participants;
discussing and deciding on the open issues and proposals of SEPA working bodies
related to the adherence to payment schemes and the development and
establishment of payment infrastructure;
monitoring, steering and harmonising the activities of SEPA working bodies, and the
activities of NPSC members related to the realisation of the SEPA project;
adopting the National SEPA Migration Plan and its amendments and monitoring its
realisation;
cooperating with institutions, organisations and associations that are not members of
the NPSC but need to be involved in the realisation or informed of the SEPA project in
the Republic of Croatia;
monitoring the process of banks' adherence to the SEPA;
discussing all other issues significant for the realisation of the SEPA project in the
Republic of Croatia.
Croatian SEPA Coordination Committee (CSCC)
Croatian SEPA Coordination Committee (hereinafter: the CSCC) is a NPSC working body
established on 21 May 2013 pursuant to the Decision on the establishment of the Croatian
SEPA Coordination Committee.
The members of the CSCC are the Croatian Banking Association (whose representative
presides over the Committee), the Croatian National Bank, the Croatian Chamber of
Economy, the Ministry of Finance and the Financial Agency. The CSCC can include the
Croatian Employers' Association in its activities.
The tasks of the CSCC are as follows:
designing the National SEPA Migration Plan, monitoring its implementation and
taking appropriate steps towards its realisation; the competent authority for the
design of the National SEPA Migration Plan is the Croatian National Bank;
developing and implementing the national kuna credit transfer and direct debit SEPA
scheme;
National SEPA Migration Plan, April 2014
20
developing and implementing solutions for the execution of euro credit transfers and
direct debits in compliance with SEPA rules and Regulation (EU) No 260/2012;
adopting proposals for setting up or adjusting the payment infrastructure in the
Republic of Croatia in compliance with SEPA rules;
defining open issues related to the realisation of the SEPA project in the Republic of
Croatia, analysing these issues and proposing appropriate solutions, coordinating
activities among participants involved in the realisation of the SEPA project in the
Republic of Croatia;
cooperating with the Croatian SEPA Forum regarding the coordination of activities
and the realisation of the information plan for the stakeholders and general public
regarding the SEPA project in the Republic of Croatia;
participating in the work of the EU Forum of National SEPA Coordination Committees
organised by the European Commission;
monitoring the development of the SEPA and cooperating with other competent
bodies in the EU.
The CSCC reports on its work to the NPSC and:
submits for adoption to the NPSC proposals for solutions of the issues within the
scope of its tasks;
as appropriate, submits for analysis to the NPSC and requires its opinion on the
proposed solutions regarding specific open issues;
submits the minutes of NPSC meetings to the secretary of the NPSC;
In order to achieve its tasks, the CSCC can set up working groups for the purpose of
designing proposals for the practical solutions of delegated tasks. The CSCC may designate a
leader of a working group, its participants and the number of members representing each
participant, as well as working group tasks. The participants of a working group may also be
institutions, organisations or associations than do not participate in the work of the CSCC.
Since its establishment, the CSCC has participated in the work of the European Payments
Council and its working groups (addressing operational issues concerning the Republic of
Croatia's participation in the SEPA, e.g. defining the national payee identifier, the Croatian
SEPA logo, etc.) and formed operative groups for the SEPA Credit Transfer and SEPA Direct
Debit as well as an operative group for legal issues.
CSCC activities are aimed at defining SEPA schemes for the execution of SEPA payment
transactions and ensuring the method of execution of SEPA cross-border payments.
Croatian SEPA Forum (CSF)
The Croatian SEPA Forum (hereinafter: the CSF) is a NPSC working body established on 21
May 2013 pursuant to the Decision on the establishment of the Croatian SEPA Forum.
The members of the CSF are the Croatian Chamber of Economy (whose representative
presides over the Forum), the Croatian Banking Association, the Croatian National Bank, the
Ministry of Finance and the Financial Agency. The CSF can include the Croatian Employers'
National SEPA Migration Plan, April 2014
21
Association, the Croatian Chamber of Trades and Crafts and consumer protection
associations in its activities.
The tasks of the CSF are as follows:
promoting SEPA payment services for the general public and service users;
organising meetings for the exchange of information between the supply and
demand sides regarding the SEPA project in the Republic of Croatia;
establishing the needs of participants on the demand side (business entities,
craftsmen, consumers) and analysing their proposals;
focusing on potentially large users;
monitoring the readiness and coordinating the activities related to the realisation of
the SEPA project in the Republic of Croatia on the demand side;
coordinating the activities with the Croatian SEPA Coordination Committee.
The CSF reports on its work to the NPSC and:
submits for adoption to the NPSC proposals for the solutions of issues within the
scope of its tasks;
as appropriate, submits for analysis to the NPSC and requires its opinion on the
proposed solutions regarding specific open issues;
submits the minutes of its meetings to the NPSC secretary;
In order to achieve its tasks, the CSF may set up working groups aimed at designing
proposals for the practical solutions of delegated tasks. The CSF may designate a leader of a
working group, its participants and the number of members representing each participant,
as well as working group tasks. The participants of a working group may also be institutions,
organisations or associations than do not participate in the work of the CSF.
The website domain www.sepa.hr was purchased upon the establishment of the CSF, with
the Editorial Board set up to design the website and define communication strategy. CSF
activities have focused on payment service users (small and medium sized enterprises, large
companies, the public sector, IT companies, craftsmen, consumers), the main activities being
the promotion of SEPA payment services, informing the general public and training users.
National SEPA Migration Plan, April 2014
22
SEPA payment instruments
SEPA Credit Transfer
"Credit transfer" means a national or cross-border payment service for crediting a payee’s
payment account with a payment transaction or a series of payment transactions from a
payer’s payment account by the PSP which holds the payer’s payment account, based on an
instruction given by the payer.10
The SEPA Credit Transfer Scheme of the European Payments Council has been in effect as of
28 January 2008.
The Scheme contains a set of interbank rules, procedures and standards for the execution of
euro credit transfers in the SEPA by banks participating in the Scheme.
The SEPA Credit Transfer Rulebook defines the business requirements and interbank rules
for the operation of the Scheme as well as obligations of participants adhering to the
Scheme. The SEPA Credit Transfer Rulebook is based on the rules for the execution of euro
credit transfers laid down by Regulation (EU) No 260/2012. The SEPA Credit Transfer Scheme
is presented in detail in the supplementary documents.11
The basic SEPA Credit Transfer standards are as follows:
the payer's and payee's account is defined by the IBAN;
the payer's and payee's payment service providers (banks) are defined by the BIC;
payment transactions are executed in accordance with the ISO 20022 XML message
format.
Regulation (EU) No 260/2012 establishes deadlines for the execution of credit transfer
transactions in euro in accordance with the rules set forth therein: the deadline for Member
States whose currency is the euro is 1 February 2014 (Article 6 paragraph (1)), and for other
Member States of the European Economic Area, including the Republic of Croatia, the
deadline is 31 October 2016 (Article 16, paragraph (8)). Regulation (EU) No 248/2014
amends Regulation (EU) No 260/2012 setting a new deadline for Member States whose
currency is the euro – 1 August 2014.
The SEPA Credit Transfer Scheme has been adhered to by a total of 4,589 banks12, with the
share of SEPA credit transfers in total credit transfers standing at 83.1% in January 2014. 13
10
Article 2, item (1) of Regulation (EU) No 260/2012.
Technical documents for the SEPA Credit Transfer are available at:
http://www.europeanpaymentscouncil.eu/content.cfm?page=sepa_credit_transfer under EPC technical documents.
It should be noted that the EPC periodically updates and releases new versions of technical documents.
12
Source: EPC, March 2014.
13
Source: European Central Bank.
11
National SEPA Migration Plan, April 2014
23
SEPA Direct Debit
"Direct debit" means a national or cross-border payment service for debiting a payer’s
payment account, where a payment transaction is initiated by the payee on the basis of the
payer’s consent.14
The SEPA Direct Debit Scheme of the European Payments Council has been in effect as of 2
November 2009. The Scheme contains a set of interbank rules, procedures and standards for
the execution of direct debits in euro in the SEPA by banks participating in the Scheme. The
SEPA Direct Debit Scheme comprises two schemes: the Core SEPA Direct Debit Scheme and
the Business to Business SEPA Direct Debit Scheme - B2B.
Each of the schemes is defined by the Rulebook and supplementary documents. The SEPA
Core Direct Debit Rulebook defines the business requirements and interbank rules for the
operation of the Core SEPA Direct Debit Scheme, as well as obligations of participants
adhering to the Scheme. The SEPA B2B Direct Debit Rulebook defines the same elements
for the Business to Business SEPA Direct Debit Scheme. The SEPA Direct Debit Rulebook is
based on the rules for the execution of direct debits laid down by Regulation (EU) No
260/2012. The SEPA Direct Debit Schemes are presented in detail in supplementary
documents.15
The basic SEPA direct debit standards are as follows:
the payer's and payee's account is defined by the IBAN;
the payer's and payee's payment service providers (banks) are defined by the BIC;
payment transactions are executed in accordance with the ISO 20022 XML message
format.
Regulation (EU) 260/2012, as amended by Regulation (EU) No 248/2014, establishes
deadlines for the execution of direct debit transactions in euro in accordance with the rules
set forth therein (in accordance with the Core SEPA Direct Debit Scheme), which are the
same as those applied to credit transfers: the deadline for Member States whose currency is
the euro is 1 August 2014, and for other Member States of the European Economic Area,
including the Republic of Croatia, the deadline is 31 October 2016 ( Article 16, paragraph
(8)). Pursuant to the provisions of the Regulation, payment service providers (banks) are
required to execute direct debit transactions in euro in compliance with the Core SEPA
Direct Debit Scheme. The execution of direct debits in compliance with the Business to
Business SEPA Direct Debit Scheme is not mandatory (Article 3 paragraph (3) of Regulation
(EU) No 260/2012). This Scheme is a supplementary scheme that payment service providers
may offer to their clients –business entities.
14
Article 2, item (2) of Regulation (EU) No 260/2012. Uredbe (EU) br. 260/2012.
Technical documents for the SEPA Direct Debit are available at:
http://www.europeanpaymentscouncil.eu/content.cfm?page=sepa_credit_transfer under EPC technical documents.
It should be noted that the EPC periodically updates and releases new versions of technical documents.
15
National SEPA Migration Plan, April 2014
24
The Core SEPA Direct Debit Scheme has been adhered to by a total of 3,932 16 banks, and the
Business to Business SEPA Direct Debit Scheme has been adhered to by 3;46317 banks. The
share of SEPA direct debits in total executed direct debits in the EU in January 2014 was
60.2%18.
SEPA for Cards
A "payment card" means a device enabling its holder to make payments for goods and
services either at an accepting device or remotely, and/or to access cash and/or other
services at an ATM or another self-service device.19
The SEPA for Cards sets the conditions to offer cardholders to initiate payment transactions
in euro across the SEPA with the same ease and convenience as in their home country and to
enable merchants to freely choose among card brands and acquirers.
The European Payments Council releases documents for the SEPA for Cards, including the
SEPA Cards Framework, standards compiled in the SEPA Cards Standardisation Volume –
Book of Requirements, as well as rules and regulations aimed at increasing the level of
safety of card payments and preventing fraud.20
The European Payments Council's SEPA Cards Framework outlines the principles and rules to
be implemented by the card industry and complied with by issuers, acquirers, card schemes
and operators. The SEPA Cards Framework prescribes the EMV standard21 as a condition for
the execution of payment card transactions in the SEPA, and the prevention of fraud by
means of the chip and personal identification number (PIN) methodology.
The European Payments Council has undertaken to complete the migration of all SEPA cards
and accepting devices to the international EMV standard, based on the chip and personal
identification number (PIN) methodology, by the end of 2010.
An important indicator on the migration progress is the number of cards, POS terminals and
automated teller machines that use the EMV and PIN technology for the authorisation of
card payments. The migration to the EMV standard in the EU is essentially complete. An
estimated 87.2% of payment cards, 94.2% of POS terminals and 96.7% of automated teller
machines in the SEPA were in compliance with the EMV standard at the end of 2011. 22 The
16
Source: EPC, March 2014.
Source: EPC, March 2014.
18
Source: European Central Bank
19
Article 2, paragraph (1), item (35) of the Payment System Act.
20
Technical documents for the SEPA for Cards are available at:
http://www.europeanpaymentscouncil.eu/content.cfm?page=sepa_credit_transfer under EPC technical documents.
It should be noted that the EPC periodically updates and releases new versions of technical documents.
21
EMV – Europay, MasterCard and Visa – an acronym for a set of specifications developed by the consortium EMVCo for
the purpose of promoting the global standardisation of electronic financial transactions – in particular the global
interoperability of chip cards (ECB Glossary http://www.ecb.europa.eu/home/glossary/html/index.en.html).
22
Source: EPC, the latest available data.
17
National SEPA Migration Plan, April 2014
25
share of SEPA payment transactions in total payment card transactions on POS terminals in
the eurozone in June 2013 was 79.6%.23
Although the European Payment Council has developed a general SEPA Cards Framework,
further standardisation is required before the deadlines for the migration to the third SEPA
payment instrument are defined. The objectives of a SEPA for Cards will be achieved through
the use of harmonised, interoperable and free standards, which are openly available to all
parties within the card payment value chain. This vision is supported by the Cards
Stakeholders Group, established in 2009, which represents retailers, processors, IT
equipment vendors, card schemes and the European Payments Council. The Cards
Stakeholders Group was established in order to reach an agreement as to the standards
required to realise the SEPA for Cards project and the deadlines for the implementation of
these standards. The initiative aims at removing technical obstacles which prevent the
development of SEPA for Cards.
The SEPA Cards Standardisation Volume, adopted by the Cards Stakeholders Group, defines
a set of requirements to ensure an interoperable and scalable card and terminal
infrastructure across SEPA, based on open and free standards.24
The SEPA for Cards in the Republic of Croatia is not covered by this Migration Plan.
SEPA for Cash
This SEPA initiative is aimed at replacing cash payments by cashless forms of payments.
Despite the fact that cash accounts for a falling proportion of payments, it is in general still
the predominant payment method and the demand for cash continues to grow.
The disadvantage of cash payments is the high handling cost. The European Payments
Council and the European Security Transport Association (ESTA) adopted the document
Improving the Efficiency of the Handling of Cash - Cash Cycle Models, aiming to create
awareness of how to improve the existing cash supply methods and reduce the overall cost
for payment service providers, cash-in-transit companies and retailers.
Member States whose currency is the euro have launched the initiative Single Euro Cash
Area – SECA, aimed at developing a common set of services and practices to be followed by
all national central banks in the eurozone.
SEPA for Cash in the Republic of Croatia is not covered by this Migration Plan.
23
Source: European Central Bank, the latest available data.
In January 2014, the European Payments Council together with the CSG published version 7.0 of the SEPA Cards
Standardisation Volume, that stakeholders must comply with until January 2017.
24
National SEPA Migration Plan, April 2014
26
SEPA and New Payment Methods
New technological developments and advances in IT technology have also been applied to
payment systems. Economic trends have been accompanied by new and innovative payment
methods that also need to be included into the single payment system of the European
Economic Area.
In January 2012, the European Commission adopted the document Green paper: Towards an
integrated European market for card, internet and mobile payments.
The European Payments Council and the European Central bank (through the Euro Retail
Payments Board) monitors the development of new payment methods and, in cooperation
with other stakeholders, works on the development of reliable and secure payment
methods.
New payment methods are not covered by the Republic of Croatia SEPA Migration Plan.
SEPA for Mobile
The European Payments Council issued the White Paper Mobile Payments in October 2012
and the White Paper Mobile Wallet Payments in January 2014, simple and easily
understandable information materials on m-payments, as well as other materials containing
requirements and instructions for managing mobile payments.25
eSEPA
With the growing popularity of the internet, e-commerce has also become increasingly
popular with consumers. The growth of e-commerce therefore requires the development
and implementation of e-commerce payment solutions that will be accessible to consumers,
efficient and secure. E-commerce payments are currently mostly made as card-not-present
payments.
New e-commerce payment solutions are required by retailers who want their customers to
be able to pay for the products purchased in a simple and secure way and at an affordable
price. E-retailers can use specialised service providers for technical and contractual issues as
well as issues related to payment processing.
In June 2012, the European Payments Council decided to cease developing the proposal for
the SEPA e-payments framework and abandoned the launch of an initiative towards the
same goal or effect. The European Payments Council decided to develop a scheme or adopt
an existing scheme.
The development of e-payments undoubtedly brings multiple benefits to consumers,
retailers and payment service providers. However, the security and protection of the overall
payment process in such transactions need to be ensured.
25
Technical documents for the SEPA mobile payments are available at:
http://www.europeanpaymentscouncil.eu/content.cfm?page=sepa_credit_transfer under EPC technical documents.
It should be noted that the EPC periodically updates and releases new versions of technical documents.
National SEPA Migration Plan, April 2014
27
For this purpose, the SecuRe Pay (European Forum on the Security of Retail Payments) of the
European Central Bank prepared the Recommendations for the security of internet
payments and released a proposal for the Recommendations for payment account access
services.
Despite the slow progress in the area of eSEPA, the Eurosystem and other relevant bodies
strive to encourage and support common initiatives for standardisation, launched by market
participants at the European level, ensuring that all major participants can participate in that
process.
In this context, developments in eSEPA within the SEPA project need to be monitored.
SEPA payment instruments
SEPA Credit Transfer
SEPA Direct Debit
SEPA for Cards
SEPA for Cash
New payment methods: SEPA for Mobile; eSEPA
National SEPA Migration Plan, April 2014
28
Additional Optional Services – AOS
The European Payments Council anticipates the possibility that payment service providers
will, in addition to the prescribed scheme for specific payment instruments, develop
additional services to offer their payment service users.
The European Payments Council’s SEPA Credit Transfer and SEPA Direct Debit (Core and B2B)
Schemes have recognised that individual scheme participants and communities of
participants will provide additional services based on the Schemes so as to meet specific
expectations of payment service users. These additional; complementary services are
described as Additional Optional Services (AOS). Payment service providers in the Republic
of Croatia that will adhere to the SEPA Scheme or Schemes may also develop AOS.
The following two types of additional optional services (AOS) are identified:
- additional optional services provided by banks to their customers as value-added
services which are nevertheless based on the core payment schemes. These AOS are
purely a matter for banks and their customers in the competitive space.
- additional optional services provided by local, national and pan-European communities
of banks, such as the use of additional data elements in the ISO 20022 XML standards.
Participants (payment service providers that have adhered to the SEPA Scheme) may only
offer AOS in accordance with the following principles:
- AOS must not compromise interoperability of the Scheme nor create barriers to
competition. The Scheme Management Committee (SMC) of the European Payments
Council should deal with any complaints or issues concerning these requirements related
to compliance with the Rulebook as part of its normal procedures, as set out in the Internal
Rules.
- AOS are part of the market space and should be established and evolve based on market
needs. Based on these market needs, the EPC may incorporate commonly used AOS
features into the Scheme through the processes set out in the Internal Rules.
- There should be transparency in relation to community AOS. In particular, details of
community AOS relating to the use of data elements present in the ISO 20022 XML
payment standards should be disclosed on a publicly available website (in both the
language of the Member State and in English).
The following AOS are currently operational or in the project phase: a possibility to use the
Greek character set, reducing the deadline for the execution of credit transfers to one day
(the SEPA Rulebook and Directive on payment services – at the longest until the end of the
next working day, that is, two days), keeping the mandate for the execution of direct debit
with the payee’s bank, amount verification in the execution of direct debits by the payer's
bank (according to the maximum amount), amount verification in the execution of one-off
direct debit by the payee’s bank, earlier submission of information on the mandate to
execute direct debit (prior to the payment transaction), a central base of mandates for direct
debits, rerouting of credit transfers in the case of closing an account to a new account (12
months), etc.
National SEPA Migration Plan, April 2014
29
SEPA – clearing and settlement of payment transactions
Regulation (EU) No 260/2012 sets forth the rules governing the execution of credit transfers
and direct debits when they are executed to another payment service provider (via
correspondent banking) and when they are executed through a payment system.
"Payment system" means a funds transfer system with formal and standardised
arrangements and common rules for the processing, clearing and/or settlement of payment
transactions26.
SEPA payment systems are called Clearing and Settlement Mechanisms – CSM.
The provisions of Regulation (EU) No 260/2012 relate to payment transactions that are not
carried out through large value payment systems so that plans for the migration to SEPA
payment instruments cover retail payment systems.
The European Central Bank has established the 2013 Eurosystem reference criteria for SEPA
compliance of infrastructure27 so that a payment system could support the SEPA Credit
Transfer and Direct Debit Schemes. The Schemes are separate from the infrastructure.
Pursuant to Article 4 paragraph (2) of Regulation (EU) 260/2012, payment systems operating
in euro must ensure interoperability with other payment systems operating in euro, as of 1
February 2014 in Member States whose currency is the euro (Article 4 paragraph (5)) and as
of 31 October 2016 in Member States whose currency is not the euro, including the Republic
of Croatia (Article 16 paragraph (8)).
26
Article 2, paragraph (1), item (29) of the Payment System Act.
http://www.ecb.europa.eu/paym/sepa/elements/compliance/html/index.en.html
It should be taken into account that the EPC no longer prescribes the PE_ACH/CSM Framework.
27
National SEPA Migration Plan, April 2014
30
Payment instruments in the Republic of Croatia
Credit transfer
Credit transfer is the most commonly used payment instrument in the Republic of Croatia,
both considering the number and value of executed payment transactions.
National credit transfers in kuna
Credit transfers in 2013
Initiation methods
Paper-based
Through the internet
Via telebanking
By mobile telephones
By fixed line telephones
Other
TOTAL
Number of
transactions
26,360,102
98,118,629
4,667,866
1,329,029
286,580
16,179,331
146,941,537
Value of transactions
in HRK '000
495,553,319.4
760,342,623.6
76,151,718.1
1,807,855.2
374,463.1
383,622,806.3
1,717,852,785.70
Source: CNB: Data are aggregated on the basis of reports received pursuant to the Decision on the obligation to submit the
report on payment statistics (Official Gazette, 189/2004 and 127/2009.
*Data include payment transactions of payment service users and exclude transactions of banks performed in their own
name and for their own account.
Direct debits
Since its coming into force, the Payment System Act has defined the direct debit payment
instrument and the rights and obligations of payment service providers and payment service
users related to the execution of this payment instrument.
This service was at the disposal of payment service users prior to coming into force of the
new Payment System Act, often entitled as the"standing order"28. The Act requires payment
service providers to bring their contractual relationships with payment service users in
compliance with legislative provisions.
A system for the settlement of direct debit transactions has not been established in the
Republic of Croatia. At the meeting of the Council of NCS participants, held on 22 September
2011, a Working Group for the Implementation of Kuna Direct Debit in the Republic of
Croatia was set up. The outcome of the Group's activities was the proposal that the national
kuna direct debit scheme be established as the SEPA Direct Debit scheme.
28
Payment transactions wherein a bank, pursuant to a contract concluded with a payment service user – the payer,
executes a payment transaction debiting the payer's account in the given intervals, to previously agreed or definable
amount, with the payee often not being aware of the contract between the payer and the payer's payment service
provider.
National SEPA Migration Plan, April 2014
31
National kuna direct debits
Direct debits, standing order and debiting without an order in 2013
Number of transactions
Value of transactions, in HRK '000
142,700,391
332,287,767.2
Source: CNB: Data are aggregated on the basis of reports received pursuant to the Decision on the obligation to
submit the report on payment statistics (Official Gazette, 189/2004 and 127/2009. More precise data on direct
debits will be available for 2014, based on data submitted pursuant to a new regulation on the collection of
payment statistics of the Croatian National Bank.
*Data include payment transactions of payment service users and exclude transactions of banks performed in
their own name and for their own account.
Cross-border direct debits are not executed in the Republic of Croatia.
Payment cards
Payment cards are a very popular payment instrument in the Republic of Croatia. Banks,
inter alia, issue debit payment cards as current and giro account cards (5.85 million of which
are opened in the Republic of Croatia29. In addition to by banks, payment cards are also
issued by two electronic money institutions – card issuers, authorised to issue electronic
money and provide payment services by the Croatian National Bank.
Type of card
Number of payment
cards in circulation
Balance as at 31 Dec.
2013
Credit cards
Revolving cards
Delayed debit cards
Charge cards
Debit cards
Prepaid cards
Other cards
Total
Total transactions in 2013
Number of
transactions
Value
in HRK '000
150,799
2,358,356
763,166.9
645,236
471,336
549,123
6,585,770
180,742
32,808
8,615,814
28,595,499
27,449,374
38,216,504
213,045,856
759,924
138,006
310,563,519
7,542,848.5
9,070,021.7
9,735,364.1
87.726.937,5
135,103.9
46.027,7
115,019,470.4
Source: CNB. Data are aggregated on the basis of reports received pursuant to the Decision on the obligation to
submit the report on payment statistics (Official Gazette, 189/2004 and 127/2009).
In the Republic of Croatia, 7,102,506 payment cards issued to citizens (86% of the total
number of cards issued) and 409,382 payment cards issued to business entities (81.64% of
the total number of cards issued) are chip cards30. Although official figures are not available,
most of these cards are considered to be EMV-compliant.
29
Source: CNB. Data are aggregated on the basis of reports received pursuant to the Decision on the obligation to submit
the report on payment statistics (Official Gazette, 189/2004), balance as at 31 Dec. 2012.
30
Source: CNB: Data are aggregated on the basis of reports received pursuant to the Decision on the obligation to submit
the report on payment statistics (Official Gazette, 189/2004 and 127/2009). More precise data on EMV-compliant payment
cards will be available for 2014, based on data submitted pursuant to a new regulation on the collection of payment
statistics of the Croatian National Bank.
National SEPA Migration Plan, April 2014
32
All payment cards issued in the Republic of Croatia carry the brands of large global card
payment schemes.
M-payments
Three mobile network operators in the Republic of Croatia have been authorised by the
Croatian National Bank to issue electronic money and provide certain payment services as
electronic money institutions31.
In accordance with the authorisation granted, mobile network operators provide payment
service users with a possibility to execute payment transactions by an SMS service via mobile
phones. Payment service users are currently enabled to use an SMS service to execute small
payment transactions – pay parking charges, public transport tickets, etc.32.
31
Register of institutions: http://www.hnb.hr/platni-promet/institucije/h-registar-institucija-e-novac.pdf
Statistics will be available for 2014, based on data submitted pursuant to a new regulation on the collection of payment
statistics of the Croatian National Bank.
32
National SEPA Migration Plan, April 2014
33
Clearing and settlement of payment transactions in the Republic of Croatia
Credit transfers
National kuna credit transfers between two payment service providers are executed
through payment systems. In accordance with Article 43 paragraph (2) of the Payment
System Act, the deadline for the execution of these payment transactions is the same
business day when the payment order is received pursuant to Article 39 of the Payment
System Act.
There are two payment systems operating in the Republic of Croatia – the Croatian Large
Value Payment System and the National Clearing System.
The Croatian Large Value Payment System is a payment system for the settlement of funds
transfer orders in real time on a gross basis, where the settlement in the participants'
accounts during a CLVPS settlement day is effected individually. The System operator is the
Croatian National Bank. The System became operative on 6 April 1999.
The National Clearing System is s a payment system for the clearing of funds transfer orders
between its participants based on a multilateral net principle. The multilateral net clearing of
funds transfer orders implies a continuous clearing of funds transfer orders submitted for
clearing by participants during an NCS clearing day. The System operator is the Financial
Agency. The System became operative on 5 February 2001.
The Croatian National Bank adopted the Decision establishing that the Croatian Large Value
Payment System and the National Clearing System comply with the conditions set forth in
the Act on Settlement Finality in Payment and Financial Instruments Settlement Systems
(Official Gazette 117/2008).
Within the meaning of the provisions of Regulation (EU) No 260/2012 retail payment
systems are covered by plans for the migration to SEPA payment instruments.
The National Clearing System currently executes the clearing of national kuna credit transfer
transactions. The National Clearing System operator – Financial Agency, in a letter of intent
sent to the CSCC on 3 June 2013, stated its readiness to ensure the possibility of clearing
SEPA kuna and euro credit transfers and SEPA kuna and euro direct debits as well as the
establishment of a payment system for the cross-border exchange and clearing of SEPA euro
credit transfers.
National SEPA Migration Plan, April 2014
34
Other payment instruments
In the Republic of Croatia, direct debits are either executed within one payment service
provider in the manner that both the payer’s and payee’s account are held with one
payment service provider or, in the case when the payee’s account is held with another
payment service provider, the direct debit transaction is executed at the initiative of the
payee via payment systems using the national credit transfer scheme.
Payment transactions executed by payment cards are processed in card payment systems,
and payment transactions executed through an SMS service on mobile phones are executed
via operating systems of mobile network operators.
National SEPA Migration Plan, April 2014
35
Migration prerequisites – SEPA adherence
A necessary prerequisite for the migration to SEPA payment instruments is that a payment
service provider authorised to provide credit transfer and direct debit payment services that
wishes to provide one or both of these services adheres to the SEPA Scheme or Schemes.
In short, the SEPA adherence process requires an administrative procedure. As a prerequisite
for the adherence to the Schemes, payment service providers are required to submit the
appropriate completed documentation to the European Payments Council, which processes
it and on this basis adopts a decision on adherence.
Detailed guidance on the process of adherence to the Payment Schemes is available at the
European Payments Council website, separately for the SEPA Credit Transfer and SEPA Direct
Debit. Each of the Schemes (the SEPA Credit Transfer and SEPA Direct Debit) requires
separate documentation and adherence process.33
The Adherence Pack comprises the following documents:
The Scheme Adherence Agreement;
Schedule to the Adherence Agreement;
Legal Opinion.
Documents contained in the Adherence Pack together form a valid application for adherence
to the Schemes. Institutions looking to adhere to the Schemes submit the Adherence Pack
either on their own or through agents and are responsible for the correct execution of the
Adherence Agreement and the accuracy of information stated in the submitted
documentation.
In accordance with the Guide to the Adherence Process of the European Payments Council,
the documentation is first submitted to the National Adherence Support Organisation –
NASO, which then forwards it to the European Payments Council.
The realisation of the migration project also requires the designation of a national body
competent to provide support to the adherence process – the National Adherence Support
Organisation – NASO, which falls within the competence of the NPSC.
NASO
The role of the National Adherence Support Organisation – NASO, is to provide support to
applicants acting as the first point of contact between them and the European Payments
Council and an overall facilitator in the process of collecting the required documentation and
the Scheme adherence process. The NASO does not take on any legal obligations or
33
The overall adherence process for the Payment Schemes is available at the EPC website, see links:
SEPA Credit Transferhttp://www.europeanpaymentscouncil.eu/content.cfm?page=adherence_to_the_sct_scheme,
SEPA Direct Debithttp://www.europeanpaymentscouncil.eu/content.cfm?page=adherence_to_sdd_schemes.
National SEPA Migration Plan, April 2014
36
liabilities, unless otherwise agreed with the adhering institutions. The European Payments
Council takes on full liability for adopting a decision on the submitted documentation.
Institutions' adherence to the Schemes is, as a rule, realised via the NASO, which sends all
the received documentation to the European Payments Council for processing 34. There is
also a possibility that one or more applicants nominate an agent, which prepares and
submits the Adherence Pack to a chosen NASO on their behalf.
The NASO should establish a means through which the institutions adhering to the Schemes
can better understand the overall adherence process (availability in the Croatian language,
etc.) and has the following tasks:
forming an "adherence" project management team and allocating resources;
providing guidance on the adherence process and a helpdesk for applicants;
organising the collection of Adherence Packs;
checking Adherence Packs; and
organising and managing the process of submitting Adherence Packs to the
European Payments Council.
On the national level, the function of the NASO may be performed by a natural person or
administrative body, provided that such a natural person or administrative body can
implement the role of the NASO in accordance with the tasks specified in the Internal Rules.
Necessary prerequisite for the SEPA migration
SEPA Credit Transfer
http://www.europeanpaymentscouncil.eu/content.cfm?page=adherence_to_the_sct_scheme
SEPA Direct Debit
http://www.europeanpaymentscouncil.eu/content.cfm?page=adherence_to_sdd_schemes
NASO – National Adherence Support Organisation – a national body providing support in
the Scheme adherence process
facilitates the administrative procedure for the adherence
34
Exceptionally, the EPC allows a direct submission process for institutions with four or more subsidiaries located in four or
more SEPA jurisdictions. These institutions may submit the Adherence Pack directly to the EPC, without the intervention of
a NASO.
National SEPA Migration Plan, April 2014
37
Migration plan
28 January 2008
introduced
SEPA Credit
Transfer
2 November 2009
introduced
SEPA Direct
Debit
1 July 2013
Regulation
(EU) No
260/2012
takes effect
31 October 2016
deadline for
migration to SEPA
Credit Transfer
and SEPA Direct
Debit
The migration implies the transition from the existing national rules, standards and schemes
for the execution of payment transactions to the execution of payment transactions in
accordance with the SEPA Scheme, rules and standards.
Given that in accordance with Article 16 paragraphs (2) and (8) of Regulation (EU) No
260/2012 the deadline for migration to the SEPA Credit Transfer and SEPA Direct Debit, in
euro, in the Republic of Croatia is 31 October 2016, the first plan of migration to SEPA
payment instruments relates to credit transfer and direct debit. However, the deadlines for
the implementation of SEPA standards for payment cards and accepting devices, which are
also binding, although not defined by a regulation, but pursuant to an agreement within the
European Payments Council.
In addition, migration plans can envisage earlier deadlines for the migration to SEPA
payment instruments than the prescribed date 31 October 2016 for payment transactions in
euro and for the implementation of the SEPA standard for national payment transactions in
kuna.
A possible earlier transition to SEPA payment instruments could result in several benefits,
including the reduction in the number of channels for the execution of payment
transactions, which will in turn drive down these channels' management and maintenance
costs, an earlier preparation for a new channel that must be introduced for payment
transaction in euro as a legal requirement pursuant to Regulation (EU) No 260/2012, etc.
Furthermore, as the deadline for the migration in eurozone Member States is 1 August 2014
(Regulation (EU) 260/2012), correspondent banks from eurozone Member States might be
interested in communicating with banks from the Republic of Croatia via SEPA payment
transactions.
In addition, the development of the national infrastructure will not only be beneficial for the
execution of SEPA payment instruments but also for the compliance with other
requirements prescribed for payment service providers, primarily those related to the
deadlines for the execution of national and cross-border payment transactions in euro
National SEPA Migration Plan, April 2014
38
referred to in the Payment System Act and those related the equality of charges for the
execution of payment transactions pursuant to Regulation (EU) No 924/2009.
SEPA migration
SEPA standard
Requirements for banks as of 31 October 2016, when euro credit transfer and direct debit
transactions for clients are to be executed within the EEA:
the payment account identifier must be the IBAN;
the message format must be ISO 20022 XML;
o when it is executed through another payment service provider (via
correspondent banking) and
o when it s executed via a retail payment system (direct or indirect participant)
the identifier of the payee's and payer's bank is the BIC, but the bank must ensure
that the client uses the IBAN as a single payment account identifier (both for national
and cross-border payments) without stating the BIC of the correspondent bank;
the ISO 20022XML format must also be applied in the bank to client relationship
(payment transaction files, information on executed payment transactions);
National SEPA Migration Plan, April 2014
39
Operational plan for the migration to SEPA payment instruments
Pursuant to the Decision on the establishment of the Croatian SEPA Coordination
Committee, the tasks of the CSCC include the development and implementation of the
national kuna credit transfer and direct debit SEPA scheme and the development and
implementation of solutions required for the execution of credit transfers and direct debits
in euro in accordance with SEPA rules and Regulation (EU) No 260/2012.
Given the complexity of each European Payments Council's scheme for SEPA payment
instruments, each working group should be entrusted with a detailed analysis of each
particular scheme, aimed at establishing the correlations and differences between the
existing payment transactions and SEPA payment transactions, with a view to preparing all
relevant payment service providers for SEPA payment instruments, and at identifying all
elements requiring a joint agreement of the banking community (e.g. a structured payer's
identifier, structured payment reference, etc.).
In order to define the required activities, their priority, order and deadlines, it is necessary
that relevant working groups develop an operational plan for the migration to the SEPA
Credit Transfer and SEPA Direct Debit.
The migration plan should include the transition to SEPA payment instruments that comply
with the provisions on the execution of credit transfers and direct debits referred to in
Regulation (EU) No 260/2012 and the provisions of other regulations governing payment
systems, while leaving intact the advantages and good practice currently existing in the
national payment system. This primarily refers to the deadlines for the execution of national
payment transactions, as set forth in Article 43 paragraph (2) of the Payment System Act.
While the main focus is on the SEPA Credit Transfer and SEPA Direct Debit, due to the
migration deadlines referred to in Regulation (EU) No 260/2012, the migration for SEPA
cards and card infrastructure should also be taken into account, as well as the need for the
establishment of a relevant working group to monitor innovations within the SEPA related to
payment cards. Specifically, while most payment cards and most of card infrastructure in the
Republic of Croatia is in compliance with the EMV (SEPA) standard, the task of the working
group would be to establish the degree of compliance with SEPA standards and develop a
national operational plan.
National SEPA Migration Plan, April 2014
40
Plan of solutions for the execution of SEPA payment transactions
The plan of solutions for the execution of SEPA payment transactions includes:
achieving compliance with Regulation (EU) No 260/2012 regarding the execution of
SEPA euro credit transfer transactions (national and cross-border), and
adjusting the National Clearing System for the execution of kuna payments in
compliance with SEPA standards (credit transfers and direct debits).
Initiative of the Croatian banking community
On 24 July 2013, the Croatian National Bank received a letter from the Croatian Banking
Association, Croatian Chamber of Economy Banking Association and Fina, proposing that the
Croatian National Bank, for the purpose of achieving the goals related to the implementation
of the SEPA project in the Republic of Croatia, take the following steps:
support the establishment of the National Clearing System for the clearing of euro
payment transactions (Euro-NCS) by assuming the role of a settlement agent for euro
payment transactions (national and cross-border), and ensure direct participation in
the TARGET2 system for banks;
authorise the adjustment of the National Clearing System for the clearing of kuna
transactions in compliance with SEPA technical and technological standards.
The Croatian National Bank supports the interest of the whole banking community and Fina
to establish a single systemic solution at the level of the Republic of Croatia with the purpose
of achieving compliance with Regulation (EU) No 260/2012 and the intention that the
provision of payment services in kuna be adjusted with SEPA standards, as well as that the
existing National Clearing System be adjusted for kuna payments.
In February 2013, the Croatian National Bank undertook to support the requirements, as
stated below:
the establishment of the National Clearing System for the clearing of euro payment
transactions (Euro-NCS), by assuming the role of a settlement agent for euro
payment transactions (national and cross-border) and the ensuring of direct
participation in the TARGET2 system for banks within the TARGET2 component;
the adjustment of the National Clearing System for the clearing of kuna transactions
in compliance with SEPA standards.
The Croatian National Bank adopted this decision based on the following assessment of the
initiative:
the initiative ensures a single technological platform for the processing of euro
payment transactions in compliance with Regulation (EU) No 260/2012 in the
Republic of Croatia;
it includes all banks as future participants in the Euro-NCS;
National SEPA Migration Plan, April 2014
41
it enables the adoption of a single plan of application of Regulation (EU) No 260/2012
at the level of the Republic of Croatia and the monitoring of its realisation by the
Croatian National Bank as competent institution;
it establishes preconditions for the further development of payment services in the
Republic of Croatia in compliance with European standards,
it reduces the costs of processing of euro payment transactions and creates
preconditions for the reduction of charges for these payments for end users of
payment services, and
it enables adequate preparation of the overall payment system in the Republic of
Croatia for the euro as the official currency.
National SEPA Migration Plan, April 2014
42
Plan for an infrastructure solution for payment transaction settlement
National kuna payment transactions
Fina, as the owner and operating manager of the National Clearing System, which has been
clearing retail kuna interbank payments since 2001, in accordance with the requirements of
the Croatian banking community, agreed to make an adjustment to the National Clearing
System enabling it to clear kuna credit transfer transactions in compliance with technological
and technical SEPA standards.
National and cross-border euro payment transactions
An infrastructural solution for the settlement of national and cross-border payment
transactions implies:
the establishment of a National Clearing System for the clearing of euro payment
transactions (Euro-NCS), which executes the clearing of national euro payment
transactions;
the interoperability of the Euro-NCS realised through the euro retail payment system of a
Member State; and
the settlement of both national and cross-border euro payment transactions in the
TARGET2 system, in euro accounts of banks opened in the TARGET2 HR component.
National euro payment transactions
In accordance with the requirements of the Croatian banking community, Fina agreed to set
up a single national payment infrastructure for the execution and clearing of euro payment
transactions (Euro-NCS), for the clearing of SEPA credit transfers.
Banks would have euro clearing accounts in the Euro-NCS, and the System would process
interbank SEPA euro credit transfers that are in full compliance with the requirements of
Regulation (EU) No 260/2012.
Cross-border euro payment transactions
Cross-border payment transactions involving SEPA euro credit transfers are executed
through the Euro-NCS, which is interoperable with a retail payment system of another
Member State and achieves its interoperability using the EBA model through the panEuropean payment system EBA Clearing STEP2.
In this manner, full SEPA reachability for Euro-NCS participants is achieved.
National SEPA Migration Plan, April 2014
43
In order for the interoperability of the Euro-NCS-a to be achieved, the Croatian National
Bank will participate in the euro payment system of another Member State as a direct
participant and in the EBA Clearing STEP2 system as an indirect participant. The Croatian
National Bank would have the role of a settlement agent for Croatian banks, which means
that cross-border payment transactions for Croatian banks would be executed through a
Croatian National Bank account in the euro payment system of another Member State. The
role of a settlement agent in the EBA Clearing STEP2 system for the Croatian National Bank
and banks would be assumed by the central bank of another Member State.
To cover the clearing for cross-border payments from the Euro-NCS, banks pay funds to a
Croatian National Bank account in the TARGET2 HR component.
Settlement of clearing – establishment of the TARGET2 HR component
According to the proposed solution, the Croatian National Bank, for the purpose of
managing euro accounts of banks, establishes and operates the TARGET2 HR component.
Final positions of banks from the clearing in Euro-NCS (national euro payment transactions
and cross-border euro payment transactions) are settled in the TARGET2 HR component.
Banks keep accounts in the TARGET2 HR component and have the possibility to
independently initiate payments through the TARGET2 system.
National SEPA Migration Plan, April 2014
44
Clearing model
Execution of a SEPA credit transfer transaction (SCT)
BANK A
SCT
Euro-NCS
SCT
Euro payment
system from
another Member
State
SCT
final settlement
STEP2
SCT
BANK B
final settlement in
the STEP2 system
TARGET T2 HR
component
-
-
the Croatian National Bank is a direct participant in the euro payment system of another
Member State and an indirect participant in the EBA Clearing STEP2 system;
banks are indirect participants in the euro payment system of another Member State and
indirect participants in the EBA Clearing STEP2 system through another central bank;
a settlement agent in the euro payment system of another Member State is the Croatian
National Bank;
a settlement agent in the EBA Clearing STEP2 system is another central bank;
banks provide the Croatian National Bank with the coverage for the settlement of clearing of
cross-border payment transactions in the Euro-NCS in its euro account in the TARGET2 HR
component;
the Euro-NCS sends to the euro payment system of another Member State only payment
transactions for which coverage is ensured;
the settlement of cross-border payment transactions form the Euro-NCS is performed in the
Croatian National Bank’s euro account in the TARGET2 HR component;
the settlement of national payment transactions from the Euro-NCS is performed in euro
accounts of banks in the component TARGET2 HR;
- the Euro-NCS is the provider of operational and technical services for the Croatian National
Bank and exchanges data on payment transactions with the euro payment system of another
Member State.
National SEPA Migration Plan, April 2014
45
Information and communication plan
A key objective of the communication plan is to raise awareness of the SEPA and SEPA
instruments by emphasising the importance of incoming changes and the benefits they will
bring to the business community and general public.
In order to maximise the impact of the SEPA, it is necessary to provide information to all
migration participants: payment service providers, payment service users, technical
assistance providers, public utility companies, other big billers and "the government", as well
as to organise adequate training for target groups.
The intention is for target groups to be informed throughout the whole SEPA project
implementation procedure, from its very beginning, through all project phases until its
completion.
The message on the benefits that the SEPA project brings to citizens and business entities
should be addressed to the following target group segments: professional groups
(stakeholders and companies), payment service provider's payment service users – legal
persons (based on the economic activity, legal status, etc.), consumers (residents, nonresidents, pensioners, students and young population, etc.), budgetary beneficiaries,
government authorities, local and regional self-government units; media.
The communication should be simple, understandable and focused on a specific target
group.
All stakeholders should be provided with timely, clear and consistent information to avoid
any misunderstanding.
The information should focus on the benefits of the SEPA and the implementation of the
SEPA Schemes, but also on the consequences arising from non-compliance with deadlines
set forth in Regulation (EU) 260/2012.
Action plan
organising press conferences and producing press releases on the implementation of
the SEPA project;
maintaining and updating the website;
publishing informative materials and publications;
organising conferences, lectures, workshops and other forms of training featuring
SEPA related presentations;
direct consultations with users;
- participating in SEPA migration campaigns organised by other bodies (the European
Central Bank, European Payments Council).
National SEPA Migration Plan, April 2014
46
Communication channels and information methods
electronically (websites);
direct communication (conferences, presentations, workshops, courses);
informative materials, publications, brochures;
press releases, newspaper articles.
Pursuant to the Decision on the establishment of the Croatian SEPA Coordination
Committee, the definition and realisation of the plan of informing the participants and
general public of the SEPA project in the Republic of Croatia falls within the competence of
the CSCC and are to be carried out in cooperation with the CSF.
SEPA related information is available from pan-European sources (the European Payments
Council, European Central Bank and European Commission – in general and via working
bodies in which the Croatian National Bank and participants in the SEPA bodies of the
Republic of Croatia have their representatives).
The plan should address the method of disseminating this information to all payment system
participants in the Republic of Croatia which is in line with national needs and requirements.
In this context, it is necessary to agree on communication channels, including the set up and
maintenance of the website.
However, payment service users have already been or are being informed on the SEPA
migration elements that will bring about the most significant changes to the procedures
affecting payment service users. This primarily refers to the introduction of the IBAN account
structure and new payment order forms adjusted to SEPA payment instruments.
An important element of the migration, which affects all payment system participants and
requires extensive information, is the introduction of the IBAN account format.
As, starting from 1 June 2013, all transaction accounts in the Republic of Croatia are opened
using the IBAN structure35 and all payer accounts in a payment transaction defined by the
IBAN structure, the most comprehensive element of the migration in the Republic of Croatia
has been completed.
35
In accordance with the provisions of Article 13 paragraph (3) of the Decision on the manner of opening transaction
accounts (Official Gazette 3/2011, 35/2011, 50/2011, 89/2011, 101/2011, 135/2011, 56/2012, 18/2013, 23/2013 and
10/2014).
National SEPA Migration Plan, April 2014
47
The last stage prior to the full implementation of the IBAN structure in payment transactions
is to define the payee's account solely by the IBAN structure of the account, at the latest by
1 June 2014.
Given the large number of transaction accounts opened for citizens and all business entities
in the Republic of Croatia, and due to the obligation imposed on credit institutions to inform
their clients36, all payment system participants in the Republic of Croatia have received
quality information, so that expectations are that the information procedure on the
requirement to define the payee's account with the IBAN structure will be completed with
equal success.
The next big step towards the adjustment of payment service users before 31 October 2016
is the initiation of individual credit transfers or individual direct debits which are not
transmitted individually, but are bundled together, by large users – business entities, in the
ISO 20022 XML format37.
Furthermore, while the agreement on the information and communication plan is yet to be
reached, it needs to be emphasised that the approach of informing payment service users by
their payment service providers has proved successful. It is therefore proposed that this
model is retained at the basic information model to be supplemented by other information
sources (a SEPA related website, brochures, seminars, round table discussions, media, etc.).
Joint activities carried out via SEPA bodies and the development of a communication plan
envisaging communication with each payment system participant will facilitate information
and information dissemination from payment service providers to payment service users, as
well as information and information dissemination to all SEPA stakeholders in the Republic
of Croatia.
Once they are established, all stakeholders will be able to use these communication models
in all subsequent phases of the SEPA project and payment system related to the Republic of
Croatia membership in the EU.
36
In accordance with Article 13 paragraph (6) of the Decision on the manner of opening transaction accounts, credit
institutions must inform payment service users, in a timely and appropriate manner, about the use of the IBAN structure of
transaction accounts in accordance with the provisions of the said Decision.
37
Article 5 paragraph (1) under d) of Regulation (EU) No 260/2012.
National SEPA Migration Plan, April 2014
48
Monitoring the migration progress
A precondition for the monitoring of the migration progress in the Republic of Croatia and
establishing the degree of implementation of the Migration Plan is the collection of payment
statistics.
It will be possible to obtain some of the required statistics from the statistics available to the
Croatian National Bank pursuant to a regulation governing the collection of payment
statistics and/or in another manner.
Accordingly, it is necessary to define the scope of statistics that need to be collected, the
method of collecting and processing these statistics and the competent national body.
The scope of statistics should at a minimum include the monitoring of the number of
payment service providers adhering to the SEPA, the number of payment transactions
executed in compliance with the SEPA Scheme, the share of SEPA payment transactions in
the total number of executed payment transactions, etc.
It should also be taken into account that the European Central Bank also requires certain
statistics from the Croatian National Bank for the purpose of monitoring migration progress
at the EU level.
National SEPA Migration Plan, April 2014
49
Annex 1 Draft of the Migration Plan
Plan of the organisational set-up of the SEPA project in the Republic of Croatia
Activity
Organisational structure of the
SEPA project in the Republic of
Croatia
Establishment of NPSC working
bodies: CSCC
Competent Planned
body
deadline
NPSC
NPSC
Establishment of NPSC working
bodies: CSF
NPSC
Establishment of operative groups
for SEPA Credit Transfer and SEPA
Direct Debit
Establishment of the operative
group for legal issues
Nominating the National
Adherence Support Organisation
(NASO)
Compilation of the SEPA website
CSCC
Compilation of the National
Information and Communication
Plan
CSCC
CSF
Execution status
Agreed on 21st NPSC
meeting
24 April 2013
Decision on the
establishment of the
Croatian SEPA
Coordination Committee
21 May 2013
Decision on the
establishment of the
Croatian SEPA Forum
21 May 2013
Completed
CSCC
Completed
NPSC
CSF
Underway
Underway
National SEPA Migration Plan, April 2014
50
SEPA Migration Plan
SEPA key activity schedule
Activity
Subordinate activity
IBAN
SCT
EURO
KUNA
completed
completed
1 10 2015
1 12 2015
NCS
Infrastructure
SDD
1 10 2015
Target2
1 2 2016
NCS – national
1 4 2016
NCS – cross-border
1 4 2016
XML for users
1 4 2016
1 4 2016
SCT
NCS – national
1 4 2016
1 10 2016
SDD
NCS – cross-border
XML for users
1 10 2016
SEPA Credit Transfer in Euro
National euro payment transactions
In accordance with the proposed plan, an infrastructural solution – the Euro National
Clearing System (hereinafter: the Euro-NCS), which executes the clearing of SEPA credit
transfer transactions would be set up and ready for a test launch on 1 October 2015. The
settlement test would be performed in the TARGET2 test environment.
The Croatian National Bank would join the TARGET2 system (in live operation) on 1 February
2016.
The clearing of national euro payment transactions in the Euro-NCS and the settlement of
the clearing in euro accounts of banks in the TARGET2 system would start production
operations on 1 April 2016.
National SEPA Migration Plan, April 2014
51
Cross-border euro payment transactions
The clearing of cross-border SEPA credit transfer transactions in euro through the Euro-NCS
payment system would start with production operations on 1 April 2016.
Kuna payment transactions in the SEPA format
SEPA Credit Transfer in kuna
The infrastructural solution – the possibility of the clearing of kuna credit transfer
transactions initiated in compliance with the SEPA scheme and in the SEPA format – would
be set up and ready for a test launch on 1 December 2015.
The clearing of kuna payment transactions initiated in compliance with the SEPA scheme and
in the SEPA format would start production operations on 1 April 2016.
SEPA Direct Debit in kuna
The infrastructural solution – the possibility of the clearing of kuna direct debit transactions
initiated in compliance with the SEPA scheme and in the SEPA format – would be set up and
ready for a test launch on 1 October 2015.
The clearing of kuna payment transactions initiated in compliance with the SEPA scheme and
in the SEPA format would start production operations on 1 October 2016.
XML for users
Payment service users initiating individual credit transfers or individual direct debits which
are not transmitted individually, but are bundled together, in accordance with Article 5
paragraph (1) under d) of Regulation (EU) 260/2012 – "large users" should be rendered
capable of initiating euro credit transfers in compliance with the SEPA format as of 1 April
2016.
Large users should be rendered capable of initiating kuna credit transfers in accordance with
the SEPA format as of 1 April 2016, and kuna direct debits in kuna as of 1 October 2016.
Each of the described activities will be specified in detail in the national operational plan for
the migration to the SEPA Credit Transfer and the SEPA Direct Debit, which is to be compiled
by relevant working groups.
National SEPA Migration Plan, April 2014
52
Migration Plan
2014.
1
2
3
4
5
6
2015.
7
8
9
10
11
12
1
2
3
4
5
6
7
2016.
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
Euro payment transactions
Euro NCS CT - test
Target 2
Euro NCS CT national - live
CREDIT TRANSFER
Euro NCS CT cross-border - live
XML for large users
Kuna payment transactions
NCS SEPA CT HRK - test
CREDIT TRANSFER
NCS SEPA CT HRK - live
XML for large users
NCS SEPA DD HRK - test
NCS SEPA DD HRK - live
DIRECT DEBIT
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
XML for large users
8
9 10 11 12