EU Payments Integration: The Tale of SEPA, PSD and Other Milestones Along the Road

307 Pages·2010·1.95 MB·English

by  Ruth Wandhfer

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10.1057/9780230313996 - EU Payments Integration, Ruth Wandhöfer
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EU PAYMENTS INTEGRATION ht
The Tale of SEPA, PSD and other Milestones along the Road yrig
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10.1057/9780230313996 - EU Payments Integration, Ruth Wandhöfer
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EU Payments Integration
The Tale of SEPA, PSD and other
Milestones along the Road
Ruth Wandhöfer
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© Ruth Wandhöfer 2010
Foreword © Gertrude Tumpel-Gugerell 2010
All rights reserved. No reproduction, copy or transmission of this
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save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
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Any person who does any unauthorized act in relation to this publication 0
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may be liable to criminal prosecution and civil claims for damages. 1-0
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The author has asserted her rights to be identified as the author of this 20
work in accordance with the Copyright, Designs and Patents Act 1988. ct -
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First published 2010 by nn
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PALGRAVE MACMILLAN. C
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A catalogue record for this book is available from the British Library. pal
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Library of Congress Cataloging-in-Publication Data w
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Wandhöfer, Ruth, 1976– o
EU payments integration: the tale of SEPA, PSD and other milestones al fr
along the road/Ruth Wandhöfer. eri
p. cm. — (Palgrave Macmillan studies in banking and financial mat
institutions) ht
ISBN 978–0–230–24347–7 (hardback) yrig
1. Finance—European Union countries. 2. Payment—European Union op
countries. 3. Euro area. I. Title. C
HG186.A2W35 2010
332.1'78—dc22
2010027570
10 9 8 7 6 5 4 3 2 1
19 18 17 16 15 14 13 12 11 10
Printed and bound in Great Britain by
CPI Antony Rowe, Chippenham and Eastbourne
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Contents
List of Tables viii
List of Figures x
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Foreword by Gertrude Tumpel-Gugerell xi 04-
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About the Author xiv 2
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Acknowledgements xv ne
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Commonly Used Abbreviations and Acronyms xvi ve
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Title I The Opening Act: The Beginning of the End … or h -
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Just the End of the Beginning? 1 eri
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(1) Prelude 1 H
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(2) Overture 3 d to
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Title II E U Financial Regulation Explained: ‘The Powers ns
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and the Pitfalls’ 5 m - li
Introduction 5 co
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(1) Single Market legislation: origins and architecture 6 n
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(2) The institutions, instruments and regulatory ve
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processes 11 algr
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(3) EU legislation in action and the Heisenberg w
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principle 28 m
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Title III S EPA: ‘A New Hope’ 33 al fr
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Introduction 33 mat
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(1) The growing web of payments legislation 33 g
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(2) European banking and payments landscape 40 Co
(3) The Euro as a trigger for further evolution 44
(4) Coping with the Euro introduction: the
Heathrow Group 45
(5) Rattling sabres and a pricing regulation 51
(6) The birth and early years of the EPC 57
(7) A Roadmap emerges 73
v
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vi Contents
Title IV P SD – A Parallel Universe to SEPA: The Odyssey
from the First Ideas to the Final Text 77
Introduction 77
(1) A great idea … or rather lots and lots of them 77
(2) From the NLF to the final text 86
(3) A last sanity check against SEPA requirements 115
Title V From Publication to Transposition: 1
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The Directive Dilemma 118 04-
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Introduction 118 20
(1) First reactions from the market 118 ect -
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(2) The Transposition Working Group and the Co
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PSD Expert Group 120 a
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(3) PSD interpretation: a web of ambiguity emerges 122 P
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(4) PSD national implementation: the Midas touch 128 eric
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(5) Industry guidance to help smooth the path 133 H
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(6) Review of related legislation 135 o
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Title VI S EPA From Design to Launch: Finding Your s
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Way through the SEPA Jungle 142 m - lic
Introduction 142 o
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(1) SEPA standards, design principles and geography 143 ne
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(2) The SEPA schemes: What’s inside? 152 ec
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(3) So what benefits can the SEPA schemes gr
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bring to users? 165 w.
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(4) The launch of SEPA: reality versus expectation 172 m
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(5) SEPA for cards: pump up the volume 176 al fr
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(6) Infrastructures in SEPA: a fresh look 182 at
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(7) SEPA for cash update: has the bleeding ght
stopped yet? 185 pyri
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Title VII Postlude: The Future for European Payments and
the Emergence of a Global Agenda 187
Introduction 187
(1) PSD: Life after implementation? 187
(2) Je Ne SEPA?: Achievements so far and next steps 197
(3) Completing the picture: the world is watching 221
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Contents vii
Epilogue 254
Appendix I: PSD Implementation: Use of Derogations in Titles III
and IV by EU/EEA Member States 256
Appendix II: PSD Implementation: Examples of cases of gold-plating,
non-conforming transposition and other interesting transposition
features at Member State level 275
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Notes 279 4-
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Index 284 20
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List of Tables
3.1 Summary of credit institutions and branches in key
EU member states as at 2007 41
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3.2 Overview of average use of payment types per citizen 4-0
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across a number of individual EU member states 1-
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plus the EU 27 as at 2007 43 ct - 2
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3.3 EC Communication 2000/36: Objectives 52 n
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3.4 Convention on Credit Transfers in Euro: Key ve
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features 62 gr
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3.5 ICP Convention: Key features 62 h -
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3.6 Initial SEPA indicators 65 ueri
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3.7 Key SEPA milestones presented during the ET
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October 2003 SEPA workshop 66 d t
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3.8 The initial EPC recommendations on cards 68 en
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3.9 SEPA for cash: the nine recommendations 69 m - li
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3.10 The CSM Model 72 ct.
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3.11 Key Deliverables Requested in the ECB’s Third on
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Progress Report on Retail Payments 74 av
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4.1 An overview of the 21 Annexes 78 pal
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4.2 The PSD’s co-decision timeline 88 w
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4.3 Article 75 of the PSD 112 al fr
5.1 List of Member State derogations within the PSD 129 ateri
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5.2 PSD industry guidance overview 133 ht
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5.3 Article 3 of Directive 2009/111/EC 141 pyri
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6.1 Summary of the Finnish SCT migration plan 174
6.2 SCF-compliant options 178
6.3 SEPA scheme compliant CSMs and PE-ACH
providers 184
7.1 Examples of practical issues experienced since
PSD went live 188
viii
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List of Tables ix
7.2 EU payments harmonisation: the four forces
of change 222
7.3 List of African regional cooperations 228
7.4 Membership of the African regional cooperation
groupings 230
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