Session 9 - SEPA INSTANT CREDIT TRANSFER (ICT) SCHEME @LoveBanking
SEPA Instant Credit Transfer
Consumers expect ever easier and faster services. The SCT Inst scheme delivers these by enabling pan-European credit transfers with the funds made available on the account in less than ten seconds.
The key features of SCT Inst explained
An initial maximum duration of ten seconds
When the payer’s payment service provider (PSP) is certain that all mandatory attributes for processing the transaction are valid, it marks this starting point with a timestamp. Within ten seconds, the beneficiary’s PSP has to report to the payer’s PSP either that the money has been made available to the beneficiary or that the transaction has been rejected. If the maximum execution time of ten seconds cannot be met due to exceptional processing circumstances, the SCT Inst rulebook foresees a hard time-out deadline of 20 seconds. The payer’s PSP cannot unilaterally reject the transaction until the moment it receives a negative confirmation message reporting its failure.
A maximum amount of 100,000 euros
Any SCT Inst transaction higher than this maximum amount is rejected by the inter-PSP parties involved in the process chain (unless otherwise previously agreed between the participants).
Though the transaction must be made in euros, the payment accounts held at PSPs operating in SEPA do not have to be denominated in euros.
With the spread of smartphones and electronic commerce, the digitalisation of the economy rs, on the other hand, want the certainty of being paid as soon as they sell their goods and services. The SCT Inst scheme fulfils these expectations.
20 top use-cases of the SCT Inst scheme
SEPA Instant Credit Transfer Features
PERSON-TO-PERSON PAYMENTS
1. Payment of a share of a joint bill instead of giving cash or a cheque
2. Emergency fund transfer to a beneficiary for immediate use (this is especially useful when the beneficiary does not live in the same area than the payer)
3. Purchase on auctions, including on internet
4. Buying goods from another consumer, either online or face-to-face (second-hand car, furniture, antique…)
PERSON-TO-BUSINESS PAYMENTS
5. Payment of online purchases Payment of services rendered
6. Payment of services rendered at home when the service provider requests to be paid on the spot (for example: plumber, electrician, cleaner)
7. (Re)Activation of services (mobile phone top up, online streaming of music and live events , video on demand…)
8. Payment of invoices to avoid late payment penalty fees or cut-off of service delivery
BUSINESS-TO-PERSON PAYMENTS
13. Urgent pay-out of compensation (government welfare, insurance claims) to the consumer
14. Payment for services delivered by freelancers and day-workers at the end of the day or at the moment of completing the project
15. Immediate reimbursement by a merchant of a returned good bought by a consumer
BUSINESS-TO-BUSINESS PAYMENTS
#sepa #banking #payment #iso20022 #euro
Reference - [ Ссылка ]
