How does SEPA affect me?
Ireland's national payment system for credit transfers and direct debits ended on the 31st of January 2014 and was replaced by SEPA credit transfer scheme on the 1st of February 2014. This means that from 1 February, you must start using SEPA compliant bank details for all domestic direct debits and credit transfers. This also affects any electronic payments you make or receive to international companies based in the SEPA region, where the euro is the primary currency. TASBooks v5 is fully compliant with SEPA legislation.
Branch Identifier Code and International Bank Account Number
Under SEPA legislation, you must include Branch Identifier Code (BIC) and International Bank Account Number (IBAN) on all electronic payments. These replace the traditional bank sort codes and account numbers. If you’re not sure what your BIC and IBAN are, please contact your bank.
The BIC is used in place of the traditional sort code and is used to identify the bank or financial institution. It’s between 8 and 11 characters and includes:
- The institution code – This is four letters and is unique to the financial institution.
- The two letter country code for the location of the bank, for example IE.
- Location code – This is two characters and identifies a location within the relevant country, for example a city, province or time zone.
- Branch code – This is an optional three character code that identifies a subdivision of the bank or financial institution in the relevant country.
The IBAN is used instead of the traditional bank account number to identify the bank account. It can be up to 34 characters and includes:
- The two letter country code
- Check digits – Two numbers that help to confirm the integrity of the basic bank account number.
- The basic bank account number – This can be up to 30 characters. The number of characters is specific to each country and includes the bank or branch identification code.
Converting to BIC and IBAN
Once you've enabled SEPA, to save you time, you can easily convert your existing Irish bank accounts sort codes and account numbers to IBAN and BIC. This converts all Irish accounts whether the accounts belong to yourself or your customers and suppliers. When you create new customers and suppliers, if you don't have a IBAN and BIC, you can generate one from within their record. If the record already has a BIC and IBAN, no changes are made.