MEPs adopted the single Euro payments area (SEPA) regulation which lays down common rules and standards for euro credit and direct debit transactions among banks. According to them, thanks to this new regulation cross-border bank transfers should become faster, cheaper and safer for EU citizens.

The single Euro payments area legislation passed by Parliament at the plenary session seeks to get simple and efficient cross-border payments. According to MEPs, the legislation sets up EU-wide rules to ensure that banks compete fairly, eliminate hidden national charges, and accelerate transfers could save up to €123 billion within six years, benefitting clients, banks, and businesses. In particular, the single Euro payments area (SEPA) regulation lays down common rules and standards for euro credit and direct debit transactions among banks. It would not apply to personal credit or debit card payments. The first SEPA was launched in February 2008.

With the new legislation, businesses could set up cross-border direct debits in euro between any two bank accounts anywhere in the EU, enabling them to bill customers regularly across borders. The regulation will also enable businesses to establish their payment centres in any EU Member State by eliminating multilateral interchange fees on cross-border direct debits as of 2012; and they could also organise all cross-border euro payments from a single euro account in a country of their choice in order to improve money management and speed up cash flows at lower cost.

For EU citizens, it will no longer matter in which Member State a bank account is held. All account users stand to gain, because international competition among service providers should drive down prices. In addition, the migration to SEPA standards will be easier for bank clients by enabling banks to offer conversion services from national systems and to phase out the need to provide the Business Identifier Code (BIC) code (the IBAN, international bank account number, should suffice). Another gain is a requirement to apply non-discriminatory charges to transfers, irrespective of the amount involved.