Single Euro Payments Area (SEPA)

Published: Prepared by: Version: 1. I N T R O D U C T I O N

04/10/13 (updated 27/02/2014) Ingrid Hay V3

The Single Euro Payments Area (SEPA) is a European Commission (EC) and European Payments Council (EPC) initiative that plans to drive down the barriers of other countries payments and create a single set of standards for euro payments across the EU. For Euro payments, there are a range of options available to organisations via their banks. Under the SEPA scheme the use of International Bank Account Numbers (IBANs) and Bank Identification Codes (BICs) is now mandatory for cross border euro payments and is also mandatory for domestic euro payments. To find out more about SEPA please click the links below. http://www.ipso.ie/section/SEPA http://ec.europa.eu/internal_market/payments/sepa/ This document serves to provide you with a guide on how to set up Legend to capture IBAN and BIC numbers and process collections accordingly. Note: First time presentations and recurring presentations are included in the same single SEPA DD file. Presentations on customers accounts must therefore be submitted to the banks a minim um of 6 working days before the settlement date.. If it is not, it can still be submitted but collections from members will take place 6 working days hence. When a file is produced, Legend refers to the relevant next bill dates (01/02/2014) and then populates the file with the relevant next working collection date.

2. H O W T O S E T U P L E G E N D F O R U S E W I T H S E P A a. Control Panel Settings It is straight forward to enable the use of IBAN and BIC numbers within Legend. Open Legend Control Panel > Global Settings > Payments tab > Tick to Enable IBAN and BIC codes Please also make sure your BACS File Type is set correctly to IREDD

Set the Fee Collections configuration security tokens in the Legend Control Panel > Security Settings > to Open Fee Collections and to Set Configuration (FC Group). To set up IBAN and BIC number entry for online joiners, please contact legend Support who will switch this on for you in Legend CMS. Should you wish to turn off the collection of bank account details completely, go to the Control Panel > Club Settings > Payment tab > select Bank Control Display options and select SEPA.

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Fee Collection Configuration Settings Open the Fee Collection Module. (Note that you will only be able to open the module once you have been given access via the security token referred to above.) Click on Configuration on the left hand side menu. Click on the General Tab > Payment Scheme: o Select SEPA by Club or Enterprise. o Select Collection Application > Fee Collection. o Click SAVE. On the General Tab > Bank Details: o Bank details are brought through from the Legend Control Panel settings. Miscellaneous > All of the below configuration is displayed from the settings in the Legend Control Panel: o Display on Collection Date o Age on Collection Date o Agreement GL Code Override o Auto Invoice Returns Failure BACS Tab: o Please ignore this tab as you must continue using the Payments module for BACS collections for now. Click on the SEPA Tab: o Account Settings > Configure the following: Creditor Name - is the Acquiring Bank (equates to the Originator). Creditor ID - is the Acquiring Banks ID

IBAN - is the equivalent account number for depositing payments BIC is the equivalent sort code for depositing payments o Output Format > This defines the format of files for different banks: Allied Irish Banks (AIB) Local Instrument Code - CORE Header Level Creditor ID Format - Organisation Supplementary Creditor ID Level - Transaction (DrctDbtTxInf) Supplementary Creditor ID Format - Private Accepted File - AIB.XML Bank of Ireland Ulsterbank Local Instrument Code - CORE Header Level Creditor ID Format - Organisation Supplementary Creditor ID Level - Transaction (DrctDbtTxInf) Supplementary Creditor ID Format - Private Accepted File - Ulsterbank.XML Barclays Bank Ireland Local Instrument Code - CORE Header Level Creditor ID Format - Organisation Supplementary Creditor ID Level - Transaction (DrctDbtTxInf) Supplementary Creditor ID Format - Private Accepted File - Barclays.XML

Local Instrument Code - CORE Header Level Creditor ID Format - Private Supplementary Creditor ID Level - Transaction (DrctDbtTxInf) Supplementary Creditor ID Format - Private Accepted File - BOI.XML

3. M E M B E R S H I P M A N A G E M E N T A N D N E W M E M B E R W I Z A R D V A L I D A T I O N After successfully setting up Legend for use with the new codes you will notice a new option on the Direct Debit capture page, within the New Member Wizard called Show IBAN. Legend currently requires you to capture valid Direct Debit details along side the IBAN and BIC codes. This is so that Direct Debit files can continue being submitted using the current processes until February 2014. Customers can however start capturing IBAN and BIC numbers well ahead of the switch over.

To capture IBAN and BIC numbers for existing customers, edit the memb ers record in Membership Management and toggle between the Account No / Sort code and the IBAN / BIC number fields. You can then capture the data accordingly. The SEPA reference numbers do update for a new DD mandate. For example, should a member lapse or be reactivated, the member will receive a new unique reference number. To enable this functionality, ensure that the functionality for unique reference numbers in the Legend Control Panel > Global Settings > Payments Tab > Enable unique BACS reference numbers. The SEPA codes are one of: FIRST RECUR SUSP CANC All members being collected will go against code FIRST for the very first SEPA collection. These codes are currently not visibale in Membership Management but this will be included in a future release. 4. H O W T O R E P O R T O N IB A N A N D B IC C O D E S Open Legend Reports > Member Billing/Payment > Member Accounts > Member Accounts > Active Accounts Highlight the report > Select Customize Columns from the Tools menu on the left side of the application > Add IBAN and BIC > Click ok and then run the report as you would any other.

The report will now show all active accounts and will include the IBAN and BIC numbers.

5. R U N N I N G Y O U R S EP A D I R E C T D E B I T a. Preparation Ensure you have all members IBAN and BIC numbers. To verify, run the Legend Active Accounts report (as described above) and include IBAN and BIC numbers as columns. Check that all DD members have IBAN and BIC numbers. In the Fee Collections application, Click > Start New Collection > Select the Collection Type as Fee Collection by SEPA (EU) and Input the rest of the collection details. Then select > New and then click > Prepare. The Totals tab on the screen below will show the details of what will be included in your DD run.

There is also an Audit tab which shows a record of what was done by the Legend user. You can review the collection by club and double click through to a list of members. The data can also be filtered by using the filter options on the columns. Click on More Details to review the members details in Membership Management. Once you have updated any members records and you would like to pull a new extract, click > Start a New Collection again. At any point you are able to export the data to Excel also by clicking on the Export Grid button on the right hand side. Running a Collection In the Fee Collection module, Click Create File. An XML file is produced. This needs to be saved to your local BACS drive. Once the file has been submitted to your bank, you will need to Complete the run. Clicking the Complete button raises the CHARGES and PAYMENTS in the same step. Reporting All of the BACS reports are now available from the Fee Collections module as any collection can be exported to Excel. Data can then be reviewed by filtering in Excel. You are also able to open the SEPA DD XML collection file in Excel. Reviewing a Previous Collection To review a past collection at any time, simply select Search Collections from the right hand menu. Any collection can be reviewed by club or member and exported to Excel if so required.

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6. R E T U R N E D A D V I C E S To process a SEPA Returned Advices file, follow these steps: In the Fee Collections application, Click > Returned Advices > Import File. Browse to the file which you have downloaded and saved on your local computer. Then select > Import File and then click > Process File.

Legend will then raise charges and events based on the specific rejection codes. The system will raise actions based on Legends default settings. Should you wish to raise a charge against members for the rejection, then please contact Legend Support as this will need to be configured into your system for you. A list of rejection codes and Legend default actions are as follows: Code AC01 AG02 BE01 FF01 MD01 MD02 MS02 MS03 RC01 SL01 DNOR CNOR AC04 AC06 AG01 Description Account identified incorrect (IBAN) Operation/trans code incorrect - Invalid File format Debtors name doesn't match with acc holders name Operation/trans code incorrect - Invalid File format No Mandate Mandate missing or incorrect Refusal by the Debtor Reason not specified Bank identifier incorrect (invalid BIC) Specific Service offered by the Debtor Bank Debtor bank is not registered under this BIC in the CSM Creditor bank is not registered under this BIC in the CSM Account Closed Account Blocked (for DD by the Debtor) DD forbidden on account for regulatory reasons Legend Actions Member event raised Member Status remains Active Raise cycle fee charge Raise bank charge (optional) Change mandate to Suspended

AM04

Insufficient Funds

Member event raised Member Status remains Active Raise cycle fee charge Raise bank charge (optional) Change mandate to Cancelled Member event raised Member Status remains Active Do not raise cycle fee charge Raise bank charge (optional) Mandate remains on Recurring

AM05

Duplicate Collection

MD07

Debtor Deceased

Represent (available in future Legend release) Member event raised Member Status remains Active Raise cycle fee charge Raise bank charge (optional) Mandate remains on Recurring Member event raised Member Status changed to Cancelled Raise cycle fee charge Raise bank charge (optional) Change mandate to Cancelled

A list of SEPA SDD R messages and their possible reasons can also be found at http://www.ipso.ie/section/SEPARMessagesGuidanceforCreditors If the SEPA code is updated to either SUSP or CANC, the mandate will not be picked up in future collections until the issue is resolved. To reset the member for collection create a new mandate by enter a new IBAN / BIC number.