Q&A Standardization of Payment Transactions in Europe and Switzerland

Transcription

1 Standardization of Payment Transactions in Europe and Switzerland Version: November 2016

2 Standardization of Payment Transactions in Europe and Switzerland General Introduction Europe converted national payment transaction processes to SEPA (Single Euro Payments Area) and thus to the new ISO standard as of February 1, 2014 with a transition period of six months ending on August 1, Switzerland, and therefore Credit Suisse, will also further standardize its national payment transactions accordingly by The standardization in Europe and the standardization efforts under way in Switzerland have led us to recommend that our clients determine whether they are affected. To ensure your transition to the new standard is as smooth as possible, Credit Suisse will be retaining its current payment transaction methods and systems until at least This document lists potential client questions on the topics relating to standardization of payment transactions and ISO 20022, along with answers based on our current knowledge. This document will be updated to ensure that it reflects current knowledge and client needs to the fullest extent possible. The questions and answers are organized into the following topic groups: 1. Payment Transactions Basic Information 3 2. Summary of Market Developments Standardization of Payment Transactions in Europe Background Implications for Switzerland Impact on corporate clients with European payment transactions Formats Harmonization of Payment Transactions in Switzerland Background Impact on the Swiss market Impact on Swiss corporate clients Formats 7 3. Credit Suisse System General Information XML under ISO Credit Suisse Services Credit Suisse SEPA Services 8 4. What Clients Need to Do Immediate Need for Action by Corporate Clients Medium-Term Changes for Early Client Adoption 9 5. Support from Credit Suisse 10 2/11

3 1. Payment Transactions Basic Information Which parties are involved in transferring funds in a payment order? A client (payer = PR) instructs Credit Suisse (bank of payer) to make a payment. Credit Suisse sends the payment via a clearing system/correspondent bank to the payee (= PE). The PE s bank credits its client (PE) for the payment amount. What channels can clients use at Credit Suisse to initiate a payment? Credit Suisse offers the client a number of electronic channels to enter orders or transfer funds (Direct Net, Direct Link, Direct Exchange). There are also paper payment forms and postal orders that do not use forms. During a personal consultation or phone call, clients can also initiate a payment order via their RMs. What information is needed for a payment order? See in particular Section 1 of the Credit Suisse payment transaction conditions. Outgoing payments and incoming payments Outgoing payments are generally initiated by Credit Suisse clients with a payment order and are booked as a debit to the client s respective account. Incoming payments are credited to our clients. Credit Suisse supports its clients using various products (e.g. debit procedures) to actively trigger incoming payments. What is an IBAN account number? IBAN is the abbreviation for International Bank Account Number and is an international, standardized account number format. In Switzerland, the IBAN is composed of 21 characters. Apart from the specific account number, it contains a country code and information about the originating bank, along with a double-digit verification and check code as a security element and to prevent erroneous entries. Excerpt from the current Credit Suisse product range for outgoing payments The multi-payment order is a standardized order form that allows the payer to initiate payments in all currencies by submitting payment slips to Credit Suisse. The standing order is suitable for all clients that make regular payments with the same payment amount and payee (e.g. rental payments). Payment orders in DTA format: Swiss banks offer their clients the standardized DTA format for submitting their payments via electronic channels. The DTA format was designed so that payments of different types (e.g. creditor payments) in CHF or foreign currencies can be transferred electronically in a single data file to the bank executing the payment. Excerpt from the current product range for incoming payments The BESR (bank payment slip with reference number) is based on the standard orange payment slip with reference number. It is suitable for all corporate clients who wish their incoming payments to be processed conveniently. There is a choice between receiving the details of incoming payments as a paper statement, an e-document, or an electronic credit file via Direct Net/Direct Link/Direct Exchange. With the direct debit procedure (LSV+/BDD or SEPA Direct Debit), the payer issues a one-time debit authorization for the collection of receivables directly from his or her account. Direct debit is suitable for medium and larger corporate clients that receive regular payments in CHF from their debtors. An electronic bill is a product that allows payees to generate paperless invoices for their debtors and to send them directly to the debtors online banking service. The payer can check the received e-bills directly in the online banking service and authorize payment. What is a BIC? BIC is the abbreviation for Business Identifier Code, also known as a SWIFT code. Thus, for payment transactions in the SWIFT network, a clear identification format has been created for the financial institutions and companies involved. SWIFT assigns a BIC to every participant. Where can I find the IBAN and BIC for my house bank? For some time now, Credit Suisse and all other financial institutions have been printing account numbers using the IBAN format and the SWIFT address (BIC) on all account statements and/or transaction notifications. Please look at the header or footer. Both pieces of information are also listed on Credit Suisse debit cards. Where can I find my business partners IBAN and BIC? If you need to send a cash amount using a SEPA Credit Transfer to another payment account, for example when paying a bill, the payee will provide you with the required account information (IBAN and BIC). 3/11

4 2. Summary of Market Developments 2.1. Standardization of Payment Transactions in Europe Background What is SEPA and what are the SEPA procedures? SEPA stands for Single Euro Payment Area. The SEPA procedure has three main objectives in the EU and EEA member countries: Standardization of the procedures for funds transfer and debit procedures in euros. Use of a uniform technical standard (ISO 20022). Equal treatment of national and cross-border payments within EU and EEA countries. What countries are affected by the standardization of payment transactions in Europe? Thirty-three European countries are affected. This includes the 28 EU countries, the three EEA countries (Norway, Iceland, Liechtenstein), and Switzerland and Monaco. The 28 EU countries include the 18 euro countries (Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain) along with the other ten EU countries that have their own national currency (Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Lithuania, Poland, Romania, Sweden, and the United Kingdom). Is the standardization of payment transactions in Europe mandatory (SEPA regulation)? Yes. As of 2008/9, the SEPA regulation introduced the standardization of cross-border euro payments in the EU/EEA countries. The law (SEPA regulation 260/2012) mandates that the national payment transaction procedures that have developed over time for national euro payments be replaced. Content of the SEPA regulation 260/2012 (legal requirement for standardization of payment transactions in Europe) The legal requirements include the following main points: Bank access to SEPA Credit Transfer and SEPA Direct Debit. Deadlines for migration of national payment transaction systems to SEPA Credit Transfer and Direct Debit: February 1, 2014 with an implementation period of six months or October 31, 2016 (for EU and EEA countries without the euro). Mandatory use of IBAN by banks. Mandatory use of ISO (XML) by banks. Mandatory use of IBAN by clients. Use of ISO (XML) for corporate clients when sending bundled payments. Submission of SEPA payments by clients with only IBAN and without BIC: February 2014 for national payments and February 2016 for cross-border payments. Implementation of measures for stricter consumer protection, e.g. in connection with SEPA Direct Debit. Who defines the SEPA regulation and/or other SEPA rules? The SEPA regulation was passed by the European Union (EU). The rules for SEPA Credit Transfer and Direct Debit are defined by the European Payments Council (EPC). Where can I find the SEPA regulation and other rules on SEPA? You can find the SEPA regulation on the European Union website ( The SEPA rules can be found on the European Payments Council website ( Are payment transaction fees regulated in Europe as well? Yes. EU regulation 924/2009 stipulates that cross-border transfers and debit procedures from one EU or EEA country to another cannot be more expensive than payments within a single EU or EEA country Implications for Switzerland Are Swiss banks participating in SEPA and SEPA Credit Transfer and Direct Debit? Yes. Although Switzerland is neither an EU nor an EEA country, the Swiss banks can participate as full SEPA members for SEPA Credit Transfer and Direct Debit. Does the SEPA regulation (legal requirement for standardization of payment transactions in Europe) also apply to Switzerland? No. The SEPA regulation applies only to EU and EEA countries. Does the SEPA regulation (legal requirement for standardization of payment transactions in Europe) affect Swiss banks (even if it doesn t apply to Switzerland)? Yes. Because some main points of the SEPA regulation are being applied to the rules for SEPA Credit Transfer and Direct Debit, they also apply indirectly to Swiss banks that participate in SEPA. This affects SEPA Credit Transfer and Direct Debit in euros from Switzerland to Europe and vice versa. In particular, the Swiss banks participating in SEPA must ensure the following by October 31, 2016 for these types of payments: Use of ISO (XML) for payments between financial institutions. All financial institutions must ensure that corporate clients (with the exception of microenterprises) use ISO (XML) to submit bundled payments. Submission of SEPA payments by all clients (corporate and private clients) with only IBAN and without BIC. Directive authority for payers with regard to collections in basic debit procedures (e.g. limits on amounts and/or time frames, account blocks for SDD, black/white listing). Do the European fee regulations also apply to Switzerland? No. Because Switzerland is neither an EU nor an EEA country, the European fee regulations for SEPA Credit Transfer and Direct Debit do not apply to payments to or from Switzerland. Experience has shown that the majority of European banks still charge the same fees that the European banks charge for SEPA Credit Transfer and Direct Debit to or from Switzerland. A small number of banks charge higher fees for Swiss SEPA Credit Transfer and Direct Debit. 4/11

5 Did the fee situation change for SEPA Credit Transfer and Direct Debit to and from Switzerland? The price terms for EU/EEA countries still do not apply to SEPA Credit Transfer to and from Switzerland (as with Monaco). Nothing changed in this regard with the standardization of European payment transactions in February, or August 2014, respectively. Thus, European banks can still charge international payment fees for SEPA payments with Switzerland Impact on corporate clients with European payment transactions When does the IBAN account number format have to be applied for euro payments within Europe? Starting February 1, 2014 with an implementation period of six months, clients with European payment transactions (corporate and private clients) must use SEPA and thus only the IBAN instead of the proprietary account number. However, clients at a bank in an EU/EEA country could still use their account number and bank code for domestic payments until February 2016, provided that their payment service provider offers IBAN conversion. When are corporate clients obliged to use ISO (XML) for bundled payments in euros? Starting February 1, 2014 with an implementation period of six months, corporate clients must use ISO (XML) for electronic delivery of a SEPA Credit Transfer and Direct Debit file in euros (bundled payments). When are clients allowed to submit SEPA Credit Transfers and Direct Debits with an IBAN but without a BIC? Starting February 1, 2014, corporate and private clients can use just the IBAN without the BIC for national SEPA Credit Transfers and debit procedures in euros within the same EU or EEA country. Clients could not use the IBAN without the BIC for SEPA Credit Transfer and Direct Debit in euros from one EU/EEA country to another until February 1, How will non-regulated payments (such as USD or CHF payments in Germany or France, or euro payments to the US) be triggered? The electronic formats for foreign payments (such as DTAZV in Germany) remain as is. Consequently, files in this format can be sent to your bank using an electronic interface even after February 1, or August 1, 2014, respectively. There is no regulatory requirement to switch to alternative channels (such as an internet banking interface or forms) for foreign payments Formats Do some countries have variations on the new SEPA standard? While the European Payments Council (EPC) stipulates binding file formats for interbank payments in the Implementation Guidelines, the client-bank interface specifications (pain [payments initiation] message types) are recommendations only. For this reason, there will be no uniform file format for client orders in Europe. The possible variations range from 1:1 implementation of the EPC requirements to more or less flexible deviations from the EPC recommendations based on the ISO standards to individual formats unrelated to the ISO standard. For more information, consult your bank in Europe or the national bank s web page. Is CGI (Common Global Implementation) an alternative to implementing the country-specific variations of the new SEPA standard? Yes. CGI was created on the initiative of a number of larger companies for a multi-bank-capable and internationally harmonious version of an ISO based XML standard. Companies should use the same message structure for all payment notices to all banks so that they can access every payment system in the world. All key client-bank messages and account information are specified and described online at Does Credit Suisse offer the CGI standard to its clients? Yes. The plan for Credit Suisse was to accept and convert the CGI standard starting in September 2014, and to process it completely starting in How does SEPA generally compare to other technical standards? SWIFT FIN applications SWIFT messages are standard file formats for message exchange from the Society for Worldwide Interbank Financial Telecommunication (SWIFT). For the time being, the FIN message types (MT) from the SWIFT FIN application will remain available in addition to the new XML-based (MX) messages. SWIFT FileAct messages FileAct is a method of exchanging various files via the SWIFT network. However, the file format must first be agreed upon between the sender and recipient. SEPA format files can also be sent via FileAct. The pending standardization in Europe will not impact the existing SWIFT FileAct interface. EBICS data backup The Electronic Banking Internet Communication Standard (EBICS) is a multi-bank-capable security standard for transmitting payment transaction data online. Because the submission of SEPA payment orders is supported by EBICS, the chances are good that EBICS can establish itself as a European standard under the name European Banking Internet Communication Standard. How does SEPA compare to alternative payment methods such as PayPal? PayPal is an alternative payment method mainly for smaller amounts for online purchases from websites. PayPal, as a subsidiary of the ebay online platform, handles payment operations. The parties in a payment transaction are identified by their addresses; further identifying details (such as bank and account number) are known only to PayPal. Credit card charges, transfers, and some types of debit procedures allow clients to add liquidity to their PayPal account. 5/11

6 2.2. Harmonization of Payment Transactions in Switzerland Background Why are payment transactions being harmonized in Switzerland? The Swiss National Bank has decided to harmonize payment transactions primarily for the following reasons: Reduction in the large number of funds transfer and direct debit procedures. Use of a uniform technical standard (ISO 20022). Client demands for greater automation in processing vouchers and payment notifications. Basis for easier implementation of future regulatory requirements. How diverse are Swiss payment transaction procedures? Although the transaction volume is very low in Switzerland compared with large currency communities (such as US dollar, euro), two payment transaction systems (SIC and Postfinance) are in place. More than ten standards and formats are used, about ten procedures are supported, and seven different vouchers are in use. Why is the Swiss marketplace converting to the new ISO standard? The use of ISO based payment transaction messages offers the greatest range of options for sending larger amounts of data in a structured manner. For instance, new end-to-end references enable the automatic identification of a payment by senders and recipients, because they must be transmitted by all participating banks to the payer and payee in every case. Why is this a good time to migrate? The Swiss clearing system s technical platform needs to be upgraded. Introducing the uniform technical standard under ISO at the same time will set the course so that clients and banks are ready for the effects of the SEPA regulation applicable starting October Where can I find the regulations for future funds transfers under the Swiss standard? The Swiss recommendations for client-bank messages are published in the Business Rules and Implementation Guidelines and are available on the SIX website at Are the Swiss recommendations for funds transfer based on European regulations? Yes, they were based on the regulations for performing a SEPA Credit Transfer, as created by the European Payments Council (EPC) Impact on the Swiss market Is Switzerland phasing out the DTA format for payment orders? Yes, in future the Swiss DTA format will be taken off the market. While you can submit all payment orders in a DTA file format to Credit Suisse during the transition period, DTA will be replaced in future by messages using the ISO standard (XML). When will the Swiss DTA format be replaced by XML? During a transition period starting 2016, the old and new formats can both be used in Switzerland. According to current information, the DTA format will no longer be supported by the Swiss market as of July 1, What will happen to the ISR/BESR format? The harmonization is coinciding with the postal standard for incoming ISR or BESR payments (BESR = bank payment slip with reference number). The harmonization will eliminate the orange payment slips and change the system of reference numbers and the incoming payment file format. Will there still be BESR files with details on incoming payments in the future? Yes. For Swiss payees, there will continue to be an XML credit notice-based (camt.54) BESR file for automatic coordination of incoming payments. What is a quick response code (QR code)? The QR code consists of black and white dots in the shape of a square. Data can be viewed using this method. Data is saved multiple times in a QR code, so even if up to 30% is lost (e.g. due to smudging or damage) it can still be read. What will happen to the regular direct debit procedure? In order for all stakeholders to benefit from the convenience, the existing bank debit procedures (LSV+/BDD) and the Postfinance Debit Direct service will be replaced by the future Swiss Direct Debit scheme. How long will LSV+/BDD continue to exist? A final end date for the current formats has not yet been defined. As LSV+/BDD is technically based on the current ISR format for orange payment slips, it seems obvious that this format is going to be eliminated as well. When will the new direct debit procedure be rolled out? The new direct debit procedure will be available towards the end of How will the new direct debit procedure work? There will still be a direct debit procedure in both versions, with right of objection (similar to former LSV+) and without (similar to former BDD). The objective is to adapt the direct debit procedure to e-bills. Working groups have been appointed to define the specifications. More information can be expected starting mid Impact on Swiss corporate clients When does the IBAN have to be used for payments in Switzerland? Starting July 1, 2020, financial services institutions in Switzerland will no longer be able to process Swiss payment transfers or debits without an IBAN. Credit Suisse therefore recommends that its clients start using the IBAN as the account number for all payments now. 6/11

7 When will the exclusive use of IBAN make euro payments from Switzerland to Europe easier? Starting October 31, 2016, all European payments in euros will use only the IBAN account number to identify the account and bank details of a payee. Can the IBAN be used around the world as an account number? Yes, it will be treated like any other account number. However, in addition to the IBAN, international payment orders will still need information about the recipient s financial institution (such as the BIC). Do post office accounts also have an IBAN? Yes, there is an IBAN for every post office account. For conversion information, consult your house bank in Switzerland. What are the advantages of harmonization for Swiss clients? Clear account numbers reduce typographical errors and the need for follow-up questions or rejections by the bank, thereby making funds available more quickly and at a reduced fee. Consistent client references mean higher automation when the payee posts incoming payments in its accounting software. Standardized reports and status messages regarding payment processing expand your options to use cash management functions even for standard software solutions. Once the payment transaction landscape is harmonized, all stakeholders in the Swiss market will benefit from low-cost payment transaction solutions. How will ISO be implemented in Switzerland? Switzerland has been defining its own country-specific standard for XML messages between clients and banks as well as between the banks. However, the standard is largely based on the specifications for SEPA Credit Transfer and Direct Debit. Who defines the Swiss standard for XML payment transaction messages? Expert committees and decision-making bodies, comprised of representatives from the Swiss financial center, define the clientbank messages under ISO in Switzerland. Are there different versions of the Swiss standard for payment transaction messages? Yes, due to periodic updates to the Swiss standard for funds transfers, direct debits, and account information, current and prior versions will apply on the Swiss market. According to the latest information, the periodic updates will be made annually Formats What is ISO 20022? The International Standards Organization has created UNIFI, an XML-based specification for financial transaction message types (ISO 20022). The ISO standard creates new, uniform formats for exchanging financial messages between clients and banks and between banks. XML stands for extensible Markup Language. Messages are defined in a three-phase structure (A/B/C level). Here is an example of a pain.001 message Credit Transfer : A level (message level), B level (payer side), C level (payee side). What types of messages are needed for transactions between clients and banks? Payments initiation messages (pain) are those between the client and the financial institution. In accordance with ISO 20022, pain.001 is used for payment orders, pain.002 is used for status reports, and pain.008 is used for direct debit orders. Under ISO 20022, cash management messages (camt) are used between clients and financial institutions and between financial institutions. What message type is used between financial institutions? Payments clearing and settlement messages (pacs) under ISO are used solely for banks to send orders and status reports to one another. 7/11

8 3. Credit Suisse System 3.1. General Information How will Credit Suisse harmonize payment transactions? Credit Suisse is taking advantage of the market developments to tailor its payment infrastructure optimally to client needs. Old applications will be replaced by new, ISO compatible systems. The project work will be completed in time for the harmonization of the Swiss market in What goals is Credit Suisse pursuing with the upgrades to the payment transaction infrastructure? Credit Suisse will ensure that: The requirements of the Swiss market are implemented on time in a modern, stable, and efficient payment transaction environment. The operations of the existing payment transaction products are maintained reliably and without disruption until they are phased out. Electronic channels support the new formats based on ISO for communications between the client and the bank. The switch from old to new methods is communicated properly to clients, accompanied by client support specialists, and implemented reliably XML under ISO Credit Suisse Services Can Credit Suisse already receive XML messages under ISO 20022? Yes, using the existing Direct Link and Direct Exchange channels, corporate clients can already transfer funds under the Swiss standard and SEPA debit procedures with pain messages. Can clients already receive XML messages under ISO from Credit Suisse? Yes, using the existing Direct Link and Direct Exchange channels, clients can receive messages on the SEPA direct debit transactions with pain.002 messages. Can Credit Suisse also receive European XML messages under ISO 20022? In light of the standardization in Europe, Credit Suisse offers an ISO client platform so that XML messages under ISO can be sent in other national versions depending on client needs. Does Credit Suisse s ISO client platform offer client capability? Yes, the ISO client platform is client-capable and allows for a comprehensive range of formats, not only for single-banking clients of Credit Suisse but also for multi-bank clients. What message types will the ISO client platform support? In addition to the new ISO messages on payment initiation (pain.001/008), electronic account information (camt.052/053), and payment status reports (pain.002), the following formats will also be supported: SWIFT Payment Messages (MT101, MT103). SWIFT Account Reporting Messages (MT940, MT942) Credit Suisse SEPA Services Does Credit Suisse already offer SEPA Credit Transfer? Yes, you can already use SEPA Credit Transfer to make payments to Europe. You must only meet the requirements for a SEPA payment, by: Initiating a euro funds transfer. Using the IBAN account numbers in your order. Using the BIC (SWIFT code) for the payee s bank. Selecting the SHA ( split fees ) fee code. Not adding transaction instructions such as express or special payment routes. How can clients issue SEPA Credit Transfer orders? Initiate your payment either electronically as usual via online banking, Direct Link, or Direct Exchange, or as a paper order. When will the payee receive my SEPA Credit Transfer? Since January 1, 2012, SEPA Credit Transfer has required that the credit be received by the payee the day after the charge was debited from the payer regardless of whether it was processed nationally or cross-border within Europe. However, cut-off times of the financial institutions for delivering SEPA payments must also be complied with. Does Credit Suisse already offer SEPA Core Direct Debit? Yes, you can already submit SEPA Core Direct Debit orders in euros to Credit Suisse. How can a client submit a SEPA Direct Debit order? These orders are submitted via your Direct Link or Direct Exchange interface to Credit Suisse. The status report messages on the orders will of course be sent back via the same channel. Does Credit Suisse have to adjust its SEPA services due to SEPA regulations? No. The current SEPA offer for Credit Transfer and Direct Debit is in full accordance with the European standards, which are mandatory for all European banks for euro payments within the EU/EEA countries starting February 1, 2014 with an implementation period of six months. Can SEPA Credit Transfer and Direct Debit be issued in currencies other than the euro? No. SEPA payments can be issued only in euros. Payments in other European currencies are still possible only via foreign funds transfer. Does Credit Suisse also transfer large sums in euros using SEPA? For large sums in euros with IBAN and BIC to an EU/EEA country, Credit Suisse recommends processing using a real-time clearing system. 8/11

9 4. What Clients Need to Do 4.1. Immediate Need for Action by Corporate Clients What do I need to do as a Swiss client (corporate client or private client) of Credit Suisse and/or other Swiss banks? There is no need for direct action by users of Swiss payment transaction products. As a client, can I still use the existing payment transaction products? Yes. Naturally, Credit Suisse s payment transaction services (such as DTA, LSV+/BDD, BESR, etc.) remain available for funds transfer and direct debits. The current SEPA services of Credit Suisse also conform to the standards that are mandatory for euro payments in Europe. How can corporate clients best prepare for the later harmonization of payment transactions in Switzerland? There are some obvious changes for which you can prepare. You should analyze how and for which functions you depend on software solutions and/or electronic channels to handle payment transactions. Take into account time and costs when planning any activities, and earmark the budget for next year or the following years in time. If you communicate electronically with Credit Suisse and/or other Swiss banks, the interface must be able to exchange messages in future using old and new, or just new, message types. If you manage debtors and/or creditors in a standard software program, you should consult with your software provider about the next steps in updating the current solution. If you process your debtors and/or creditors in an individual ERP system, your IT department can obtain advance information from the SIX website about the upcoming changes and dates ( Clients may need to analyze the quality of their partner and client database with regard to IBAN. Starting July 1, 2020, banks in Switzerland will no longer be able to process Swiss payment transactions without an IBAN. Using the IBAN account number is already strongly recommended. Phasing out proprietary formats wherever possible is therefore a very good idea. If applicable, manage your stock of forms (such as blank form templates) to prepare for the new vouchers in Keep in mind that your hardware (such as readers for payment slips, printers) may be affected by the new vouchers. As a Swiss corporate client from a European company and/or with bank accounts at EU/EEA banks, what do I need to do? If your company uses only the Swiss payment transaction products and the current SEPA services from Credit Suisse in spite of international organization, you do not need to take direct action. There are helpful preparations with regard to later changes for payment transactions in Switzerland (see question What do I need to do as a Swiss client (corporate client or private client) of Credit Suisse and/or other Swiss banks? ) If your company uses Swiss payment transaction products and services from other EU/EEA banks for funds transfers and/ or direct debits, there is a need for direct action due to the EU regulation and the prescribed deadlines (August 2014 or October 2016, respectively). For further details, please contact your foreign bank. What can Credit Suisse offer if an international company can no longer use the Swiss-based IT solutions for payment transactions after August 2014? We will be happy to advise on the Credit Suisse services for the new ISO client platform. Your relationship manager can provide referrals to the appropriate specialists for further information Medium-Term Changes for Early Client Adoption As a corporate client, am I affected by the software changes? Yes, if you depend on software solutions and/or electronic channels to handle payment transactions. You must use up-todate software solutions that can transmit, process, and archive new and old formats or only the new formats in XML under ISO As a corporate client, do I really need to know the technical details of ISO 20022? No, your accounting software vendor or IT provider will ensure the implementation of the XML-based programming under ISO A release update will be used to deliver the upgrades to your PC/IT system. What will change with ISO compared to the current standards and formats? The launch of ISO will greatly change the electronic payment order structure. A certain amount of clarity in the old payment messages, which contained limited data and were very structured, will be lost. However, a large number of new features will be offered (such as SAP references, end-to-end client references, etc.) that can be included in the new messages. As a corporate client, when can I upgrade my software solutions? Many software partners already offer solutions that work with the new XML messages and the old formats. Ask your software partner and your bank if you can already upgrade. How is my client and partner data affected by the IBAN requirement? The IBAN account number will be required for fund transfer and direct debit orders in Switzerland and Europe. To ensure that your orders are processed seamlessly in future, your best option is to include the IBAN in your partner and client databases, your standing orders, and your payment templates. 9/11

10 From when is it mandatory to use the IBAN? For euro payments to Europe, the IBAN must have been contained in the order with effect from February 1, 2014 with an implementation period of six months. For payments in Switzerland, the IBAN is already expected. Banks must use it by July 1, 2020 at the latest. How is my client and partner data affected by the BIC (SWIFT code) requirement? BIC codes (the SWIFT address of a financial institution) will replace the national bank codes in Europe and internationally. Check your partner and client databases, your standing orders, and your payment templates in this regard. The BIC will not replace the existing clearing numbers for payments in Switzerland. Until when will the use of the BIC be mandatory? Starting February 1, 2014, the EU/EEA countries do not need to include the BIC for national euro payments via SEPA. However, the BIC is still mandatory from February 1, 2014 for cross-border payments in euros to Europe. The BIC cannot be omitted for cross-border payments in euros via SEPA until February 1, The BIC will remain mandatory for all other international payments. Do I already have to make changes to my existing DTA, LSV+/BDD solutions? No, apart from consistent use of IBAN and BIC, no other changes are needed. 10/11

11 5. Support from Credit Suisse Do you have questions about our recommendations on the standardization of payment transactions in the EU/EEA and Switzerland? Your relationship manager or support office will be glad to assist you in cooperation with our experts. Where can I find up-to-date information about market developments and their effect on clients? Please visit our website at: credit-suisse.com/zvmigration. We will use this site to provide you with updated information on an ongoing basis. Activate the news ticker service today and we will inform you in an active and timely manner of any news via . Your Contacts You can receive support and personal advice by calling one of the following numbers: Private clients: (Monday Friday 8:00 a.m. to 8:00 p.m.) Corporate clients: (Monday Friday 7:30 a.m. to 5:30 p.m.) For further information please visit PaymentStandards.CH. 1 Telephone conversations may be recorded CREDIT SUISSE (Switzerland) Ltd. P.O. Box CH-8070 Zurich credit-suisse.com/zvmigration The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter CS ) with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. Copyright 2016 Credit Suisse Group AG and/or its affiliates. All rights reserved. SNSC /11