Glossary

SCORE

Standardised Corporate Environment (SCORE) is the model for enabling non-financial corporations to access through SWIFT. Corporates registered for SCORE can interact with any banks on SWIFT that are also registered.

SCT

Please see SEPA Credit Transfer

SDD

Please see SEPA Direct Debit

SEPA

The Single Euro Payments Area (SEPA) is the European Union (EU) payments integration initiative which was completed on 1st February 2014. SEPA creates an efficient, standardised electronic environment for all Euro payments and collections through harmonised payment schemes and frameworks. The key SEPA initiatives include: integrating existing national credit transfers and direct debit schemes into a single set of payment schemes (SEPA Credit Transfer and SEPA Direct Debit) and creating a SEPA for cards, aimed at ensuring a consistent customer experience when making or accepting payments with cards throughout the Euro area. Finally, the SEPA programme promotes the use of electronic payment instruments, while reducing the cost of wholesale cash distribution. SEPA currently consists of the 27 EU Member States plus Iceland, Norway, Liechtenstein, Switzerland and Monaco.

SEPA Credit Transfer

SEPA Credit Transfer (SCT) is a Euro-denominated payment of any value that operates according to the SCT scheme. The SCT was launched in 2008 and became mandatory in February 2014. All credit transfers under the SCT scheme have the same conditions whether they are paid to a counterparty within the same SEPA member country or another member country. SCT instructions need to be exchanged using ISO 20022 XML formats (from 2016 for non-Eurozone countries) and remittance data must include an IBAN and currently a BIC, but this requirement may change in the future.

SEPA Direct Debit

SEPA Credit Transfer (SDD) is a Euro-denominated direct debit of any value that operates according to the SDD Core or SDD B2B schemes. Since February 2014, all domestic direct debit schemes in the 32 countries that comprise the Single Euro Payments Area (SEPA) need to take the form of SDD. All direct debits under either the SDD Core or B2B schemes have the same conditions whether they are paid to a counterparty within the same SEPA member country or another member country.

SDD instructions need to be exchanged using ISO 20022 XML formats (from 2016 for non-Eurozone countries) and remittance data must include an IBAN and currently a BIC, but this requirement may change in the future.

SDDs enable both single (one-off) or recurring direct debit collections with no limit on the amount. Payers have an 8 week right to refund for authorised direct debit collections and 13 months for unauthorised direct debit collections.

SEPA mandates are standardised documents for authorising direct debits, and are maintained by the creditor (as opposed to by the debtor''s bank as is typically the case for domestic direct debit schemes). Valid direct debit mandates obtained by the creditor before migration to the SDD core scheme will remain in force for SDD Core collections (the SDD B2B scheme does not replace existing direct debit schemes and therefore requires new mandates).

Stamp Duty

A tax that is applied to the purchase of shares and other assets, including real estate. Each country has specific rules relating to the applicability and rate of stamp duty.

Standby Letter of Credit

The Standby Letter of Credit (SBLC) is a bank guarantee, payable on first demand against presentation of specified documents. The SBLC simply requires a declaration from the beneficiary stating the applicant’s default by virtue of the underlying transaction. Like any other bank guarantee, the Standby Letter of Credit may have multiple purposes: tender guarantee, advance payment guarantee, performance guarantee, retention money guarantee or payment guarantee.

Standing Order

An instruction given by a payer to its bank to pay a set amount of cash at regular intervals to a beneficiary''s account, and may also be known as a banker''s order. Standing orders are typically used to pay mortgages, insurance premiums or other fixed regular payments. Standing orders are used in countries such as Bulgaria, Germany, Ireland, India, Netherlands, Russia and UK.

Structured Total Pool Purchase Receivables Programme

Purchase, by the bank, of a portfolio of receivables on a non-recourse basis. The bank will purchase the receivables due from a diversified portfolio of debtors on a silent basis. The bank may apply a statistical approach to debtors and fund up to 100% of the face-value of the invoices. The bank will analyse the portfolio as a whole taking into account the historical losses, amounts of write-offs, provisions & late payments.

SWIFT

SWIFT (Society for Worldwide Interbank Financial Telecommunications) is a co-operative organization of banks that operates a secure network for the exchange of financial messages, including payments, between financial institutions. Access to SWIFT is available to non-financial corporations through the Standardised Corporate Environment (SCORE) or now less commonly by joining individual MA-CUGs (Member-Administered Closed User Groups). Corporates registered for SCORE can interact with any banks on SWIFT that are also registered.

SWIFT Trade for Corporates

SWIFT Trade for Corporates allows corporates to exchange trade finance data with its banks using the FIN/ FileAct SWIFT messaging format and the SWIFT network in a highly secure and standardised manner.