What is a SEPA payment?

What is SEPA? 

SEPA (Single Euro Payments Area) is a payment system used only for cashless euro payments, available in EU member countries and a few other countries (Switzerland, Norway and Liechtenstein).

With SEPA, euro payments across Europe are processed faster and easier. 😉

What is a SEPA payment?

A SEPA payment must meet the following criteria:

❶⠀be made in euro (credit transfer, direct debit, card payments);

❷⠀to be done in the normal way;

❸⠀to be ordered on an SHA commission basis (i.e. the fees are borne by each individual transaction participant);

In other words, the person sending the money will pay the sending fee and the person receiving the money will pay the collection fee.

❹⠀to be made to a bank in a SEPA country (I explained above which ones) 😅

More specifically, SEPA refers to money transfers from one bank account opened in euro to another bank account opened in euro between countries in the SEPA area.  

Are fees charged for SEPA payments?

Payments made via SEPA will be settled through a special system, without having to go through and be commissioned by other correspondence banks. 

SEPA allows transactions in euro and there are little or no transfer fees. A fee may be charged on payment (deposit), which must be the same as for domestic payments.  

Who can make SEPA payments? 

SEPA payments can be made by both individuals and companies based in several European countries 😉