SEPA transfer: Your simple guide to sending euros across Europe
Sending money to someone in another country can feel like a hassle, but SEPA transfers make it much easier if you’re in Europe. SEPA stands for Single Euro Payments Area, and it’s designed to let you send euros across borders as easily as if you were sending money within your own country. Whether you’re paying a business or sending money to family, knowing how SEPA transfers work can save you both time and money. This guide will walk you through everything you need to know so you can handle SEPA transfers with confidence.
What is a SEPA transfer?
In simple terms, a SEPA transfer is a way to send euros from one European country to another without any extra fuss. It was created to make it as easy to send euros across borders as it is within your own country. SEPA covers 36 countries, including all the countries in the European Union and a few others, like Norway and Switzerland. The idea is to make sure that sending money to another country is as straightforward as paying someone down the street.
Why SEPA was created: A little background
Before SEPA came along, sending money to another country in Europe could be slow and costly. Every country had its own system, which made things complicated. SEPA was created by the European Union to fix this problem. Launched in 2008, SEPA aimed to make euro payments as simple and quick as possible, no matter where in Europe you’re sending or receiving money. Now, thanks to SEPA, sending euros across borders is just as easy as making a payment within your own country.
The three types of SEPA transfers: Which one fits your needs?
There are different types of SEPA transfers, and each one is designed for a specific purpose. Here’s how to decide which one is right for you:
SEPA credit transfer (SCT): The everyday choice
SEPA Credit Transfer (SCT) is the go-to option for most people when sending euros across Europe. It’s perfect for everyday transfers, whether you’re paying rent, sending money to family, or making a one-off payment. Typically, the money arrives the next business day, making it a reliable choice for most situations.
SEPA direct debit (SDD): The best for recurring payments
If you have regular payments to make, like a gym membership or utility bills, SEPA Direct Debit (SDD) is a great option. With SDD, you give a company permission to take money from your account on a set schedule. This means you don’t have to worry about missing a payment or remembering due dates—everything happens automatically.
SEPA instant credit transfer (SCT Inst): When you need speed
Sometimes, you need to send money right away, and that’s where SEPA Instant Credit Transfer (SCT Inst) comes in. With SCT Inst, the money arrives in the recipient’s account in just a few seconds, even on weekends. It’s the perfect solution for last-minute payments or any situation where time is of the essence.
How SEPA transfers work
SEPA transfers are designed to be simple. Here’s how it works:
Get the right details
You’ll need the recipient’s International Bank Account Number (IBAN) and sometimes the Bank Identifier Code (BIC). The IBAN makes sure the money goes to the right account, while the BIC tells the bank where to send it.
Start the transfer
You can do this online, through your bank’s app, or by visiting a branch. Just enter the details, confirm the amount, and send it off.
Processing the transfer
The bank takes it from there. Depending on the type of SEPA transfer you use, the money will arrive either the next business day or instantly.
What you need to know before sending a SEPA transfer
To make a SEPA transfer, here’s what you’ll need:
IBAN (International bank account number)
This is a unique code that points directly to the recipient’s bank account.
BIC (Bank identifier code)
This code helps identify the bank where the money is going, although it’s not always required.
Payment reference
This is where you can write a short note or reference number, which is handy if you’re paying a bill or sending money for a specific purpose.
Who handles your SEPA transfer?
SEPA transfers are processed by a network of banks and financial companies across Europe. These institutions follow strict rules set by the European Payments Council to make sure your money moves quickly and safely.
Along with traditional banks, you can also use online services and fintech companies that participate in SEPA, giving you plenty of options for sending euros across borders.
How long does a SEPA transfer take?
When you’re sending money with SEPA, how long it takes depends on the type of transfer you use.
Standard SEPA transfers
For standard SEPA Credit Transfers (SCT), the money usually arrives in the recipient’s account within one business day. This timing is perfect for routine payments where you don’t need the money to arrive immediately.
Instant SEPA transfers
If you need to move money fast, SEPA Instant Credit Transfers (SCT Inst) are the way to go. These transfers are processed in just a few seconds, 24/7, including weekends and holidays. However, not all banks offer instant transfers yet, so it’s a good idea to check if your bank supports this service.
SEPA transfer fees
One of the main benefits of SEPA transfers is their low cost. However, fees can vary based on the type of transfer and your bank.
Low or no fees for SEPA credit transfers (SCT)
Most banks treat these like domestic transfers, which often means no extra fees. However, some banks may charge a small fee, especially for cross-border transactions. Always check with your bank to know what to expect.
Minimal fees for SEPA instant credit transfers (SCT Inst)
Because of the convenience of instant transfers, some banks might charge a small fee. However, these fees are generally much lower than those of other international transfer methods.
Fee variations by bank and country
Fees can differ depending on which bank you use and which country you’re sending money to or from. It’s always smart to check the fee structure with your bank before making a transfer.
SEPA vs. SWIFT: Key differences
When you compare SEPA to other systems like SWIFT, SEPA often comes out on top, especially for transfers within Europe.
Speed
SEPA transfers, particularly SEPA Instant Credit Transfers, are much faster, with funds arriving within seconds or the next business day for standard transfers. SWIFT, on the other hand, can take several days.
Cost
SEPA transfers are usually low-cost or even free, whereas SWIFT transfers tend to be more expensive due to currency conversion fees and additional charges.
Regional focus
SEPA is designed specifically for euro transfers within Europe, making it the best choice for transactions within the European Economic Area (EEA). SWIFT is more global and supports multiple currencies but is less efficient for euro transfers within Europe.
Why SEPA is ideal for European transactions
SEPA is particularly advantageous for anyone dealing with euro transfers within the EEA. Here’s why:
Simplicity
SEPA makes cross-border euro transfers as easy as domestic ones, eliminating the hassle of currency conversion and complicated procedures.
Low fees
With SEPA, you can avoid the high costs often associated with other international transfer systems.
Speed
Whether it’s a standard or instant transfer, SEPA ensures your money moves quickly across Europe, making it ideal for both businesses and individuals.
How to ensure a safe SEPA transfer
Making a SEPA transfer is generally very safe, but here are some tips to make sure your money reaches the right place securely.
Double-check recipient details
Always double-check the recipient’s International Bank Account Number (IBAN) and Bank Identifier Code (BIC) before making the transfer. Mistakes here could send your money to the wrong account.
Keep a record of your transfer
Make sure to save the payment reference number or any other details provided by your bank. This will help you track the transfer if something goes wrong.
Use secure networks
Make your transfers through secure networks, like your home Wi-Fi, rather than public networks. This adds an extra layer of security to your transaction.
EU regulations
SEPA transfers are regulated by strict EU standards, which means they come with protections against fraud and errors, giving you extra peace of mind.
The bottom line: Why SEPA transfers are a smart choice
SEPA transfers are a convenient, low-cost way to send euros across Europe, making them a great option for both businesses and individuals. With fast processing times, minimal fees, and robust security measures, SEPA transfers simplify cross-border payments within the European Economic Area. Whether you’re making a one-time payment or handling regular transactions, SEPA offers a reliable and efficient solution for your euro transfer needs.
FAQs
What countries are SEPA?
SEPA includes 36 countries, mainly in Europe, including all EU members plus a few others like Norway, Switzerland, and Iceland.
Is SEPA the same as SWIFT?
No, SEPA is for euro transfers within Europe, usually cheaper and faster, while SWIFT is used worldwide for various currencies and often costs more and takes longer.
How much does a SEPA transfer cost?
SEPA transfers are often free or come with very low fees, depending on your bank. Some instant transfers might have a small charge.
Which is cheaper, SEPA or SWIFT?
SEPA is usually cheaper for euro transfers within Europe. SWIFT can be more expensive due to additional fees and currency conversion costs.
Is SEPA an MT103?
No, SEPA is a type of payment system, while MT103 is a message format used by SWIFT to confirm that a payment has been made.
