SEPA
Single Euro Payments Area
- What it is
- A single euro payments area within Europe
- What it gives
- Euro transfers under the same rules and usually cheaper than SWIFT
- Currency
- Euro only — other currencies use SWIFT
- Timelines
- A normal transfer usually takes 1 business day; an instant one, seconds
- What is required
- The recipient’s IBAN, sometimes the BIC
In plain words
SEPA (Single Euro Payments Area) is a single area for payments in euro. Put simply: within this area, transferring euro from one country to another works as simply and cheaply as a payment within your own country. It works only for euro — for dollars, pounds and other currencies the usual SWIFT is used.
The area includes EU and EEA countries as well as a number of states beyond them. The recipient’s IBAN is enough for a transfer; some banks also ask for the BIC. A normal transfer (SEPA Credit Transfer) arrives the next business day in most cases, and an instant one (SEPA Instant) in seconds, including at weekends.
For clients obtaining residence or citizenship in Europe, SEPA is the main channel for everyday settlements: rent, bills, lawyers’ fees, state fees in euro. At the same time, large payments within SEPA go through the same compliance as any other: the network’s speed does not remove the bank’s questions about the source of funds.
When you will encounter SEPA
What you need to know about SEPA
- Euro only
- Usually cheaper than SWIFT
- A fee like a domestic payment
- The recipient’s IBAN
- Sometimes the BIC
- The account holder’s name
- A normal transfer
- An instant transfer
- Direct debit
- Other currencies — through SWIFT
- Compliance still applies
- Limits depend on the bank
How a SEPA payment works
- 01Take the recipient’s IBAN
- 02State the payment reference
- 03The bank checks the payment
- 04Credited in euro
- 05Transaction confirmed
What you need to know
- SEPA works only with euro
- A normal transfer usually takes 1 business day
- An instant transfer takes seconds
- Fees are usually lower than via SWIFT
- Large sums still go through compliance
Common mistakes
- Trying to send a currency other than euro via SEPA
- Assuming SEPA removes the bank’s checks
- Not stating the payment reference for an invoice
- Confusing an instant transfer with a normal one on timing
- Sending a large sum without supporting documents
What this means for a BRIDGES client
We help set up payment logistics for your programme: where to keep a euro account, which payments to make via SEPA and which via SWIFT. This saves on fees and removes most delays with regular expenses.
Frequently asked questions
01 /What is SEPA, in plain words?
It is a single area for payments in euro: a transfer between countries in the area goes through on the same rules and at about the same price as a domestic payment.
02 /Can dollars be sent via SEPA?
No. SEPA works only with euro. For other currencies an ordinary international SWIFT transfer is used.
03 /How long does a SEPA transfer take?
A normal transfer usually arrives the next business day. An instant one takes seconds, including at weekends, if both banks support it.
04 /Is a BIC needed for SEPA?
The IBAN is often enough, but some banks still ask for the BIC. Go by your bank’s form.
05 /Does the bank check payments within SEPA?
Yes. Compliance does not disappear: for large or unusual transactions the bank may ask for the basis of the payment and the source of funds.
06 /Which countries are in SEPA?
EU and EEA countries, as well as a number of states beyond them. The current list is published by the European Payments Council.
See also
Read next
This material has undergone editorial review by BRIDGES.
Moving to Europe?
We will help open a euro account and set up your payments — without unnecessary fees or delays.