SEPA Transfer: What It Is and Why It’s Important

There’s a big chance you’ve heard of SEPA transfers in passing, but what does it stand for? SEPA transfers are an effortless way to send money within the European Union (EU). It is one of the safest, quickest, and cheapest ways to send money within the Eurozone. 

This post unpacks everything you need to know about SEPA transfer, including what it is and why it’s important. Let’s get right into it. 

What Are SEPA Transfers?

SEPA is an acronym that stands for Single Euro Payments Area. Essentially, SEPA is an integrated payment system that allows bank account holders in the EU and the UK to carry out cross-border transactions from one European bank account to another. 

SEPA was introduced in 2010 to simplify the previously complex business of sending money from one European country to another. Now, SEPA constitutes the EU’s very own payment system and works just like the usual domestic bank transfers.

Which Countries Are Included in the SEPA?

Currently, there are 36 SEPA member states and they are:

• 27 countries from the European Union including Spain, France, Italy, Germany, and so on.
• 4 countries from the European Free Trade Association (Liechtenstein, Norway, Iceland, and Switzerland).
• 4 microstates with special monetary arrangements with the EU (Vatican City, San Marino, Monaco, and Andora).
• The United Kingdom (UK).

You should keep in mind that SEPA bank transfers use the Euro as a primary currency. Nevertheless, each member state maintains its currency independently of the Euro. Additionally, all of the mentioned countries have their country-specific International Bank Account Number (IBAN) through which all bank transfers are routed. 

How Does a SEPA Bank Transfer Work?

There are 3 types of SEPA bank transfers, and they all offer distinct services. Let’s take a look at how the 3 types work:

1. SEPA Credit Transfer:

This is typically used for one-off transfers. It uses the IBAN of both the sender’s and the recipient’s bank account to move money from one account to the other. The recipient should receive their money within one business day after the payment was made once authorization is successful.

2. SEPA Instant Credit Transfer:

The SEPA Instant Credit Transfer was established in 2017 and is also referred to as the SEPA Instant Payment. As its name implies, the SEPA Instant Credit Transfer is all about speed. Once the sender confirms a SEPA Instant Credit Transfer, the funds can be available in the recipient’s account in less than 10 seconds. This is possible because SEPA Instant Payments use direct routing from the sender’s bank to the recipient’s bank without any intermediaries in the process. It is important to note that both the sender and recipient’s banks have to be registered as SEPA instant members to use the SEPA Instant Credit Transfer.

3. SEPA Direct Debit Transfer

The SEPA Direct Debit Transfer is essentially used for recurring payments unlike the SEPA Credit Transfer and SEPA Instant Credit Transfer. Examples of recurring payments include monthly rent, internet or electricity bills, water bills, or regular loan repayment installments. 

Like the SEPA Credit Transfer, the SEPA Direct Debit Transfer also requires the IBAN of both the sender and recipient’s bank. 

What is the Importance of SEPA Transfer?

SEPA transfers are essentially the cheapest, fastest, and safest way to send and receive money within the European Union. So, if you need to make cross-border transactions amongst the countries mentioned previously, you don’t need to stress. SEPA transfers are just ideal for you. 

Changera and International Transfers

With Changera, you can send and receive money anywhere in the world at the tap of a button. When it comes to international transfers, Changera has got you covered in all aspects, especially when you talk about the best exchange rates and speed. Additionally, the multi-currency wallet feature on the app makes conversion across different currencies easier and simpler. Now, you can boycott the complex process of sending money abroad. Changera remains the fastest and most secure route for all your international transactions. 

There’s no need to delay. Download the Changera mobile app on Google Play Store or App Store today and start exploring the endless opportunities.