SEPA
Ideal for companies that operate in multiple European countries as they benefit from SEPA's standardised payment processes, SEPA reduces the complexity and costs associated with cross-border payments.
SEPA in detail
SEPA (Single Euro Payments Area) is the pan-European payment method used for non-urgent, usually high-volume and low-value EUR payments – similar to Bacs in the UK. SEPA allows you to receive or send SEPA Credit Transfers or to pay via SEPA Direct Debit.
Receive or send SEPA Credit Transfers
What are SEPA Credit Transfers?
SEPA Credit Transfers (SCT) is an efficient and cost-effective way to send and receive EUR electronically in the UK and across countries in the SEPA zone.
When to use SEPA Credit Transfers?
SCTs are a safe and affordable way to send funds between banks in the SEPA area. Transfers can only be made in EUR using standardised information such as the International Bank Account Number (IBAN) and Business Identifier Code (BIC), and they tend to clear within one working day.
Key features
- Fast Transfers: SCTs initiated before the Bank’s cut-off time are settled on the same day, otherwise, they’ll settle on the following business day.
- Full Payment Certainty: The payment amount is credited to the beneficiary account in full. In contrast to other international transfers, charges cannot be deducted from the transaction amount.
- Assurance: Standardised ISO 20022 formats reduce errors and transaction processing delays.
- Improved Visibility on Cash Flow: Guaranteed next-day full settlement, which supports improved reconciliation of receivable invoices, better liquidity management, and more effective financial planning.
- Easy and Flexible: A recall is possible within 13 months of a transaction settlement via an automated bank-to-bank communication protocol, subject to agreement by the beneficiary (and their bank). This process provides an additional layer of protection for both parties involved.
Pay via SEPA Direct Debit
What are SEPA Direct Debits (SEPA DD)?
SEPA Direct Debits enable third parties to collect payments directly from an EUR bank account.
When to use SEPA Direct Debits?
SEPA Direct Debit is a service that allows clients (Debtors) to authorise third parties (Creditors) to collect payments directly from their EUR bank account. Typically used by clients to manage payments for bills, subscriptions, and other recurring charges.
This service is only available on Euro denominated foreign currency accounts.
Key features
- EUR Payments: Facilitates payment processing/collection in euros across all 36 countries in the SEPA area.
- Transparent: Receive advanced notification from the Creditor outlining the amount and date of debits at least 14 calendar days in advance (unless otherwise agreed).
- Recurring Payments: Ideal for recurring transactions but can also be used for one-off payments.
- Cost-Effective: Low payment charges typically make it cheaper than paying via wire transfers.
- Reassurance: an exact payment date determined by the Creditor, so late payment penalties can be avoided.
- Flexibility and Control: Mandates must be pre-authorised and can be cancelled at any time giving customers control and security.