Globally registered and regulated
FCA registration number 900918. 3S Money Club Limited is registered in England and Wales, Company Number 8574246. Dubai Financial Services Authority (DFSA) with DFSA reference number F007004. CSSF registration number W00000016. 3S Money (Luxembourg) S.A. is registered in Luxembourg, R.C.S number B245715
What is the Single Euro Payments Area (SEPA)?
The Single Euro Payments Area is a framework created by the European Union (EU) to standardise payments within the Eurozone. SEPA aims to facilitate efficient and secure cross-border electronic payments in Euros and make them as simple as domestic transactions.
How does SEPA payment work?
At its core, SEPA relies on a complex transparent network of interconnected databases maintained by major banks. This network enables seamless transactions across borders within the SEPA zone. The scale of SEPA’s operations is substantial, with the network currently handling and processing approximately 43 billion transactions a year.
What are the Eurozone payment methods available?
In order to accommodate various payment needs, SEPA is categorised into five different payment processing schemes:
SEPA Credit Transfer (SCT)
SEPA Instant Credit Transfer (SCT Inst)
SEPA Direct Debit Core (SDD)
SEPA Direct Debit Business-to-Business (SDD B2B)
Variable recurring payments (VRPs)
What is a SEPA credit transfer?
SEPA credit transfer (SCT) is an electronic payment method businesses and consumers use to send one-time Euro transfers. Users can send single and bulk payments via SCT, but transfers can only be processed during weekday business hours.
What is a SEPA Instant Credit Transfer (SCT Inst)?
A SEPA Instant Credit Transfer (SCT Inst) is a eurozone payment method that enables near-instant money transfers between participating countries. Transactions are processed in under 10 seconds, 24/7, and the limit is €100,000 (varies by bank).
Example: A business in France needs to pay a supplier in Germany immediately to secure goods. Using SCT Inst, the funds are credited to the supplier's account within seconds, ensuring smooth and timely operations.
This solution is ideal for urgent payments, real-time purchases, or situations requiring immediate confirmation.
What is a SEPA Direct Debit Core (SDD)?
A SEPA Direct Debit Core (SDD) allows businesses to collect recurring payments directly from customers’ accounts with prior authorisation. Refunds for unauthorised payments are possible within eight weeks.
Example: A gym in Spain uses SDD to collect monthly membership fees from its customers automatically. Members provide a signed mandate, and the payments are processed monthly without requiring manual intervention.
The SDD Core scheme is designed for use with both individual and business customers, making it a versatile choice for automated eurozone payments.
What is a SEPA Direct Debit Business-to-Business (SDD B2B)?
The SEPA Direct Debit Business-to-Business (SDD B2B) scheme provides payments between euro-zone businesses. Once authorised, refunds aren’t permitted, making it secure for commercial use.
Example: A wholesale distributor in Italy collects regular payments from a retail chain in Austria through SDD B2B. The retail chain provides authorisation, and the fees are directly debited as per the agreement, ensuring a seamless cash flow.
SDD B2B is ideal for businesses seeking reliable and automated eurozone payments in a corporate-to-corporate context.
What are Variable Recurring Payments (VRPs)?
Variable Recurring Payments (VRPs) enable automated payments that vary in amount or frequency and are authorised through open banking. They offer flexibility for irregular or on-demand payments. This innovative approach complements eurozone payments by offering adaptable solutions for dynamic financial needs, enhancing convenience and precision.
Example: A freelance designer in the Netherlands sets up a VRP with a cloud storage provider. The designer is charged based on fluctuating monthly usage. VRPs ensure the exact amount is debited automatically without needing manual approval each time.
Which countries are part of SEPA?
There are 36 members of SEPA, including:
All 27 members of the EU
The United Kingdom (UK)
Andorra, Iceland, Norway, Switzerland, Liechtenstein, Monaco, San Marino, Vatican City State, Mayotte, Saint-Pierre-et Miquelon, Guernsey, Jersey and Isle of Man
)
Map showing member countries of the SEPA zone
How to make a SEPA transfer?
To make a payment with SEPA, three items are required:
Recipient's name
Recipient's Bank Identifier Code (BIC)
Recipient's International Bank Account Number (IBAN)
When sending euros to someone with an IBAN and BIC in the SEPA region, your bank automatically selects SEPA as the payment method. This helps mitigate human error and ensure that Euro payments are sent to SEPA recipients efficiently and cost-effectively.
Usually, only businesses with recognised European business accounts can send and receive funds via SEPA. Luckily, 3S Money offers companies worldwide SEPA access through EU and UK IBANs. Check your eligibility and get same-day pre-approval.
Is it possible to make Eurozone payments using a currency other than the Euro?
Yes, you can make payments to the Eurozone using a currency other than the euro, but remember that the process usually involves currency conversion. When you send a payment in a different currency, your bank or payment processor typically converts it into euros before it reaches the recipient. This conversion may come with additional fees or less favourable exchange rates, so reviewing the terms with your financial provider is essential.
Regardless of the currency you use to initiate the payment, the recipient in the Eurozone will likely receive the funds in euros, as this is the standard within the region.
How long do SEPA transfers take?
The time it takes for a SEPA payment to be processed varies depending on the scheme used:
Standard SEPA Credit Transfer: Typically takes one business day, similar to a domestic money transfer, but weekends and national bank holidays may impact this.
SEPA Instant Credit Transfer: Completes within a few seconds, unaffected by weekends and bank holidays.
SEPA Direct Debit Core Payments: Usually complete within two working days.
B2B Direct Debit Payments: Typically take three working days.
How much do SEPA transfers cost?
With 3S Money IBAN accounts, it's free to receive SEPA payments, and sending one costs just €1, regardless of the payment's size. There's no charge for receiving a SEPA payment.
What are the benefits of SEPA payments?
Businesses can benefit from using SEPA payments in the following ways:
Efficiency: SEPA streamlines payment processes, making transactions faster and more efficient. It eliminates the complexities of cross-border payments, providing a common set of rules and standards.
Cost-effective: SEPA reduces costs for businesses and individuals by eliminating fees associated with multiple national payment systems. Using a single currency also minimises currency conversion costs.
Uniform payment methods: SEPA introduces standard payment instruments, such as SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD), ensuring a consistent approach to electronic payments across participating countries.
Simple cross-border transactions: SEPA treats cross-border transactions within the Eurozone like domestic transactions, simplifying processes and systems for international payments.
Enhanced competition and market integration: SEPA contributes to a more integrated and competitive European payments market, fostering innovation, improved services, and greater choice for consumers and businesses.
What is the difference between SEPA and SWIFT?
Geographic scope
SEPA is a Eurozone-specific initiative for euro-denominated transactions within the European Union. In contrast, SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network facilitating secure communication among financial institutions worldwide.
Currency handling
SEPA only facilitates euro-denominated payments within the SEPA region. SWIFT supports payments in multiple currencies globally.
Transaction speed
SEPA credit transfers are typically processed within one business day. Depending on the currencies and countries involved, SWIFT payments can take several business days to settle.
Cost and fees
SEPA payments are processed with shared fees between the sender and receiver, or potentially there can be no fees for domestic transfers. SWIFT payment fees vary based on the payment amount, currencies and banking institutions.
Security measures
SEPA is a more secure system as all payments are controlled by the European Central Bank (ECB). SWIFT payments, on the other hand, have to pass through multiple banks before reaching the recipients, increasing the chance of anomalies or issues.
Make high-value eurozone payments with 3S Money
Every 3S Money account is assigned a dedicated Relationship Manager who can help you maximise your payment opportunities in Europe and beyond. Whether you need to pay local salaries or suppliers or accept customer payments in Euro, our International Business Account can help you scale on your terms.
Here's a taste of what we offer:
EU SEPA-enabled IBANs in your company name.
Dedicated local Relationship Managers and client support in 12+ languages.
Access to 65+ currencies with competitive exchange rates.
100% online application with no EU/EEA residency requirements.
Send & receive high-value payments from 190+ countries & territories.
Multi-currency batch payment and bespoke API solutions.
Contact our team to find out how we can support your business or start your application and receive same-day pre-approval.
Last updated: 10/12/24
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© 3S Money Club Limited 2019-2024. All rights reserved. 3S Money and 3s.money are trading names of 3S Money Club Limited. 3S Money Club Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for issuing of electronic money and the provision of payment services with FCA registration number 900918. 3S Money Club Limited is registered in England and Wales, Company Number 8574246, with its registered office address at 45 Folgate Street, London, E1 6GL, United Kingdom. 3S Money Club Limited is registered with The United Kingdom Information Commissioner's Office with ICO registration number ZA495485. 3S Money Club Limited (DIFC Branch) is regulated by the Dubai Financial Services Authority (DFSA) with DFSA reference number F007004, authorising it under Article 48 of the Regulatory Law 2004 to carry on the Financial Services comprised in Issuing Payment Instruments and Providing or Operating a Payment Account. 3S Money Club Limited (DIFC Branch) is registered in Dubai International Financial Centre, Licence Number CL5587, with its registered office address at Central Park Towers, Office 17-37, DIFC, Dubai, UAE. 3S Money (Luxembourg) S.A. is authorised by the Commission de Surveillance du Secteur Financier (CSSF) under the law of 10 November 2009 on payment services for issuing, distribution and refund of electronic money with CSSF registration number W00000016. 3S Money (Luxembourg) S.A. is registered in Luxembourg, R.C.S number B245715, with its registered office address at 25C, Boulevard Royal, L- 2449, Luxembourg, Grand Duchy of Luxembourg