What’s a SEPA transfer?
SEPA is an acronym for the Single Euro Payments Area, an EU-inspired payment initiative designed to make cross-border bank transfers in euros simpler and more efficient. SEPA covers all EU countries as well as payments in euros to some other European countries, including Iceland, Norway, Switzerland, Liechtenstein, Monaco and San Marino.
Typically, SEPA transfers are as easy to make as domestic transfers, which means they’re simple, quick, safe and most of the time, free. But if you’re unsure it’s always worth checking with your bank before making a SEPA transfer, as some do still charge to receive SEPA payments
Who are SEPA transfers for?
A single system for both domestic and cross-border transfers makes it easy for anyone to charge an account in one country directly for services provided in another, including paying for things with Direct Debit, credit transfer, debit and credit card payments and even withdrawing money from cash machines.
This is particularly useful if you’re working or studying in another SEPA country where you can use an existing account in your own country to get paid and pay your bills in the new country. So, essentially SEPA transfers are for anyone living or working within the EU and wider Europe.
Is a SEPA transfer instant?
SEPA transfers usually happen within two working days so although they’re very quick, they’re not instant.
A list of all SEPA countries:
- Czech Republic
- San Marino
One thing to note
In April 2018, the European Commission presented a proposal to extend cheaper euro transfers and fairer currency conversions to consumers and businesses in non-euro countries as well. Under this proposal, all consumers and businesses in the EU would be able to transfer money cross-border, in euros, at the same cost as they would pay for a domestic transaction. The new rules would also make sure consumers are informed of the cost of a currency conversion before they make a payment abroad in a different currency than their own. We’ll keep you posted if this proposal goes through.
The Clear Currency effect:
Keep it simple
SEPA transfers cover EU based transfers made in euros.
They also include some non EU European countries.
SEPA transfers can include other transactions such as spot and forward contracts.
Top tips for making a money transfer
For many of us making an international payment can feel a little uneasy. Some of us have never made a payment, others have done it regularly but are you aware of all the potential pitfalls? Find out more about how you can ensure to make a currency transfer without losing out.Opinion
Years of Zero - How Zero to Negative Interest Rates Affect FX Hedging
Are you an exporter generating US Dollar revenues overseas? Have you previously considered hedging your future rates of conversion through forward contracts but decided against due to the high “give up” premium, the interest rate differential creating a significantly worse forward rate over the prevailing spot rate? Recent central bank actions through the slashing of interest rates may have helped you.Guides
GBPUSD The oldest currency pair in the world, but where next?
There were fears a month ago that sterling could fall to its lowest level against the US dollar in its 200+ year history and despite reaching the depths of 1.1450, the lowest since June 1985, it still had some way to go to reach the all-time low of 1.05.
Get In Touch
Currency exchange doesn’t have to be stressful or expensive. Our experienced and dedicated team is here to help you keep more of the money you transfer.
+44 (0) 207 151 4832