SEPA

What is SEPA?

SEPA – Single Euro Payments Area, a program started by European Commission, The European Central Banks and European Banks helped in using Euro as single currency for any transactions/trade within the SEPA union.

What is SEPA union?

SEPA union is a list of member nations who are participating in SEPA program. Majorly comprises of 28 countries part of EU (European Union), 3 countries part of EEA (European Economic Area) who are not part of EU and 5 non EU or EEA countries. Total of about 36 nations are part of SEPA as of today.

NOTE: EEA includes EU countries + 3 other countries

Who are part of EU?

  1. Austria
  2. Belgium
  3. Bulgaria
  4. Croatia
  5. Republic of Cyprus
  6. Czech Republic
  7. Denmark
  8. Estonia
  9. Finland
  10. France
  11. Germany
  12. Greece
  13. Hungary
  14. Ireland
  15. Italy
  16. Latvia
  17. Lithuania
  18. Luxembourg
  19. Malta
  20. Netherlands
  21. Poland
  22. Portugal
  23. Romania
  24. Slovakia
  25. Slovenia
  26. Spain
  27. Sweden
  28. UK

Who are part of EEA?

  1. All EU countries above
  2. Iceland
  3. Liechtenstein
  4. Norway

Who are other 5 nations which are neither in EU nor in EEA?

  1. Switzerland (Neither EU nor EEA but can trade like any other EEA)
  2. Andorra
  3. Monaco
  4. San Marino
  5. Vatican City

SEPA Payment Rules

  1. Senders account & receivers account holding banks to be in SEPA Union
  2.  Currency of transfer should be EUR
  3. Default priority of the payment is NORMAL
  4.  Account used to be IBAN – International Bank Account Number
  5. BIC should be used in the transaction
  6. Charge bearer should be SLEV/SHAR
  7.  Accounts (Payer & Payee) in EUR

Types of SEPA Payment

  1. SEPA Credit Transfer (SCT)
  2. SEPA Direct Debit (SDD)
Did you know there are other kinds of payments apart from SEPA? check out here: Global Payments, Domestic, Book Transfers

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