With a SEPA transfer you can send money quickly and conveniently to the people who are important to you within Europe. This is the standard method for transfers within the European Union (EU) and the European Economic Area (EEA).
Fast and uncomplicated transfers are important if you want to support friends and family abroad or receive money yourself. With a SEPA payment this works smoothly for online purchases or a donation to people in the EEA.
This guide tells you what SEPA transfers are, how to carry them out and therefore send and receive money.
The most important facts at a glance
- A SEPA transfer is used for a cashless payments in euros in the SEPA area.
- With a SEPA transfer the money arrives in the recipient account within one banking day.
- For a SEPA transfer you need the recipient’s IBAN and the BIC of the bank too if applicable.
What is a SEPA transfer?
SEPA transfers have been the EU-wide standard for cashless payments in euros since 2014. The system serves to make payment transactions in Europe quick, easy and uniform. This applies to both the duration of a SEPA transfer as well as to the costs. SEPA transfers in or between countries of the EEA can be processed just as quickly and cheaply as euro payments within Germany.
What does SEPA transfer mean?
SEPA stands for Single Euro Payments Area. The system was created so that all money transfers comply with the same uniform standards for SEPA payments between participating European countries and regions. The previous bank and account numbers, bank sort codes and other country-specific information required were replaced by the IBAN and BIC for SEPA payments.
Which countries belong to the SEPA area?
36 countries currently allow SEPA transfers: These include the 27 member states of the EU, the members of the European Free Trade Association (EFTA) Iceland, Liechtenstein and Norway as well as Monaco, Switzerland and the United Kingdom. Not every SEPA country uses the euro as its main currency. Denmark and Switzerland have their own currencies but SEPA payments are still possible there.
How can I complete a SEPA transfer?
Nowadays, most people make a SEPA transfer via online banking. If you fill in a paper transfer form for a SEPA payment, you have to sign it. When making an online SEPA transfer, online banking guides you through the procedure – you just have to follow it step by step and confirm everything at the end, for example with a transaction number (TAN).
Regardless of whether it is online or via a paper transfer form, you usually require the following information for a SEPA payment:
- Name of the recipient or receiving company
- IBAN of the recipient
- Possibly BIC – particularly for SEPA transfers abroad
- Transfer amount
- Purpose
- Name and bank details of the sender (you or your company)
For a SEPA bank transfer in paper form, the date and signature are required.
How does a SEPA payment work?
When you make a SEPA transfer your bank first records the payment details and processes them automatically. To do this you need the IBAN at least and, if applicable, the BIC of the recipient. If there are sufficient funds in your account, your bank will debit it with the specified amount and order the transfer. The money arrives in the recipient’s current account the next day.
What are the advantages of a SEPA transfer?
SEPA transfers have a number of advantages – regardless of whether you are making a money transfer within Germany or to another country:
- Simple – SEPA payments follow the same standards and a uniform process everywhere.
- Fast – In most cases, the money sent reaches the recipient’s account within one working day.
- Reliable – SEPA transfers are secure and traceable via the individual payment reference.
- Cost-effective – SEPA transfers are usually not only fast, but also free.
If you do not want to use a SEPA transfer and wish to send money abroad, Western Union offers you various practical alternatives.
How long does a SEPA transfer take?
For a SEPA transfer the duration is uniform and is even legally regulated. Regardless of whether it is a domestic or international transfer, the money must reach the recipient account within one banking day.
If a SEPA payment takes longer, this is usually for one of the following reasons:
- If the transfer is made in paper form at the counter, a transfer period of 2 days
- You made the transfer on a public holiday or at the weekend and therefore not on a banking day.
- You ordered the transfer after your bank’s cut-off time for transfers and it will not be processed until the next working day.
Some banks also offer instant transfers between certain countries. The SEPA transfer is then carried out within seconds. If necessary, it is best to ask your credit institution directly whether they offer transfers in real time.
Is there a limit for SEPA transfers?
If you are able to reach the limit for a SEPA transfer, consider yourself lucky: by default this is EUR 999,999,999.99 and therefore exactly one cent under a billion euros. For SEPA payments in real time an upper limit of EUR 100,000 applies. With SEPA direct debits, however, the sender and recipient can set the amount freely and without limits.
Also pay attention to the following points when completing a SEPA transfer:
- Some banks impose a daily limit for transfers.
- You must declare foreign transfers amounting to EUR 12,500 or more to the Deutsche Bundesbank in accordance with the Foreign Trade and Payments Ordinance (AWV) reporting obligation
What does a SEPA transfer cost?
SEPA transfers are free in principle. Even with an international SEPA transfer the costs are zero. However, the prerequisite for this is that the sender and recipient have an account at a bank in the SEPA area and the transaction is made in euros. However, additional fees may apply for transfers in other currencies or for amounts of EUR 50,000.
If you make a mistake when arranging a SEPA payment and important information is incorrect or missing, your bank may charge an administration fee. If in doubt, ask your bank or financial service provider about possible costs before ordering a SEPA transfer.
Summary
Since 2014, the SEPA system has been the uniform standard for cashless payments in euros in and between the 36 countries of the European Payments Area. The procedure includes the mandatory IBAN and uniform legal rules for the duration of SEPA transfers. If you want to send money to a country outside the SEPA area or do not want to make a SEPA transfer, you can use Western Union and still have no problem sending money to a bank account.
FAQs and guidelines
How does a SEPA transfer work?
You can order a SEPA transfer either online or using a payment form. In both cases you must provide the name, IBAN and possibly the BIC of the recipient, the transfer amount and the intended purpose. The money arrives in the recipient account within one banking day.
What does “payment via SEPA” mean?
A SEPA payment is a transfer or direct debit according to the specifications and within the Single European Payment Area (SEPA). It is usually processed in euros and via bank accounts with IBAN.
What is the difference between SEPA and IBAN?
SEPA stands for Single European Payment Area. It covers a total of 36 countries, including all EU member states. Within the SEPA system, the IBAN serves as the International Bank Account Number (IBAN) to clearly identify account numbers.
How much does a SEPA transfer cost?
SEPA transfers are free in principle. However, the transaction must meet three requirements: It will be processed in euros and within the European Economic Area (EEA) and you will not transfer more than EUR 50,000.
