What is a SEPA money transfer?

Germany By Francesca Gerardis May 25, 2022

A SEPA money transfer can be a quick, convenient way to move money to and from loved ones around Europe. It’s the standard way to make payments to, or receive money from, those in countries within the European Union (EU) or European Economic Area (EEA).

Speed and ease are important factors when supporting friends and family overseas or receiving remittance yourself. Helping those in neighbouring countries and territories or further afield can also work efficiently via a SEPA payment.

Learn what SEPA money transfers are, how to make one and everything you need to start sending and receiving money this way.

What does SEPA mean?

SEPA stands for Single Euro Payments Area in English. The system was created so that money transfers all adhere to the same uniform standards for payments between participating European countries and territories. The previous bank and account numbers, sort codes and other country-specific details required were replaced by the SEPA system.

Since 2014, SEPA money transfers have been the EU-wide standard for making cashless payments. Within the EEA, it became the mandatory method in February 2016. As SEPA countries generally use the same currency of euros (EUR), it aims to make the money transfer process quick and clear.

Which countries are eligible for SEPA money transfers?

There are currently 36 countries eligible for SEPA money transfers. These include all the member countries in the EU and EEA, alongside a few more nations.

Territories such as the Canary Islands, the Azores, Gibraltar and more are eligible too. Not every SEPA country uses the euro as its primary currency. Denmark and Switzerland have their own currencies but are still members of the SEPA group.

Here are all the countries where you can send and receive SEPA money transfers.

The 27 EU member states:

Austria
Belgium
Bulgaria
Croatia
Republic of Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden

The three countries from the EEA:

Iceland
Lichtenstein
Norway

Three other European countries and territories:

Monaco
Switzerland
UK

What to consider when initiating a SEPA money transfer

Before you start an international money transfer via SEPA, there are a few things to consider. The first factor to figure out is the destination where your money transfer is going. If it’s outside Europe, or in Europe but not to a country within SEPA, then you’ll have to send money in a different way.

There are a few important aspects to think about when you’re moving money from Germany to another country/territory via SEPA.

What are the advantages of a SEPA money transfer?

There are a variety of advantages to making a SEPA money transfer from Germany to loved ones in another country. SEPA international money transfers are:

Simple – A uniform process makes SEPA payments straightforward, as you follow the same standards wherever the destination.
Quick – The money you send will normally be credited to your receiver’s account within one business day.
Reliable – SEPA money transfers are often traceable via their individual payment reference.
Cost-effective – As well as saving time, many SEPA money transfers are free to make.

What is the difference between Basislastschrift and Firmenlastschrift?

There are two types of SEPA direct debit. Choosing the right method for you will depend on the relationship between the payee and receiver.

Both methods are similar, but the basic direct debit is the more common procedure for a SEPA money transfer. The main differences are:

Basic direct debit – can be used for B2B and B2C payments. The account holder can object within eight weeks after a debit, which the bank must reverse.
Company direct debit – is specifically designed for payments between companies. The account holder provides permission to redeem a direct debit and can only instruct the bank not to honour it in advance.

How long does a SEPA money transfer take?

An international money transfer by SEPA will usually be available to the receiver within one business day. In some cases, it may take up to two working days, when done online or in person at a bank. If you arrange a SEPA payment online at the weekend or on a bank holiday, you’ll also have to wait until the next business day.

Certain banks also offer SEPA Instant Credit Transfers between specific countries. These can make a SEPA money transfer within 10 seconds. Check with your provider.

How much can I transfer?

There’s no real limit to a SEPA money transfer (officially it is up to €999,999,999.99), or with SEPA direct debit transfers. However, if you make an Instant Credit Transfer, you can only send up to €100,000 at one time.

If you send more than €12,500, you will need to declare it to the Deutsche Bundesbank, the same as any other international money transfer. Learn more about the AWV reporting obligation.

What do I need for a SEPA money transfer?

The main information you’ll need to make a SEPA money transfer includes the:

Full name of your receiver or receiving company
International Bank Account Number (IBAN) of the receiver
Bank Identification Code (BIC) – when transferring money to a country outside of Germany (or your own country)
Amount of money to transfer and currency denomination
Payment reference
Name and bank details of the sender (you or your company)

When you send a SEPA transfer in person, you will have to sign to confirm the money transfer as well. If you arrange it online, your bank should guide you through its portal to ensure you follow all their processes.

What does a SEPA money transfer cost?

Generally, SEPA international money transfers are free. This normally applies when the sender and receiver both have a bank account with a financial institution within the EU or EEA. Some may charge fees, depending on the destination country, currency and amount.

If you make a mistake and key information is incorrect or missing when arranging a SEPA money transfer, you may also be charged an administrative fee. These charges always apply to the sender.

Check with your bank or service provider whether there are any fees before you make a SEPA money transfer.