International Money Transfers: How SEPA Transfers Work

SEPA transfer is the standard payment system for money transfers within Europe. Whether you’re paying bills, sending money to friends, or transferring between your own accounts – with SEPA, it’s fast, inexpensive, and reliable.

The Basics: What You Should Know About SEPA

SEPA stands for Single Euro Payments Area and allows you to make euro payments between bank accounts in Europe. The system operates in a standardized way across all EU member states as well as Iceland, Liechtenstein, Norway, Switzerland, Monaco, San Marino, Andorra, Vatican City, and the United Kingdom (for euro accounts).

For a smooth transfer, you need the following recipient information:

• Full name
• IBAN (International Bank Account Number)
• BIC/SWIFT code (required or optional depending on the bank)
• Amount in euros
• Payment reason (optional but recommended)

Practical Guide: The 6 Steps to a Successful Transfer

Step 1: Access Online Banking
Log in to your bank’s app or online portal.

Step 2: Select Payment Type
Look for options like “SEPA Transfer,” “Euro Payment,” or “Intra-EU Transfer” (the exact wording varies by bank).

Step 3: Enter Recipient Details
Input the recipient’s name, IBAN, and optionally the BIC code. Correctly entering the IBAN is crucial – typos can cause delays.

Step 4: Configure the Transfer
Set the euro amount and add a payment reason, e.g., “March Rent” or “Loan Repayment.” This helps the recipient identify the payment.

Step 5: Review and Confirm Data
Check all details carefully, especially the IBAN and amount. After confirmation, your SEPA transfer will be processed.

Step 6: Save Transaction Receipt
Keep the confirmation for your records. It serves as proof of payment.

Duration and Costs: What to Expect

Processing depends on the type of transfer chosen:

Standard SEPA Credit Transfer: Usually takes one banking day. This means your payment arrives at the recipient’s account on the next business day.

Real-Time Transfer (SEPA Instant): Executed within seconds, 24/7 – including weekends and holidays. Many banks offer this faster option.

Regarding fees, within the SEPA zone, the rule is: domestic transfers are free or very inexpensive. Check your bank’s fee schedule for any applicable charges.

Supported Countries and Regions

SEPA transfers work in the following countries:

All EU member states (27 countries) plus:

• Iceland, Liechtenstein, Norway
• Switzerland, Monaco, San Marino
• Andorra, Vatican City
• United Kingdom (for euro accounts)

Transfers to the UK may vary depending on the bank, so it’s advisable to check with your bank beforehand.

Best Practices for Safe and Reliable Transfers

• Double-check IBAN: Before sending your SEPA transfer, verify the recipient’s IBAN multiple times. An incorrect number cannot be easily reversed.

• Use SEPA Instant for urgent payments: If the payment is urgent, choose the SEPA Instant option – the transaction is confirmed within seconds.

• Transfer only euros: The SEPA system works exclusively with euros. For other currencies, you need a separate international transfer service.

• Keep receipts: Save your transaction receipts digitally or in paper form, especially for business or important personal payments.

• Be aware of bank differences: Different banks have different interfaces and options – explore your specific online banking system to save time.

SEPA transfer remains one of the most reliable and cost-effective methods for cross-border euro payments in Europe. Following these steps and tips, your transfers should go smoothly.