SEPA

SEPA (Single Euro Payments Area) is the pan-European payment method used for non-urgent, usually high-volume and low-value EUR payments – similar to Bacs in the UK. SEPA allows you to receive or send SEPA Credit Transfers or to pay via SEPA Direct Debit.

SEPA Credit Transfer (SCT) facilitates efficient and cost-effective sending and receiving EUR electronically inside the UK and across countries in the SEPA zone.

SCTs are a safe and affordable way to send funds from one bank within the SEPA area to another. Typically used for one-off payments, they tend to clear within one working day. Transfers can only be made in EUR using standardised information such as the international bank account number (IBAN) and business identifier code (BIC).

• Fast Transfers: SCTs initiated before the Bank’s cut-off time are settled on the same day; otherwise, they’ll settle on the following business day.
• High Limits: The maximum amount of a SEPA credit transfer payment is 1,000,000,000 EUR.
• Full Payment Certainty: The payment amount is credited to the beneficiary account in full. In contrast to other international transfers, charges cannot be deducted from the transaction amount.
• Assurance: Standardised ISO 20022 formats and fixed costs reduce errors and transaction processing delays.
• Improved Visibility on Cash Flow: Guaranteed next day and full settlement, aids in better receivable invoice reconciliation, liquidity management and financial planning.
• Easy and Flexible: A recall is possible within 13 months of a transaction settlement via an automated bank-to-bank communication protocol –– subject to agreement by the beneficiary (and their bank).

SEPA Direct Debit enables third parties to collect payments directly from a EUR bank account.

SEPA Direct Debit (SEPA DD) is a service that allows clients (Debtors) to authorise third parties (Creditors) to collect payments directly from their EUR bank account. Typically used by clients to manage payments for bills, subscriptions, and other recurring charges.

This service is only available on Euro denominated foreign currency bank accounts.

• Euro Payments: Facilitates payment processing/collection in euros across all 36 countries in the SEPA area.
• Transparent: Receive advanced notification from the Creditor outlining the amount and date of debits at least 14 calendar days in advance (unless otherwise agreed).
• Recurring Payments: Ideal for recurring transactions but can also be used for one-off payments.
• Cost Effective: Low payment charges typically make it cheaper than paying via wire transfers.
• Reassurance: an exact payment date determined by the Creditor, so late payment penalties can be avoided.
• Flexibility and Control: Mandates must be pre-authorised and can be cancelled at any time giving customers control and security.