A SEPA credit transfer is a euro payment within the Single Euro Payments Area: you send money to an account anywhere in the area as easily as you would domestically, using only the recipient’s IBAN. SEPA covers 41 countries and territories and applies one standard to euro payments. In this article you can read what a SEPA credit transfer is, how it works, which rules apply and what to check before you send.
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What is a SEPA credit transfer?
SEPA stands for Single Euro Payments Area: one payment space in which euros move under the same conditions within and between countries. The SEPA Credit Transfer scheme launched in 2008 and has been the mandatory standard for euro transfers since August 2014. Since 2017 there is also SEPA Instant, where the money reaches the account within seconds. As a result a cross-border euro payment is no harder than a domestic one. For background, see the European Central Bank on SEPA. For the scheme as a whole, read our explainer on the Single Euro Payments Area.
How a SEPA credit transfer works
For a SEPA credit transfer you need the recipient’s IBAN, the International Bank Account Number. You enter the amount, add a reference if you want one, and send the payment through online banking or an app. You can set it up as a one-off or as a recurring transfer, which is the practical option for rent, salaries or subscriptions. Alongside the transfer there is SEPA direct debit, where you authorise the recipient to collect from your account instead, on the basis of a signed SEPA authorisation.
SEPA credit transfers in your organisation
For a business, SEPA makes paying suppliers and refunding customers across Europe simpler and cheaper than it used to be. Make sure your accounting and payment systems are SEPA-compatible and work with IBAN. Set clear procedures for who may initiate a payment and, where you collect by direct debit, for how mandates are stored and withdrawn. The payoff is faster payments, fewer errors and lower transaction costs.
Rules and regulation
SEPA is laid down in the SEPA Regulation (260/2012). On top of that the European payment services directive PSD2 obliges banks to apply security measures such as strong customer authentication. If you process bank details of customers and suppliers, the GDPR applies as well, because an IBAN tied to a name is personal data. So treat your payment files with the same care as the rest of your records.
What to watch out for
Always check the recipient’s IBAN, and the BIC where it is still requested, because a wrong entry means delay at best and a payment to the wrong account at worst. Watch for charges on certain transfers, keep your systems current, and secure your payment environment with strong passwords and two-factor authentication. One more practical point: a supplier who suddenly sends new bank details is the classic invoice fraud pattern, so verify a changed IBAN through a channel you already know rather than by replying to the e-mail.
The role of TriFact365
TriFact365 does not execute payments. What it does is supply the right details for a smooth SEPA credit transfer: the software recognises the supplier’s IBAN and BIC on your purchase invoices automatically and puts them in the booking proposal in your TriFact365 portal. You also keep master data per creditor, including a payment preference such as direct debit. After your check the entry goes to your accounting package, and the payment itself you make in your bank or in that package. That is one less field to retype, which is where most wrong-account payments start. See how processing incoming invoices works.
Frequently asked questions about SEPA credit transfers
SEPA covers 41 countries and territories: all EU member states plus Norway, Iceland, Liechtenstein, Switzerland, the United Kingdom and several microstates. Not every SEPA country uses the euro.
With a credit transfer you instruct the payment yourself. With a direct debit you authorise the recipient to collect from your account, on the basis of a SEPA mandate.
A standard SEPA credit transfer normally reaches the recipient’s account within one business day. With SEPA Instant the money arrives within seconds.
Not on your own initiative. Once a transfer is executed the money is the recipient’s, and your bank can only request a recall, which the receiving bank and account holder have to cooperate with. That is why checking the IBAN before sending matters.
No. TriFact365 does not execute payments. It does recognise the IBAN and BIC on your purchase invoices automatically and carries them into the booking proposal. You make the payment in your bank or accounting package.
In closing
The SEPA credit transfer made euro payments across Europe fast, safe and affordable. Work with correct IBAN data and a tidy administration and your payments run without incident, which leaves the attention where you want it, on the business rather than on chasing a payment that went to the wrong account.
