What is SEPA?
SEPA (the Single Euro Payments Area) is the area of 41 countries where euro bank transfers and direct debits follow the same rules, so a cross-border euro payment works like a domestic one. A SEPA Credit Transfer reaches the payee's bank within one business day, and SEPA Instant in under 10 seconds. Example (for illustration only, using the specimen IBAN Swift publishes for Germany): a buyer pays €18,500 by SEPA Credit Transfer to DE89 3704 0044 0532 0130 00, with the invoice number in the 140 character remittance field.
- The SEPA schemes' geographical scope covers 41 countries after the European Payments Council approved Serbia on 22 May 2025.
- A SEPA Credit Transfer is only in euro, and the payer's bank must ensure the payee's bank is credited within one banking business day.
- SEPA Credit Transfers carry up to 140 characters of remittance information, and the scheme sets no maximum amount, although banks may set their own limits.
- Under the EU Instant Payments Regulation, euro area banks had to be able to receive instant euro payments by 9 January 2025 and send them by 9 October 2025.
How SEPA works
The European Payments Council (EPC) writes the rulebooks for three SEPA schemes: SEPA Credit Transfer (SCT), SEPA Instant Credit Transfer (SCT Inst) and SEPA Direct Debit (SDD). Banks in the participating countries sign up to the schemes and follow the same formats and timings. Accounts are identified by IBAN, and within the EEA the payer only needs the payee's IBAN.
| Feature | SEPA Credit Transfer | SEPA Instant Credit Transfer |
|---|---|---|
| Currency | Euro only, in all stages | Euro only |
| Speed | Payee's bank credited within one banking business day | Under 10 seconds, 24 hours a day, every day |
| Amount limit | No scheme maximum; banks may apply their own limits | Initially €15,000 at launch in November 2017 |
| Remittance information | Up to 140 characters, structured or unstructured | Up to 140 characters |
| Charges | Payer and payee each pay their own bank | No higher than the bank's charges for standard transfers (Instant Payments Regulation) |
Sources: EPC 2025 SCT Rulebook (effective 5 October 2025); EPC SCT Inst launch announcement (30 November 2016); Bird & Bird on Regulation (EU) 2024/886. As published on 29 October 2026.
The EPC's list of SEPA countries, version 8.0 of 24 December 2025, names 30 EU and EEA countries and 11 non-EEA countries: Albania, Andorra, Moldova, Monaco, Montenegro, North Macedonia, San Marino, Serbia, Switzerland, the United Kingdom and Vatican City State. Guernsey, Jersey, the Isle of Man and Saint-Pierre-et-Miquelon are covered as territories.
Where a business meets SEPA
A company outside Europe meets SEPA when a European customer wants to pay in euros by domestic transfer rather than by international wire. With EUR account details that have an IBAN, that customer pays a SEPA Credit Transfer, which costs it little and arrives in full, because the scheme's charging principle has each side pay only its own bank.
Since 9 October 2025 the payer's bank in the euro area must also offer verification of payee: it checks the name the payer typed against the name held for the IBAN and tells the payer how closely they match, so the payer can decide whether to authorize the payment. A business whose euro details are in its own name gets a match; pooled details in a provider's name can trigger a warning.
The 2025 SCT Rulebook, in force since 5 October 2025, also sets the recall rules. A payer's bank can recall a transfer for a duplicate or a technical error within 10 banking business days, or for fraud within 13 months, and the payee's bank has 15 banking business days to answer. Only one recall can be sent for each transfer.
Common mistakes with SEPA
- Sending a non-euro currency. SEPA carries euros only. A payment in dollars or pounds to a European account goes by SWIFT.
- Expecting an OUR option. Within the EEA, each side pays its own bank, so banks offer only shared charges for SEPA payments. See SHA, OUR and BEN.
- Overfilling the reference. Remittance information is capped at 140 characters. Put the invoice number first.
- Relying on a recall. A recall is a request. The payee's bank answers it, and money that has already been withdrawn may not come back.
Related terms and how Helm handles it
SEPA is the euro counterpart of ACH in the United States and Faster Payments in the UK. It uses the IBAN for accounts and, for some non-EEA accounts, the bank's SWIFT code.
Helm provides EUR details with an IBAN in your company's own name, receiving SEPA and SWIFT payments. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How many countries are in SEPA?
41, after the European Payments Council approved Serbia on 22 May 2025. The EPC list includes the 30 EU and EEA countries plus 11 others, including Switzerland and the United Kingdom.
How long does a SEPA transfer take?
The SCT Rulebook requires the payer's bank to ensure the payee's bank is credited within one banking business day. SEPA Instant transfers arrive in under 10 seconds at any time.
Is there a maximum amount for a SEPA transfer?
The SEPA Credit Transfer scheme sets no maximum amount, but each bank may apply its own value limits under its risk management.
Can I send US dollars by SEPA?
No. SEPA carries euros only, in all stages. Payments in other currencies to European accounts go by SWIFT.
Do I need a BIC for a SEPA payment?
Within the EEA, the payee's IBAN is enough. The Bundesbank notes that for cross-border transfers involving countries outside the EEA, the BIC must also be given.
References
- European Payments Council: SEPA schemes' geographical scope extended to Serbia (22 May 2025)
- European Payments Council: EPC409-09 List of countries in the SEPA schemes' geographical scope, version 8.0 (24 December 2025)
- European Payments Council: 2025 SEPA Credit Transfer Rulebook, version 1.0 (EPC125-05)
- Deutsche Bundesbank: SEPA Credit Transfer
- Bird & Bird: Instant Payments Regulation (EU) 2024/886
- European Payments Council launch of the SEPA Instant Credit Transfer scheme (30 November 2016, via Mondo Visione)
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.