SEPA Payments Software

SEPA and ACH are both payment systems, but SEPA is focused on euro-denominated payments within Europe, while ACH is used for domestic payments in the United States. Both systems are similar as they enable electronic fund transfers, but they operate within different regulatory frameworks and regions.

One of the main differences is that SEPA allows for easier cross-border payments in euros, while ACH is more suited for internal transfers within the U.S. SEPA also supports real-time payments through SEPA Instant, whereas ACH has its own same-day processing options.

Yes, SEPA payments are considered very safe. They are regulated by the European Union, ensuring that all participating banks and financial institutions comply with strict security standards. SEPA uses secure encryption and authentication protocols to protect transactions from fraud and unauthorized access.

Additionally, SEPA transactions are processed under the Payment Services Directive (PSD2), which adds an extra layer of security and consumer protection. PSD2 mandates strong customer authentication (SCA) for online payments, requiring multiple factors of authentication, such as passwords, biometrics, or device-based verification.

To make a SEPA payment, you’ll need the recipient’s International Bank Account Number (IBAN) and, in some cases, the Bank Identifier Code (BIC). You can initiate the payment through your online banking portal or a payment gateway that supports SEPA transfers by entering the required details. 

Most banks and financial institutions offer SEPA transfer options under their international or euro transfer sections. Once the payment is submitted, the SEPA payment processing solution will handle the transfer, typically reaching the recipient within 1-2 business days.

For individuals within the European Economic Area (EEA), SEPA payments are often free or come with low fees, as most banks treat SEPA transfers like domestic payments. However, costs can vary depending on the bank’s policies and whether it’s a standard or instant SEPA transfer.

For Business payments or cross-border transactions outside the EEA, some fees may apply, though they are generally lower than traditional international wire transfer fees. It’s important to check with your bank for specific charges related to SEPA transfers.

The processing times for different types of SEPA payments vary. SEPA Credit Transfer typically takes 1 business day to process. The SEPA Instant Credit Transfer processes in less than ten seconds, offering near real-time transfers available 24/7, ideal for urgent transactions.

SEPA Core Direct Debit Transfer requires a minimum of 2 business days to process. This type of transfer is often used for recurring payments such as utility bills. But SEPA B2B Direct Debit Transfer takes a minimum of 3 business days to process.