SEPA (Single Euro Payments Area) is a unified payment area in euro (EUR) covering 41 countries and certain territories, including all European Union member states, as well as Iceland, Norway, Liechtenstein, Switzerland, the United Kingdom, Andorra, Monaco, San Marino, the Vatican, Albania, Montenegro, Moldova, North Macedonia, and the Republic of Serbia.
The goal of SEPA is to enable cashless payments under the same conditions, rights, and obligations, regardless of whether the transaction is carried out within one country or between different countries.
Benefits of SEPA payments
For individuals:
Clients continue to initiate foreign currency payments in the same way as before (at a branch, via e-banking, or mobile banking).
The Bank automatically determines the execution method (SEPA or SWIFT), depending on the fulfillment of conditions, transaction characteristics, and applicable regulations, ensuring that the transaction is processed in the most efficient and cost-effective way for the client.
If the payment order meets SEPA criteria (EUR, IBAN, recipient bank participating in SEPA, SHA cost option), it will be executed as a SEPA payment. Otherwise, it will be processed via the SWIFT network or may be rejected in accordance with applicable rules. If a client wishes to execute a payment via the SWIFT system to a recipient within the SEPA area in EUR, this can be done by selecting the OUR cost option.
Conditions for SEPA payment execution
SEPA payments are executed in defined processing cycles, on the same day (T+0) or at the latest the next business day (T+1), provided that the payment order is correct, complete, and sufficiently funded.
SEPA payments are used for EUR transactions within the SEPA area and are characterized by lower costs, faster execution, and clearly defined rules.
SWIFT payments are used for other currencies, for EUR payments outside the SEPA area, or when SEPA conditions are not met, typically involving longer processing times and potentially higher costs due to intermediary banks.
Funds from the SEPA area are credited to the recipient’s account immediately upon receipt, or on the next business day if received during non-business days.
In accordance with applicable regulations, the recipient is required to:
If the recipient does not wish to accept the incoming funds (in whole or in part), they must provide instructions to the Bank to return the funds to the sender.
If documentation is not provided or is incomplete, the Bank will act in accordance with applicable regulations and notify the competent authorities.
In line with the implementation of SEPA payments, the Bank has updated its general terms and conditions and fee tariff, further improving the conditions for the use of foreign currency payment services.
