Accounting technology / Glossary / SEPA payments

What are SEPA payments?

Definition

SEPA payments are euro bank transfers and direct debits made under the Single Euro Payments Area schemes, which let businesses pay and collect in euros across the EU and other European countries, including the UK, Switzerland and Norway, as easily as at home. The main schemes are SEPA Credit Transfer, SEPA Instant Credit Transfer and SEPA Direct Debit.

Also calledSEPA Credit TransferSCTSEPA InstantSEPA Direct DebitSingle Euro Payments Area

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Currency: Euro only
Instant send deadline (euro area): 9 October 2025
Payee check: Verification of Payee

How SEPA payments work

The schemes are managed by the European Payments Council and use IBANs and ISO 20022 message formats. A standard SEPA Credit Transfer arrives within one business day. SEPA Instant Credit Transfer settles within seconds at any time. Under the EU Instant Payments Regulation, payment providers in the euro area had to be able to receive instant euro transfers by 9 January 2025 and send them by 9 October 2025, and to offer Verification of Payee, which checks the payee's name against the IBAN before the payment is sent, from 9 October 2025. SEPA Direct Debit has a Core scheme for consumers and a B2B scheme, both based on a mandate signed by the payer. Businesses send payment files in the pain.001 format or pay through bank APIs, and spend and AP software in Europe sends SEPA payments directly.

Common questions

How long does a SEPA transfer take?+

A standard SEPA Credit Transfer arrives within one business day. A SEPA Instant transfer arrives within seconds, at any time of day, every day of the year.

Can UK businesses use SEPA?+

Yes. The UK remains in the SEPA schemes, so UK banks and payment providers can send and receive SEPA euro payments, though some extra information is required because the UK is outside the EU.

What is Verification of Payee?+

A check, required in the EU from 9 October 2025, that compares the payee name entered with the name on the account for the IBAN before the payment is sent, and warns the payer of a mismatch.