Payments and banking

SEPA (Single Euro Payments Area)

The area in which euro transfers and direct debits work under the same rules and at domestic cost, covering all EU countries and several neighbours.

What SEPA (Single Euro Payments Area) means

The Single Euro Payments Area harmonises euro payments across 36 countries: the EU member states, the EEA countries, the United Kingdom, Switzerland and a few microstates. Within SEPA a credit transfer, a direct debit or an instant payment in euro follows the same format and rules whether it goes to the next street or to another country, and banks may not charge more for it than for a domestic transfer.

SEPA is built on the IBAN and the ISO 20022 message standard. The SEPA Instant Credit Transfer scheme, which banks in the euro area must offer since 2025, settles payments in seconds around the clock. Businesses in non-euro EU countries still use SEPA for their euro payments while domestic payments in their own currency run through national schemes. Kontevia produces SEPA-ready payment data from every invoice.

Related terms

IBANThe international bank account number used for all SEPA payments. Country code, check digits and the national account identifier in one string.EPC QR code (SEPA QR)A QR code standardised by the European Payments Council that holds the data of a SEPA transfer so the payer can pay an invoice by scanning it.Open banking (PSD2)The EU rules that oblige banks to let licensed third parties access account data and initiate payments with the customer's consent.Bank reconciliationMatching every transaction on the bank statement with an invoice, receipt or other record so the books and the bank agree.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

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