The Single Euro Payments Area (SEPA), transfers are generally preferred by businesses for the money transfers in Europe and non-Europe countries. With a SEPA account, you can easily make money transfers to other SEPA accounts. Customers can make cashless euro payments efficiently via credit transfer and direct debit to anywhere in the European Union, as well as a number of non-EU countries, in a fast, safe and secure way, just like national payments. Opening an account is simple but first let us explain what exactly SEPA means.
What is SEPA?
The abbreviation SEPA stands for Single Euro Payments Area. The aim of the European Commission, who introduced this new transfer system, was to simplify payment transactions throughout Europe.
In general bank transfers should be processed with uniform payment products, such as bank transfers and direct debits. However in traditional banking, there are additional fees and processes that take time that cause long delays in most cases.
In order to end the cost-intensive coexistence of national payment products and SEPA products and to speed up all payments in the European Union, the European Commission launched a proposal for a regulation in December 2010. The aim was to standardize payment transactions in Europe for EUR payments. Sepa was first introduced in 2008 just for European countries and became fully regulated in 2014. After reaching a successful and efficient point the network was extended to non European countries in 2016.
This means that national payments as well as cross-border payments within the European Union are since then processed according to the same rules. This means that it doesn’t matter whether a bank transfer is made within one’s own home country or whether, for example, a payment is sent from Spain to France, or from Germany to Italy, etc., the same applies to all other countries.
There are three types of SEPA transfers:
SEPA Credit Transfer
This SEPA Transfer is the basic one. A transfer made between two IBAN accounts in Euro currency is called SEPA Credit Transfer. These are instant transfers generally completed in one working day if two banks are located in the Europe Zone.
SEPA Instant Credit Transfer
These instant SEPA transfers can be made at any time, on any day of the year and, in 99% of cases, are completed within 5 seconds. Both account holders must be in the SEPA area.
SEPA Direct Debit Transfer
There are two types: SEPA Core Direct Debit Transfer, which is available to individuals, and must be offered by all participating banks in SEPA; and SEPA B2B Direct Debit Transfer, which can only be made by businesses and is not mandatory. This type of SEPA transfers take 1-3 business days.
Which countries are included in SEPA?
This is a frequently asked question. In order to understand SEPA we need to know which countries are exactly included in the SEPA zone.The SEPA zone covers 36 European countries, including some non-euro zone and non-European Union nations.
The member states include:
27 European Union countries, including Spain, France, Germany and Italy.
Four microstates that have special agreements with the EU: Vatican City, San Marino, Monaco and Andorra.
Four countries from the European Free Trade Association: Liechtenstein, Norway, Iceland and Switzerland. Even though The UK officially left the EU, it is still considered in the SEPA zone.
We would like to remind that both Switzerland and the UK are members of the SEPA zone despite not being EU member states, along with Norway and Iceland. SEPA members aren’t required to be in the EU as we have mentioned before. There are several EU member states and SEPA members that do not use the euro as their national currency, such as Denmark and Sweden.
Requirements for SEPA Bank Account
Apart from traditional banking, online banking is efficient, especially for people doing business in different countries. This article will focus on opening a personal and business SEPA bank account. Regulations and requirements for opening a SEPA bank account are put in place to prevent money laundering. These regulations vary from one country to another.
Benefits of SEPA Accounts
You may wonder why SEPA transfers are important. The Single Euro Payment Area (SEPA) is an initiative that simplifies cross-border bank transfers within SEPA Countries. The following are the benefits of SEPA transfers.
SEPA transfers make Euro cross-border transfers easy. It simplifies transfers by helping avoid administrative burdens and complexities that you can face with international transactions. With Sepa transactions a transfer only takes a day to get to the recipients’ account. In other words you can save time with SEPA transfers.
SEPA transfers are low cost or in general Sepa transfers are free transfers for the sender and the receiver. The traditional bank system is not as strong as the SEPA network. This generally affects the costs of transfers. There are many different intermediary institutions that interfere with the transaction and this ends up with delays and additional costs. However, we would like to remind that SEPA transfers are not fully free, some banks will still charge fees for SEPA transfers. Please check with your bank before making a transfer.
SEPA covers several countries thus it provides a wide range of accessibility which may be beneficial for you and your business. Even though initially it was designed for EU countries, today SEPA transfers are used also for cross border transfers with non-EU countries. You can check the list of countries that are in the SEPA network.
SEPA transfers may be used for all types of international business. For example it is used commonly in e-commerce. It helps businesses to expand and reach customers all over Europe without worrying about complex payment processes and high fees. Or if you are a freelancer that offers services all around Europe. Then SEPA transfers are a perfect fit for you to get paid. You don’t need to use SEPA transfer for only business purposes. There are millions of people across Europe that prefer to use SEPA transactions to send money to their families and loved ones reside in another country.
When it comes to bank transfers we know that security is one of the most important points. It is important to keep your personal and financial data safe. If you prioritise your privacy and protection of your financial belongings then SEPA is a way that may give you more peace of mind when it comes to international transfers. SEPA transfers are secure and reliable. These transactions are adapted to strict security standards and are regulated by European financial authorities. This framework includes measures to prevent fraud activities and money laundering, providing a secure environment for both payers and recipients.
For businesses that operate in Europe, SEPA transfers can provide enhanced user experience. By improving user experience you can grow your business. With cost effective and instant money transfer options you can provide better quality services to your customers. Also if you are planning to use SEPA transfer for your individual transfer, you can still benefit from low transaction fees and avoid additional fees such as exchange rate.
Even though SEPA transfers predominantly are preferred by businesses, there are many individuals who prefer to use SEPA transfers for personal transactions. For individuals who want to use the SEPA network, many banks and financial institutions offer this service and related products.
How to open a SEPA account?
Thanks to technologically advanced financial institutions, it is now possible to easily get a SEPA bank account online. You don’t have to belong to a particular nationality. The purpose of this development in banking is to simplify international payments globally. There are different banks and payment providers that offer SEPA account services. We recommend you to research different financial institutions to find the best one that meets your needs. Some banks have additional monthly or annual fees. If you don’t want to pay extra fees for your basic needs then here we have an excellent solution for you. You can open a SEPA account with Jeton. Or if you have an account with Jeton you can turn it into a Sepa account by meeting the requirements.
If you don’t have a SEPA account with Jeton yet, here are the steps to have a SEPA IBAN account online:
Go to www.jeton.com/business to register an Individual/Business IBAN Account. Once you are on the page go to the Register section and click on it.
Fill in the relevant information of the account opening.
Full name
Address
Date of birth
Nationality
Identification number (such as a passport or national ID)
Once you complete these steps you will be asked to prepare a government-issued ID, proof of address (utility bill or bank statement) and some other additional documents based on your country of residence. Please submit relevant compliance certification materials as required. In Jeton we have additional security layers. We will ask you to make a mark ID(Face recognition) and you will go to the Audit process. Once your account is ready you will get notified via confirmation e-mail.
When your account is activated then you will be able to send money online within the SEPA network. These steps were for individual accounts. If you have a business and want to use the SEPA network for your business transactions then there will be additional steps to follow and set up your business account. If you are interested in opening a business account for SEPA transactions, keep reading.
Sepa account in the EU for business
Businesses don’t need a specific account to process their payment on the Sepa network. In order to make transactions within the SEPA network, businesses need to have an account in a financial institution that provides transfers within the Sepa network. If the business has a SEPA account with an IBAN in the country that is located in the SEPA zone then that will be enough to use SEPA services and products.
Your business doesn’t need to be located in the SEPA zone. There a lot of local banks and financial institutions may provide these services for your business. As long as you meet requirements, you might be eligible for SEPA transactions.
The general requirements for SEPA business account in the EUor non-EU include:
Physical EU address of the business
The business needs to be registered in an EU country
Tax compliance of the business in an EU country
Credit check reference
Sepa account in the EU for individuals.
You need to contact the specific bank to know their requirements to open a SEPA bank account. Some of the general requirements include:
Photo of the passport size
Physical address
Company registration number
An introduction letter from a bank or its agent
If you want to register for a SEPA business account with Jeton then you need to follow the same steps that we have indicated above. Also we will ask for additional documents related to your business and tax.
Jeton has been operating in more than 100 countries all over the world also in the SEPA network. Jeton provides the best and fastest solutions for its users. Jeton offers more than bank services. Jeton app has been designed to meet the needs of all types of users. Whether you are a business owner or individual that is looking for compatible and cost efficient solutions for your money transactions, Jeton has something for you. You can move your money across Europe and manage your finances without complex processes.
Jeton offers multi currency accounts and 7/24 customer service. You can exchange your money to over 40 currencies worldwide at competitive rates, ensuring you always get the best value for your money. Discover the various advantages of Jeton. You can save your money as you spend it with Jeton. Jeton customer service is available through Live Chat whenever you need. If you have any additional questions you can also visit our blog.
If you are looking to grow your business within the SEPA zone we strongly recommend you to try Jeton. Open your SEPA business account with Jeton today and take the first steps to your future goals. Visit Jeton.com for more information.
