SEPA – What is SEPA?
SEPA – short for the Single Euro Payments Area – is an initiative of the European Union which aims to simplify cashless euro payments and bank transfers.
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The main aim of SEPA is to turn national Eurozone markets into a single, Europe-wide market by improving the efficiency of cross-border transactions.
How does SEPA work?
SEPA allows consumers, business and public administrations to make credit transfers, direct debit payments and credit card payments in across Europe as easily as domestic payments. It only applies to payments or transfers made in euros.
Customers can make payments into euros to anyone in the participating countries, using one single bank account and following a single set of payment instructions. Anyone who has a bank account within a Eurozone country can receive salaries and payments across the entire Eurozone.
By introducing shared financial standards, procedures and infrastructure, SEPA aims to reduce the overall cost of moving capital across the region.
Which countries are covered by SEPA?
The EU’s SEPA initative covers the 28 member states of the European Union, including the 19 states that are part of the Eurozone and the nine states which are not in the Eurozone. SEPA also applies to the four member states of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) as well as Monaco and San Marino.
Some of these countries have special territories which are not covered by SEPA. for example, British Overseas Territories.
Cross-border transactions and Debitoor
Do you have customers in the EU? With Debitoor invoicing software it’s easy to send invoices abroad. Debitoor supports intra-Community transactions, meaning that any invoices you create with Debitoor comply with EU VAT regulations and the reverse charge procedure.
Plus, you can send invoices in different languages and currencies, making it even easier to reach customers around the world.