More control and less work. Even in your industry.
Fast and secure invoice processing for every organization.
Fast and secure invoice processing for every organization
A SEPA payment is a euro-denominated bank transfer between accounts within the Single Euro Payments Area. For US-based businesses operating in Europe, SEPA simplifies cross-border euro transactions, making them as straightforward as local payments. On this page, you’ll find out what SEPA means for your business.
Table of contents:
The Single Euro Payments Area (SEPA) was introduced in 2008 by the European Union to harmonize euro payments across Europe. Before SEPA, international euro transactions were often slow and expensive. SEPA solves this by unifying transfers, direct debits, and payment cards under one standardized system.
Goals of SEPA:
There are two main types of SEPA payments:
| Type | Description | Examples |
|---|---|---|
| SEPA Credit Transfer (SCT) | Single euro transfer between two IBAN accounts within the SEPA area | Invoice payment |
| SEPA Direct Debit (SDD) | Automatic debit based on prior customer authorization from the customer | Subscriptions, utility bills, memberships |
SEPA payments follow a clearly structured process.
For a SEPA Credit Transfer (one-time transfer):
For a SEPA Direct Debit (automatic debit):
Thanks to SEPA, this process is consistent across all participating countries—reliable, fast, and efficient.
SEPA benefits both businesses and consumers:
According to the official European Payments Council document (EPC409-09, version 7.0, published May 22, 2025), the SEPA area includes:
This brings the total to 41 countries.
Some overseas and crown territories such as Guernsey, Jersey, and Isle of Man are also part of SEPA. Including these, the total exceeds 45 territories.
With Payt, you can automate SEPA direct debits (SEPA Direct Debit) to collect outstanding invoices faster and without manual work. As soon as a customer provides authorization, Payt automatically initiates the debit on the agreed due date. This improves your cash flow and reduces administrative hassle.
In the platform, you always have real-time insight into who has paid and who still needs to pay. This helps you stay in control of your receivables and save valuable time.
SEPA credit transfers are usually processed within one business day. If you submit the payment before your bank’s cut-off time, the recipient may receive the funds on the same day, but typically it’s credited the next business day. Same-day delivery isn’t guaranteed, but SEPA ensures fast and reliable euro transactions.
A SEPA payment is made via bank transfer or direct debit within the SEPA area. You enter the recipient’s IBAN, the amount in euros, and an optional reference. With Payt, you can automate these payments so your customer pays on the agreed due date.
A SEPA Credit Transfer is usually processed within one business day. If submitted before your bank’s cut-off time, the beneficiary often receives the funds on the same or next business day. With Payt, you track the payment status in real time.
SEPA payment files are XML files that contain instructions in SEPA format. These are generated by your ERP or accounting software and submitted to the bank. Payt simplifies this process by generating and sending SEPA direct debits automatically.
Yes, but processing will only start on the next business day. Banks process SEPA transactions only on working days. With Payt, you can schedule in advance, so payments are debited exactly on the right day—even after the weekend.
