The Single Euro Payments Area (SEPA) harmonises the way cashless euro payments are made across Europe. It allows European consumers, businesses and public administrations to make and receive the following types of transactions under the same basic conditions:
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• credit transfers
• direct debit payments
• card payments

​This makes all cross-border electronic payments in euro as easy as domestic payments.

EU Regulation on SEPA and Directive on Payment Services

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The Single Euro Payments Area (SEPA) is where 450 million citizens and over 20 million businesses and European public authorities can make and receive payments in euro under the same basic conditions, rights and obligations, regardless of their location.

SEPA covers the whole of the EU. It also applies to payments in euros in other European countries: Andorra, Iceland, Norway, Switzerland, Liechtenstein, Monaco, San Marino and Vatican City State.
The advantages of a single euro payments area include:
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• a single system for both domestic and cross-border bank transfers
• allowing cross-border transactions by direct debit, that is to charge directly an account in one country for services provided in another country
• allowing people working or studying in another SEPA country to use an existing account in their home country to receive their salary or pay bills in the new country
• ensuring cheaper, safer and faster cross-border payments and more transparent pricing thanks to the single set of payment schemes and standards

Click to read the current version

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Rules on charges for cross-border payments in euro

The Regulation (EC) No 924/2009 on charges for cross-border payments in euro was also adopted in the context of SEPA. It requires banks to apply the same charges for domestic and cross-border electronic payment transactions in EU (euro and non-euro countries).
It was later amended by the SEPA regulation, which further integrates the market for payment services in euro.

The principle of equal charges both for national and cross-border payments applies to all electronically processed payments in euro, including:

• credit transfers
• direct debits
• withdrawals at cash dispensers (ATMs)
• payments by debit and credit cards
• money remittance

​The rules also require that consumers are informed of the cost of a currency conversion before they make a payment abroad in a different currency than their home one.

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Click to read the current version