Single Euro Payments Area (SEPA) explained

If you’ve ever sent money to your family in Europe or paid for something from an EU-based website, you may have come across the term SEPA. It stands for the Single Euro Payments Area, and makes sending and receiving euros across Europe as easy as a local UK bank transfer. In this guide, we’ll explain what a SEPA payment is, how it works now that the UK has left the EU, and what you need to make a SEPA transfer.

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SEPA stands for Single Euro Payments Area, and it is a system designed to facilitate quick and easy electronic payments across Europe. An incoming SEPA payment can be recognised on your bank statement by the sender’s IBAN (International Bank Account Number) and sometimes their BIC (Bank Identifier Code), so you know where the money came from. Used across most of the continent, the idea is that any SEPA payment made from one SEPA country to another follows the same standard format, making cross-border payments just as convenient and cost-effective as domestic ones.

The Single Euro Payments Area is an initiative of the European Union, first launched in 2008. It was initially introduced to make the European economy more competitive by facilitating faster and cheaper money transfers.

Before SEPA, sending money between European countries typically took several days and usually came with fees – even if it was a euro to euro transfer. Each country had its own rules and account number formats, making it confusing to do business or simply transfer money across borders.

SEPA standardised the whole process. Payments within the Single Euro Payments Area now usually arrive within a day and there is very little difference compared to bank transfers within a single country.

A SEPA transfer is a cashless payment made between bank accounts in countries that are part of the SEPA zone. No physical cash is involved, and everything is processed electronically.

To make a SEPA transfer in the UK, you’ll need the recipient’s IBAN and sometimes their BIC. If you’re the one receiving euros, you can typically find your own IBAN and BIC at the top of your bank statement.

Because SEPA transfers are euro-denominated payments, the money is sent in euros, even if your own account is in pounds. Your bank will usually convert it into euros before the transfer goes through.

Once the payment is submitted, the money typically arrives in the recipient’s account within one working day.

When it comes to SEPA in the UK, you’ll find two main types of payments:

1. SEPA Credit Transfers, which is where you send money to someone else’s account, or receive it to your own account, as in a standard bank transfer (but in euros). Typical reasons for this might include:

   • Paying for renovations on a holiday home abroad

   • Receiving a pension from abroad in euros

   • Sending money to family members living in Europe

   • For businesses: paying European suppliers

There’s also an option called SEPA Instant Credit Transfer, where the recipient gets their money within 10 seconds (as long as both banks support it).

1. SEPA Direct Debits. These work the other way around: once you’ve given your permission, a company will collect money directly from your account on set dates.It’s worth noting that SEPA Direct Debits are not the same as UK Direct Debits, as they’re only used for payments within the Single Euro Payments Area. If you’re curious about other payment methods, learn how a standing order works.

There are 41 countries in the Single Euro Payments Area (as of July 2025), including several that don’t have the euro as their official currency. Even in non-euro countries, if you send or receive money via SEPA, the payment will always be in euros.

SEPA countries in the EU: Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Other countries: Iceland, Liechtenstein, Norway, Switzerland, Andorra, Monaco, San Marino, Vatican City, Albania, Montenegro, Moldova, North Macedonia, Serbia, the United Kingdom.

Yes, even though the UK has left the EU, it still belongs to the Single Euro Payments Area, but it is now treated as a third country. What that means for UK customers is:

• You might be asked for more details, like your full address or the BIC of your bank

• Some UK banks may charge a fee for SEPA payments (but this varies – many banks treat them like a local transfer).

• UK businesses dealing with customers in Europe may face extra checks or paperwork

For most personal users, SEPA still works much the same. You may just have to provide a little extra information.

The UK is still part of SEPA, meaning consumers can benefit from:

• Easier payments to and from Europe. Sending or receiving euros across borders is virtually as easy as a local bank transfer.

• Lower or no fees. Most UK high-street banks don’t charge a fee for sending or receiving SEPA payments in euros. However, currency conversion charges may still apply if you’re receiving euros into a pound account.

• Faster transfers. SEPA transfers usually arrive in your account within one working day.

• Simple account details. Whether you’re making or receiving payments for business or leisure, the account can be easily identified with an IBAN and BIC.

Yes, SEPA transfers are generally safe and secure. Because each SEPA country follows the same system, the chances of making mistakes when entering details may be lower. Plus, banks nowadays offer measures such as encryption and one-time passwords to keep your money and personal data protected.

Having said that, no payment system is entirely risk-free. There’s always a slight risk of fraud, especially in the case of SEPA Instant payments. When money is leaving your account immediately, there is very little time to remedy any errors.

The same safeguards you take for UK money transfers also apply with SEPA. You can help protect yourself by double-checking the recipient’s bank details, monitoring your bank account regularly, and taking steps to stay safe when banking online.

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Please note: Raisin UK does not support deposits in euros. All accounts are held in pounds sterling (GBP).

Generally speaking, no – UK banks rarely charge for making SEPA euro payments (but this can vary depending on your bank and account type). However, if the euros are being sent to a pound sterling account, your bank will automatically convert them into pounds. This isn’t always free. Banks may apply a currency exchange fee or markup, which can affect the final amount you receive.

It’s worth checking with your bank to see if any fees or currency charges apply, and potentially switching bank accounts to one with more favourable conditions.

Yes, the UK is still part of the SEPA zone, which means you can send and receive euro payments using SEPA through most UK banks. You might be asked for a few extra details, such as your full address or your bank’s BIC code, when receiving payments from Europe. It could be worth checking with your bank to see what they require, and whether they charge any fees.

SEPA transfers usually appear in the recipient’s account within one working day. However, each bank has different processing schedules, and some may have certain cutoff points for a transfer to arrive in a day. If it’s an option offered by both sending and receiving banks, SEPA Instant payments can arrive within seconds, even if it falls on a weekend.

Both are ways of sending and receiving money between the UK and other countries, but SEPA is for sending euros within Europe, and it’s usually faster and cheaper than SWIFT. SWIFT can be used for international payments in any currency, but it often involves higher fees, and the payments tend to take longer to arrive.

If the country you’re sending money to is within the SEPA region, SEPA is typically the more cost-effective option.