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SEPA payments

SEPA Account-to-account payments involve digital payments between payments accounts, without the use of payment cards. These include traditional transfers, instant payments, and direct debits. Account-to-account payment orders are usually sent digitally, via online banking and mobile banking, and bundled into digital files by companies.

What are SEPA account-to-account payments?

SEPA Account-to-account payments are electronic payments in which money is transferred digitally from one bank account to another. This is done via payment orders that are given remotely, for example via internet banking or a mobile app. The money is then processed by payment service providers and banks, without any physical cash being involved.

Main forms of SEPA account-to-account payments

  • European Credit Transfer
    The standard method for transfers within Europe. The payer issues the payment order and the amount is transferred from the payer’s payments account to the beneficiary’s payments account. Both payments accounts have an IBAN account number.
  • European Direct Debit
    The payer gives a one-time authorization in advance to an organization to debit amounts from their payments account. This is suitable for recurring payments such as subscriptions, rent, energy bills, and taxes. However, the authorization can also be issued for a single direct debit, for example for a one-time donation or online purchase.

Features and benefits

The different forms of SEPA account-to-account payments are distinguished on the basis of:

  • Initiator: the payer (transfer) or the recipient (direct debit).
  • Speed: from a few hours to seconds (instant payments).
  • Confirmation: immediate feedback possible with instant payments.