D-2-4- The Sepa transfer and its advantages and drawbacks


2-4-1- The Sepa transfer: definition

The Sepa transfer is the logical result of the changeover to a single currency. In 2009 the ECB (European Central Bank) presented the SEPA project, its impact on various stakeholders and the expectations for the Euro system. The objective was to create a full range of payment tools for the Eurozone and third-party countries seeking transactions within Europe.

This mode of payment provides companies and individuals, a payment solution with the same terms all over Europe. The currency used is, of course, the Euro. The SEPA transfer should ultimately be the only mode of transfer for international transactions within the European Community.

Like the Swift transfer, the SEPA transfer takes place via secured, electronic connections.

2-4-2- The Sepa transfer: advantages

  • No limit on the amount,
  • The faster processing time of intramural transfers ,
  • No transfer fees,
  • companies no longer need accounts in each country in order to make local-level transfers.

2-4-3- The SEPA transfer: drawbacks

Especially if used as the sole transfer mode, the SEPA transfer, like all transfers, should be used with a payment against delivery of the goods in order to avoid legal disputes.