SEPA

SEPA (Single Euro Payments Area): a single payment area for the euro. It includes the EU countries and a number of European countries outside the EU. Within the area, a euro transfer from one country to another works under the same rules and at roughly the same price as a domestic transfer.

Types of transfers

• SEPA Credit Transfer (SCT): a standard euro transfer, executed no later than the next business day.
• SEPA Instant: an instant transfer, available around the clock.
• SEPA Direct Debit: a debit with the payer’s consent, for recurring payments. For settlements between companies there is a separate B2B scheme.

SEPA messages use the ISO 20022 format. The beneficiary’s key detail is the IBAN. A BIC is often not required within the area, but it is usually shown on the invoice.

Where it comes up in a payment from Russia

Russian banks do not participate in SEPA: the area brings together only banks from European countries. A euro payment from Russia travels to a European bank through a chain of correspondent banks or through an agent. If the payment completes inside the area, the last leg to the supplier’s bank goes as a standard SEPA transfer.

What to watch for

• Check the IBAN against the invoice character by character: an error in it leads to the payment being returned.
• European banks check the payment purpose and the origin of funds in detail. The purpose must match the contract and the invoice.
• SEPA works only with the euro. If the supplier has invoiced in another currency, that is a different route.

For a euro payment, we select a route that works on the payment date. The rate and the fee are written in the payment order before the roubles are debited. More on the Route selection page.