The SEPA (Single Euro Payments Area) payment system allows businesses to send and receive payments within the European market with the same level of security and fluidity as domestic transactions. While SEPA payments offer various benefits and advantages, there are some myths surrounding this payment system. Below, we’ll explore the most common myths about SEPA payments.
High commissions
Many people and businesses believe that SEPA payments have high fees per transaction. However, SEPA payments have the same fees as domestic transfers in euros and can even be cheaper or free in some cases.
It is important to highlight that the SEPA regulations establish that payments (in euros) within the Euro Zone must have the same conditions as national transfers, which eliminates or significantly reduces the commissions of such operations.
Only for countries of the European Union
Some people and businesses think that SEPA payments only work between countries within the European Union. However, the truth is that SEPA payments are a system that not only includes countries within the European Union but also includes other countries and states outside the European Union, such as Switzerland, Monaco, Andorra, Iceland, Norway, the United Kingdom, Vatican City, Liechtenstein, and San Marino.
All SEPA payments are instant
Many people believe that SEPA payments are instant. However, the system actually offers two transfer modes: SEPA payments and SEPA Instant payments. These payments differ in certain ways, such as transfer times and limits.
For regular SEPA payments, the transaction is generally settled within one business day, while SEPA Instant payments allow payments to be processed in approximately 10 seconds, provided the amount limit is not exceeded by €100,000.
Only for large companies or businesses
Many companies and businesses believe that SEPA payments can only be used by large corporations. However, the truth is that this payment system allows for transfers, both to individuals and to small, medium, and large companies or businesses.
It is important to highlight that the objective of the SEPA system is to make transfers and payments as simple and economical as possible, like domestic payments, regardless of the size of the consumer. SEPA payments are designed to benefit all users, including individuals, small and medium-sized enterprises (SMEs), self-employed workers, and large corporations.
Incompatible with batch payments
Some businesses believe that SEPA payments cannot be used for batch payments or that they are simply incompatible with this system. However, the truth is that SEPA payments are designed to facilitate this type of transaction, both for businesses and individuals, since SEPA uses the ISO 20022 XML standard for batch payments, which allows banks and businesses to process large volumes of transactions efficiently and uniformly across the different countries in the SEPA zone.
Batch payments (which involve processing multiple transactions in a single file or transfer) are a key feature of the SEPA system, especially for recurring or mass payments, such as payroll payments, supplier payments, recurring payments, and direct debits.
What do you think about this topic? Would you like to learn more about the SEPA payment service?
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