GLOSSARY

SEPA (Single Euro Payments Area)

SEPA definition

The Single Euro Payments Area (SEPA) allows businesses, individuals and other institutions to make cashless euro payments, such as credit transfers and direct debits, across the European Union and certain non-EU countries. These payments are processed with the same speed, security, and efficiency as domestic transactions.

Initially introduced for credit transfers in 2008, followed by direct debits in 2009, SEPA was fully implemented by 2014 in eurozone countries, with non-euro SEPA countries following by 2016. Nowadays, the SEPA region consists of the 27 EU member states and the other countries in the European Economic Area (EEA), namely Iceland, Liechtenstein, Norway, Switzerland and Monaco.

SEPA: Good to know for SMEs

Since SEPA transfers are processed like local transactions, they offer SMEs a significantly more cost-effective alternative to traditional cross-border payments. Additionally, SEPA ensures enhanced protection of sensitive data through advanced encryption technologies, supported by the requirements of the PSD2 directive.

How to avoid high transaction fees?

amnis is a financial service provider that allows businesses to open a single account, giving them access to local payment systems like SEPA, whether they are local enterprises or global corporations. With amnis, there’s no need to open separate foreign currency accounts at your local bank. You can manage over 20 currencies through a single interface. Additionally, you can open local IBAN accounts in your company’s name in key global markets, even without a physical presence there.

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Explore related topics

ACH

ACH, or Automated Clearing House, is a local payment route in the United States that facilitates electronic money transfers between banks. It requires a local bank account or the use of local payment providers. ACH payments enable financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard. It’s commonly used for direct deposits, bill payments and other bank-to-bank transfers within the United States.

ACH payment

ACH payments are processed through the local ACH network in the United States, requiring a local bank account or the use of local payment providers. This method allows financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard.

BIC (Bank Identifier Code)

The Bank Identifier Code (BIC) is an internationally valid bank sort code defined by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Since the BIC code is issued by SWIFT, it is often also referred to as the SWIFT code.

Credit card

A credit card is a payment card that enables users to make purchases or withdraw cash using borrowed funds, rather than money from their own bank account. Unlike a debit card, which instantly deducts the transaction amount from a linked account, a credit card allows users to borrow up to a set limit and repay it later, usually with interest.

Debit card

A debit card is a payment card that enables users to make purchases or withdraw cash directly from their bank account, such as a checking or savings account. Unlike a credit card, which relies on borrowed funds, a debit card immediately deducts money from the user’s account when a transaction is made.

MT103

An MT103 is a standardised payment message issued by the bank within the SWIFT network, serving as an official confirmation of a completed transfer. It includes all relevant payment details, such as the date, amount, currency, and information about the sender and recipient. The MT103 document thus provides a reliable basis for transactions requiring payment confirmation, such as deliveries or services.

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About amnis

amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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