The proliferation of the euro currency and the increase in cross border trade throughout Europe hastened the need for a common financial payment structure. Ergo the SEPA format for the seamless transfer of cross border payments was established and agreed by the EU member states.
SEPA (Single Euro Payments Area) was also put in place to counteract the need to pay employees (credit transfers) who may have bank accounts outside the primary source of company accounts.
Now seamless payment can be made throughout the European Union and other territories, such as Vatican City. Transfers and payments also include transfers between banks within individual Euro zone countries, 34 countries in total.
What is a SEPA Payment
Essentially SEPA is a form of financial instructions, set to a standard which all the banks throughout the EU understand, but only countries that have embraced the Euro. The transfers come in the form of credit transfers and direct debits.
Other Benefits & Charges Related to SEPA
The transfers are guaranteed to arrive as soon as the .xml drawn down date is assigned.
Banks cannot take deductions on payments (however, there are fees associated with taking direct debits, which will appear on your bank statements as bank fees).
Essentially, SEPA is fast, safe and seamless. The primary concern for business owners is that you must get approval to take direct debits from your bank and then every time you want to take a payment from a client, you must generate an .xml SEPA file. And this is where SEPA XML GENERATOR can help…we can also help with regards to Credit Transfers, such as a Payroll file or say an Insurance company that needs to send credit transfers to Insurance client. Pet Insurance might be a simple example, a pet owners makes a claim and then the pet insurance company uses SEPA XML GENERATOR to create a sepa file that tells the bank to send funds to this pet insurance client.
How we can help?
Once your business is registered to take direct debits or your business would like to generate a credit transfer file, you need software to generate a .xml SEPA file which you submit online on your Online Banking account. Try our software today for FREE.