SEPA transfer
WHAT DOES SEPA MEAN?
SEPA is the abbreviation of Single Euro Payments Area.
SEPA is a common European payment system that enables the sending and receiving of euro-denominated payments within the European Economic Area (EEA), using uniform standards and rules.
SEPA members include the countries of the European Union, the member states of the European Free Trade Association, and other European countries.
(List of SEPA countries: http://www.europeanpaymentscouncil.eu/index.cfm/knowledge-bank/epc-documents/epc-list-of-sepa-scheme-countries/)
HOW DOES A SEPA CREDIT TRANSFER DIFFER FROM A TRADITIONAL FOREIGN CURRENCY TRANSFER?
A SEPA transfer is a standardized transfer format designed for euro payments between countries participating in the SEPA payment scheme, with predefined data content requirements.
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In the case of a SEPA transfer directed to an EEA Member State, the amount of the transfer is credited to the beneficiary’s payment service provider’s account by the end of the business day following the receipt of the payment order.
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The use of the International Bank Account Number (IBAN) is mandatory.
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Both the payer and the beneficiary bear only the costs charged by their own payment service provider; therefore, the only permitted charging option is shared costs (“SHAR”).
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The fee of the transfer may not be deducted from the transferred amount; the full amount must be sent and credited to the beneficiary’s account.
WHEN CAN THE SEPA PAYMENT METHOD BE USED?
If a customer initiates a foreign currency transfer outside the Bank and all of the following conditions are met:
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The currency of the transfer is EUR;
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The beneficiary’s account number is provided in IBAN format (IBAN calculator available, e.g., at www.ibancalculator.com);
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The charging option is shared (“SHAR”), meaning each party bears the costs charged by its own bank (if the payment order meets the other four conditions, the Bank will automatically change the charging option to “SHAR” even if the customer selected a different option);
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The beneficiary’s payment service provider is also a SEPA participant, either directly or indirectly;
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The transfer is not submitted as urgent.
WHEN IS THE USE OF SEPA TRANSFER MANDATORY?
After 31 October 2016, the Bank may execute euro-denominated transfer orders within the European Union, including Hungary (except for intra-bank and urgent transfers), exclusively as SEPA transfers.
Therefore, such transfers must comply with the requirements described above. If the customer has not selected the “SHAR” charging option but the order otherwise meets the SEPA requirements, the Bank will not reject the order but will execute it in accordance with applicable legal provisions.
WHICH FORM MUST BE COMPLETED FOR A PAPER-BASED SEPA TRANSFER?
The foreign currency transfer order form must be completed, i.e. the same form used for other foreign currency transfers.
IN WHICH MENU CAN A SEPA TRANSFER BE ENTERED VIA ELECTRONIC CHANNELS?
The order can be recorded in the SEPA Transfer menu.
If you are unsure, you may initiate the order via the Foreign Currency Transfer screen. If the order details meet the SEPA requirements described above, the system will automatically redirect you to the SEPA Transfer menu, where you can finalize and save the transaction.
Detailed on-screen guidance regarding the correct submission process is available on our website.
THE IBAN ACCOUNT NUMBER
IBAN stands for International Bank Account Number. Its length and structure vary by country (the Hungarian IBAN consists of 28 characters), but it always begins with the two-letter country code.
The IBAN was gradually introduced from 1999 in order to standardize payment instruments within the European Union. Hungary joined the group of IBAN-using countries on 1 January 2003, making it mandatory for Hungarian payment service providers to introduce and verify IBAN-format account numbers.
USE OF IBAN
IBAN is also used by countries outside the EEA, including non-European countries. The use of IBAN facilitates the fast and automated processing of international transfers.
Although mandatory only for SEPA transfers, the use of IBAN is strongly recommended in all cases where available.
Regardless of the destination country, if the beneficiary has an IBAN account number, it is recommended to provide it in the payment order. If a transfer is sent to a country where IBAN is used but the account number is not provided in IBAN format, the beneficiary’s bank may reject the transfer or charge an additional fee, which the Bank may subsequently debit to the payer’s account.
WHAT DOES “IBAN-ONLY” MEAN?
After 31 October 2016, it is sufficient and mandatory to use the International Bank Account Number (IBAN); providing the beneficiary bank’s BIC (SWIFT) code is no longer required for SEPA foreign currency transfer orders.
WHAT CONFIRMATION DOES THE BANK ISSUE FOR A SEPA TRANSFER?
A bank confirmation.
As SEPA transfers are transmitted and processed in XML file format, after 31 October 2016 the Bank is unable to issue a SWIFT copy for such transfers.
The Bank charges the fee specified in the applicable Schedule of Conditions under Account Management Services for issuing a bank confirmation.
WHAT VALUE DATE APPLIES TO A SEPA TRANSFER?
For SEPA transfers directed to an EEA Member State and not requiring currency conversion, the amount including the commission is blocked upon receipt of the order, debited from the payer’s account on the business day following receipt, and credited to the beneficiary’s payment service provider’s account.
URGENT EURO TRANSFERS WITHIN THE EEA
In the case of urgent euro transfers directed to an EEA Member State, the order is executed via the T2 system.
If no currency conversion is required, the amount is credited to the beneficiary’s account on the same day the order is received.
Submission cut-off times and the surcharge applicable to urgent transfers are specified in the applicable Schedule of Conditions. Orders submitted after the cut-off time will be rejected. Execution of urgent transfers is subject to individual assessment.
SUBMISSION OF BULK AND SINGLE SEPA TRANSFER ORDERS IN ISO 20022-COMPLIANT XML FILE FORMAT
After 31 October 2016, the Bank provides an interface for electronic submission of XML files for customers other than consumers and micro-enterprises.
For technical details and conditions of use, please contact your relationship manager.
IS THERE A DIFFERENCE IN FEES BETWEEN SEPA AND OTHER FOREIGN CURRENCY TRANSFERS?
In accordance with applicable legislation, the Bank applies different fees for euro transfers directed to EEA countries. In other cases, the standard foreign currency transfer fees apply.
For example, if the beneficiary’s country is Albania (a SEPA member country but not an EEA Member State), the standard foreign currency transfer fee will be charged.
