The Single European Payments Area (SEPA) has revolutionised the world of the European payments market and made the entire process much smoother and less risk oriented. The transfer of payments can be an extremely challenging task at times, especially if there are a lot of currencies involved. The task becomes more difficult if the transfer involves more than one state. Transferring money from London to Finland was a very daunting task until SEPA was produced and implemented in the European region.
SEPA allows the transfer of payments in a significantly efficient manner that is secure and safe as compared to transactions done otherwise. SEPA has completely transformed the Credit Transfer and Direct Debit systems of the European region, while the transformation of mobile and online payment is still under process. SEPA allows cashless payments to be made across the European region by using only one account for payment without having to follow through on separate conditions or being restricted due to location. There are numerous factors that have changed for the positive by the use of SEPA for Credit Transfers in the European states, increasing efficiency amongst other characteristics.
SEPA Credit Transfers make it possible for businesses to manage their international account transactions just as easily and quickly as domestic transfers, while staying considerably cost-effective. It lets the retail and corporate clientele handle credit transfers in Euros within the European continent, while following a standard format and set of procedures. SEPA Credit Transfers replaced all existing euro domestic credit transfer systems and local clearings in the European region. The scheme allows for a set of new possibilities, especially for those who are in quest of methods to centralise the handling of accounts and efficient transfers.
SEPA has a wide variety of benefits to offer aside from improving the efficiency of European Credit Transfers including the following:
- As only one account is needed to complete transactions, the collection will cost businesses less.
- As payments become more punctual and amounts are accumulated automatically, businesses have more control of their cash flow. This again increases the efficiency of cash management.
- After the contract has been signed, businesses do not have to undergo any further procedures. This is because all payments can be made using only one account within SEPA.
- Using software, both domestic and international transfers can be made easily while the businesses can overlook the process at all times.
- The SEPA Credit Transfers are made in secure environments and people receive confirmation of payments being made very quickly.
- The availability of detailed payment instructions and the memo date guarantees that all payments are made by their due date and don’t get postponed or lost.
Through the SEPA Credit Transfer scheme, the following features are available:
- The payer and payee along with their banks are identified using the Business Identifier Code (BIC) and the International Bank Account Number (IBAN).
- The beneficiaries receive their funds within the course of one business day after the moment when the payment was executed.
- The payee receives the full amount of the payment, without any hidden costs.
- The transaction costs for the SEPA cross-border payments will be the same as the cost of transactions for parallel national payments.
- The sender and receiver of the payments who are using the SEPA Credit Transfer scheme will only be charged by their own service providers for payment.
SEPA has led to the optimisation of the European payments market significantly. It has helped standardise European trade and has led to a much more efficient, secure and cost-effective payment system for businesses in the UK and elsewhere. There’s various software available that assists in SEPA payments for the countries who are part of the Single Euro Payments Area. For example, AccessPay offer a cloud based SEPA transfer system which revolutionises the world of SEPA payments for the clientele. Its SEPA Credit Transfers makes the entire process of credit transfers simple, quick and easy without any complications. It is also available for receiving and sending electronic payments across the Euro zone.
SEPA Credit Transfers have completely changed the face of transfers in the European region, without causing disadvantages to any industry. There has been a significant increase in the efficiency of all those industries making use of SEPA and SEPA Credit Transfers in particular.
Switching to this system is the right step to take for businesses looking to change their running and be more helpful to their clients in making their financial transfers easier to handle.