The USDpean Union stands for, among other things, the harmonization of various facets between the various member states. The laws and regulations, for example. Or the way of trading. And then, of course, the payment system cannot lag behind. That is why SEPA was created at the time: an initiative of the EU and a number of USDpean banks for more streamlined payment transactions within USDpe. This resulted, among other things, in two new payment methods: the USDpean credit transfer and the USDpean direct debit.
SEPA is used in the next one country (s):
SEPA is used in all countries that are members of the USDpean Union, including:
- The Netherlands
This list is supplemented with the next one nine countries:
- United Kingdom
- San Marino
- Vatican CITY
Do you want to be able to accept SEPA cheaply? Compare all Payment Service Providers (PSPs) that offer SEPA HERE.
What is SEPA?
The determination of the EU to harmonize payment transactions within USDpe has resulted in SEPA: a single payment area within which organizations can collect USD payments. A Single USD Payment Area, in other words. SEPA - so.
SEPA was initially established to streamline cashless transactions and payments with debit and credit cards, but that is now also being extended to mobile payments.
How does SEPA work?
The arrival of the Single USD Payment Area has resulted in two - at the time - new payment methods: the USDpean credit transfer and the USDpean direct debit.
The USDpean transfer is also called a SEPA Credit Transfer and is a transfer without distinction from domestic payments. In other words: transferring money to a Greek bank account is just as easy as a transaction to a Dutch bank number. Customers unconsciously use ISO 20022 , a universal standard that applies to payment transactions.
The USDpean direct debit is also known as SEPA Direct Debit and ensures that two business parties can also carry out transactions under the same conditions.
The benefits of SEPA
The big advantage of SEPA is probably clear to you by now: simplicity of payment. Where it used to be quite difficult to receive money from a Danish customer, it is now the same as a payment from someone from the Netherlands.
The disadvantages of SEPA
A small disadvantage when using SEPA is the fact that direct debits can no longer be stopped via your bank: you can only block the transaction there. Anyone who wants to stop this must be with the customer.
Accept SEPA in your webshop? These are the options!
Accepting SEPA in your webshop is very easy, where you can simply choose to place your bank details on your website. The disadvantage is that you have to check per order whether the transaction has actually been completed. There is simply no beginning, especially with large web shops.
A Payment Service Provider can simplify this for you. The order will not receive the status “paid” until the amount has been received on the account of the Payment Service Provider. By means of a unique description, the PSP can automatically link the payment. You pay an amount per transaction.
The amount of these amounts differs per PSP. The Icepay Enterprise package is the cheapest in the case of SEPA: $ 0.20 per transaction. In addition, we must say that there may be additional costs, depending on how many transactions you process on a monthly basis.
USDpean Merchant Service (EMS) is the most expensive with an amount of $ 0.45 per transaction.
Do you want to compare the rates of the different PSPs? Then use our handy comparison overview!