SEPA Credit Transfer

Introduction to SEPA Credit Transfer

SEPA Credit Transfer (SCT) was the first SEPA scheme to be introduced in 2008. SEPA Credit Transfers are funds transfers between PSPs that both have IBAN codes. These transfers are conducted in euros and are used widely for consumer payments, similar to Bacs Direct Credit in the UK. All banks and PSPs in the SEPA zone are required to support the scheme.

To learn more about the SEPA zone and its various payment schemes, see our guide to SEPA payments.

• Year introduced: 2008
• ‍Operated by: European Payments Council
• ‍Participation: All PSPs in the SEPA zone
• ‍Availability: Business days
• ‍Settlement: Up to two business days
• Maximum amount: €999,999,999
• ‍Fee per payment: €0.20 (approx.)

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How SEPA Credit Transfer works

SCTs are what’s called a push payment, meaning the payment is sent by the debtor (or payer) to the creditor (or payee). SCTs are mostly one-off payments, however debtors can set up recurring SCTs via standing orders configured with their bank. SCTs are commonly used for peer-to-peer payments, invoice payments, salary payments, pensions, and social benefits.

In order to initiate an SCT, the debtor must specify the recipient's IBAN, name, and the amount. BIC or SWIFT codes are not required. There’s no minimum amount for a single payment and the maximum amount is €999,999,999. SEPA rules prohibit any fees being deducted from the payment, meaning the full amount is always credited to the recipient’s account.

SCTs can be recalled for up to ten business days in the case of a duplicate payment or technical error and senders can request a refund for up to thirteen months in the case of suspected fraud. Banks and PSPs set their own fees for processing SEPA Credit Transfers but the per-transaction cost is usually around €0.20.

What is the availability of SCT?

Each PSP (or bank) participating in SCT applies its own cut-off times. If a payment is initiated prior to the cut-off time then it will be credited to the recipient’s account on the same business day, otherwise it will arrive the following business day.

These transfers are only processed on business days. If a payment is submitted on a non-business day, such as a weekend or public holiday, it will be sent on the next business day.

How does SCT remittance information work?

The debtor can append a reference to each SCT payment. Unstructured remittance information is commonly used for SCTs and up to 140 characters can be appended per transaction. The reference field should include relevant information about the payment, such as invoice numbers or other identifiers that help the recipient recognize the transaction.

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Benefits and drawbacks of SEPA Credit Transfer

SEPA Credit Transfer is much cheaper than traditional cross-border payments on average, reducing transaction costs for businesses and individuals. It enables relatively low-cost payments throughout the SEPA zone that are credited to the recipient's account by the next business day. The standardized rules and processes under SEPA have drastically streamlined cross-border euro payments, reducing the time and effort spent on processing transactions.

Unlike SEPA Instant Credit Transfer, SEPA Credit Transfer does not support real-time settlement and transactions may take up to two business days to settle.