This article explains what SEPA is, how it works, and what you need to know to send and receive euro payments across Europe.
What is SEPA?
Which countries are part of SEPA?
How do SEPA bank transfers work?
SEPA transfer types explained
SEPA Instant Credit Transfers (SCTInst)
SEPA Credit Transfers (SCT)
SEPA Core Direct Debits (SDD)
Key information for SEPA transfers
Transfer times
Fees and charges
Transfer limits
SEPA transfers at Holvi: A summary
What is SEPA?
Chances are, you’re already using SEPA without even realising it!
The Single Euro Payments Area (SEPA) is a European initiative that simplifies euro payments across Europe, making them as fast and seamless as local bank transfers.
SEPA simplifies euro payments by making them:
- Fast – Transfers typically take one business day or are instant.
- Secure – All payments are subject to strict banking and compliance standards.
- Standardised – All transfers use the same format (IBAN/BIC), regardless of the country.
Whether you're paying a supplier in Spain or receiving a payment from a client next door, SEPA ensures that your euro transfers are smooth, reliable, and cost-efficient.
Which countries are part of SEPA?
The SEPA zone currently includes 40 countries, covering both EU and non-EU members. You can send and receive euro payments between these countries just like a local transfer - no special paperwork needed.
List of SEPA countries
Albania, Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaco, Montenegro, the Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom and Vatican City.
How do SEPA bank transfers work?
SEPA payments use a unified system based on the International Bank Account Number (IBAN) and, in some cases, the Bank Identifier Code (BIC) to securely route euro payments between banks.
To send or receive a SEPA payment:
• Both the sender and recipient must hold bank accounts in SEPA countries.
• Both accounts must use IBAN-formatted numbers.
💡 SEPA transfers are euro-only
Even if the local currency is different, a SEPA transfer will always be processed in euros.
If you’d like to make a foreign exchange payment, you’ll need to send a SWIFT transfer.
See also: How do I send a bank transfer?
What are the different types of SEPA transfers?
There are three main types of SEPA transfers, each suited to different needs. The key differences lie in who initiates the payment, processing speed, and use cases.
Holvi supports all three major SEPA payment types:
| SEPA Instant | SEPA Credit Transfer | SEPA Direct Debit | |
|---|---|---|---|
| Speed | Under 10 seconds | 1-2 business days | >2 business days |
| Initiated by | Sender (payer) | Sender (payer) | Recipient (payee) |
| Best for | Immediate fund transfers, urgent payments | One-off payments, invoices, payroll | Recurring payments like rent or bills |
SEPA Instant Credit Transfer (SCT Inst)
A new, real-time version of the standard SEPA Credit Transfer. Payments arrive in seconds, even on weekends or holidays.
Typical use cases:
Urgent payments, last-minute invoices, or instant peer-to-peer transfers.
How it works:
Once the sender enters the IBAN and authorises the payment, it’s processed instantly (as long as both banks support SEPA Instant).
Example:
You need to pay a €500 invoice due today. Not wanting to risk a late fee, you use SEPA Instant to send it from your Holvi account in Finland to your supplier’s Austrian account - and they receive it in seconds. Problem solved, no delays.
💡 SEPA Instant transfers are processed in seconds, 24/7 – even on weekends and holidays
Both payment service providers must support SEPA Instant for the payment to go through in real time.
SEPA Credit Transfer (SCT)
The most common SEPA payment type — used for everyday transfers such as paying invoices, salaries, or sending money to friends or business contacts.
Typical use cases:
One-off payments, invoice settlements, payroll.
How it works:
Enter the recipient’s IBAN (and BIC if required), payment details, and confirm. Funds typically arrive by the next business day, though processing times can vary depending on your bank, holidays, or additional compliance checks.
Example:
You send €200 from your Holvi account in Germany to a client’s account in Latvia. Since both accounts are within SEPA, the transfer is handled like a domestic one - fast and frictionless.
💡 SEPA Instant and SEPA Credit Transfers are generally final once processed
Always double-check recipient details before confirming a payment.
SEPA Direct Debits (SDD)
Allows a recipient (like a service provider) to collect payments automatically from your account, based on a signed mandate.
Typical use cases:
Recurring charges like subscriptions, rent, utilities, or loan repayments.
How it works:
1. Mandate signed by payer: The payer authorises the recipient to withdraw funds by signing a mandate.
2. Automatic collection: The recipient can then collect agreed payments automatically on agreed upon-dates - no manual action needed from the payer.
Example:
You set up a direct debit with your coworking space. Each month, the rent is automatically deducted from your Holvi account without you having to lift a finger - no reminders, no late fees.
Holvi supports SEPA Core Direct Debits. To activate direct debits on your Holvi account, please contact our support team.
Key information for SEPA transfers
Transfer times
• SEPA Instant: 10 seconds
• SEPA Credit Transfer: 1–2 business days
• SEPA Core Direct Debit: Min. 2 business days
Fees and charges
At Holvi, SEPA transfers are free up to a certain number per month for all plans except Flex. After that, a small per-transfer fee will apply. Check your plan limits here.
💡 About cross-currency transfers
Sending euros to a country with a different local currency (e.g. Sweden or the UK) may involve conversion fees. Charges depend on your Holvi plan and the recipient bank’s exchange rate.
Transfer limits
The maximum amount you can transfer at one time depends on the type of SEPA transfer you choose.
• SEPA Instant Transfers: Maximum of € 999,999,999.99 (payment service users can set their own limits per day and/or per transaction)
• SEPA Credit Transfers: Maximum of €999,999,999.99
• SEPA Direct Debits: No fixed maximum — limits are set by individual banks and defined by the signed mandate.
Different banks may apply additional limits based on account type, security considerations, or regulatory requirements.
SEPA transfers at Holvi summarised
Holvi supports all major SEPA transfer types:
• SEPA Credit Transfers for everyday euro payments
• SEPA Instant Transfers for real-time transactions
• SEPA Core Direct Debits for automated recurring charges
With Holvi, you can:
• Send and receive euro payments across the SEPA zone.
• Enjoy transparent pricing with no hidden fees (within plan limits).
• Enjoy instant payments 24/7 with SEPA Instant.
• Easily manage recurring payments with SEPA Direct Debits.
Still have questions?
For more information, visit our SEPA support article collection or contact Holvi Support — we’re here to help.