When you send or receive a bank transfer, it travels through one of two systems: SEPA or SWIFT. Which one is used depends on where the other account is and which currency the payment is in. It affects how long the payment takes, what it costs and which details you need.
💡 In short
- SEPA is for euro (€) payments between accounts in the SEPA zone. You only need the recipient’s IBAN and name. Payments typically arrive within 1 business day, or within seconds with SEPA Instant, and they’re free within your plan’s limits (€0.25 each on Holvi Flex).
- SWIFT is for payments outside the SEPA zone, or in currencies other than euro (€). You also need more details, including the recipient’s BIC. Payments often arrive the same day but can take up to 5 business days, and there are fees along the way.
What is SEPA?
SEPA stands for Single Euro Payments Area. It’s an agreement between European countries that makes euro bank transfers work the same way everywhere in the area, whether you’re paying someone in the same town or in another country. A transfer from Finland to Spain is no different from a transfer from Helsinki to Tampere.
The SEPA zone covers all EU countries plus a few others, such as Norway, Switzerland and the United Kingdom. See the full list of SEPA countries.
There are two kinds of SEPA transfer:
- SEPA transfer (also called SEPA Credit Transfer). Processed on business days, usually arrives within 1 business day.
- SEPA Instant. Arrives within seconds, 24/7, including weekends and holidays, as long as both banks support it. Sending and receiving SEPA Instant payments
SEPA also covers direct debits, where a company collects money from your account with your permission. See How direct debits work at Holvi.
Learn more: What are SEPA payments?
What is SWIFT?
SWIFT is a global messaging network that banks use to tell each other about payments. It connects more than 11,000 banks in over 200 countries. When SEPA can’t be used, because the other account is outside the SEPA zone or the payment isn’t in euro, the payment goes through SWIFT instead.
SWIFT doesn’t move the money itself. It carries the payment instruction from your bank to the recipient’s bank, often via one or more intermediary banks (also called correspondent banks) along the way. Each bank in the chain handles the payment on its own schedule, which is why SWIFT payments take longer and why the amount that arrives can be lower than the amount sent.
Learn more: What are SWIFT payments?
SEPA and SWIFT side by side
| SEPA | SWIFT | |
|---|---|---|
| Where | Between accounts in the SEPA zone | 60 countries worldwide with Holvi. See Overview of international payments in Holvi |
| Currency | Euro only | Euro and 17 other currencies, including euro to countries outside the SEPA zone |
| Details you need | Recipient’s IBAN and account holder name | Recipient’s name and address, IBAN or account number, bank’s BIC (SWIFT code), and sometimes a local bank code such as a routing number or sort code |
| How long it takes | Within 1 business day, or within seconds with SEPA Instant | Most arrive the same day, but can take up to 5 business days |
| Fees | Free within your plan’s limits (€0.25 each on Holvi Flex) | A fixed service fee plus a currency conversion fee, depending on your plan, and possible intermediary bank fees. See current SWIFT fees |
| Amount that arrives | Always the full amount | May be lower than the amount sent, depending on who pays the fees |
| Name check before sending | Yes. The recipient’s name is checked against the IBAN. How the name check works | No |
Which one should I use?
To make a SEPA transfer in Holvi, select “Bank transfer”. To make a SWIFT transfer, select “International transfer”. Don’t worry – we’ll let you know if your SWIFT transfer could be a SEPA transfer instead.
- Euro (€), to an IBAN in the SEPA zone → SEPA transfer.
- Any other currency, or euro to an account outside the SEPA zone → SWIFT transfer.
The same applies to payments you receive. If someone pays you in euro from a SEPA-zone bank, it’s a SEPA transfer. If they pay you from outside the SEPA zone or in another currency, it’s a SWIFT transfer, and they’ll need your BIC as well as your IBAN. How to receive international payments (SWIFT)
Examples
| Currency | Payment destination | Transfer type | Fees |
|---|---|---|---|
| Euro (€) | France | SEPA | Free within plan limits (€0.25 on Flex) |
| Euro (€) | United Kingdom | SEPA | Free within plan limits (€0.25 on Flex) |
| Pound (£) | United Kingdom | SWIFT | SWIFT service fee + currency conversion fee (no conversion fee if sent from a GBP currency account) |
| Euro (€) | Hong Kong | SWIFT | SWIFT service fee only |
SWIFT fees depend on your plan. See current SWIFT fees per plan. Holvi Business plans in Finland include 5 SWIFT transfers per month.
💡 Not sure which zone the other bank is in?
Look at the first two letters of their IBAN. If the country is on the SEPA country list and the payment is in euro, it’s SEPA. If the account has no IBAN at all, for example a US or Australian account, it’s SWIFT.
Tips for SWIFT payments
- Double-check the details. SWIFT payments can’t be recalled as easily as SEPA payments, and there’s no name check, so a typo in the account number or BIC can mean a long wait while the money is returned.
- Agree on who pays the fees. If you’re invoicing a customer outside the SEPA zone, say on the invoice whether you expect to receive the full amount. Read about OUR, SHA and BEN.
- Allow extra time. Public holidays in the sender’s country, the recipient’s country or an intermediary bank’s country can all add a day. When will my international transfer arrive?
- Keep the confirmation. If a SWIFT payment is late, the sender’s bank confirmation (often called an MT103) with its UETR code is the fastest way to find it.
Frequently asked questions
Can I send euros by SWIFT to a country in the SEPA zone?
You can, but you wouldn’t want to. SEPA transfers are faster and free within your plan’s limits, while every SWIFT transfer has a service fee.
Why did I receive less than the invoice amount?
If the payment came through SWIFT, one or more banks along the way may have taken a fee. See Fees and deductions for international transfers (SWIFT). SEPA payments always arrive in full.
What do SEPA and SWIFT transfers cost?
SEPA transfers are free within your plan’s limits (€0.25 each on Holvi Flex). SWIFT transfers have a fixed service fee per transfer and a currency conversion fee when the payment involves foreign exchange; both depend on your plan. See Overview of international payments in Holvi for the current fees per plan.
Can I hold or send other currencies with Holvi?
Yes! In Holvi you can hold, send and receive euros and 17 other currencies, including USD, GBP, CHF, SEK, NOK and DKK. You can also open a currency account to avoid currency conversion fees. See Supported currencies for international transfers.
Is a BIC the same as a SWIFT code?
Yes. BIC (Bank Identifier Code) and SWIFT code mean the same thing: an 8- or 11-character code that identifies a bank. Find your Holvi IBAN and BIC