SEPA is an EU initiative, which spans the EU/EEA and Switzerland. Within this area, all euro payments are treated as domestic, regardless if they are performed nationally or cross-border. In the euro countries, the fees for national and cross-border transactions have also been harmonised.

The overall goal of SEPA is to reduce the cost of moving capital around. This is achieved by using uniform payment transaction instruments and standards, so that borderless payments become just as safe, simple, fast and cheap as domestic payments.

SEPA payment transfers have no amount limits. They must be denominated in euro and will be effected to the full amount within one banking day. In terms of fees, the payer and the beneficiary must each pay their own bank charges.

Euro payments only

SEPA does not cover payments in currencies other than the euro. As a customer based in Denmark, Sweden or Norway, you will therefore solely perform your cross border payments towards the Eurozone as SEPA payments.

From an EU perspective, there is no distinction between national and cross-border SEPA payments. Consequently, the user access Domestic Payments in District will allow the user in question to create and authorise cross-border SEPA payments from accounts in Danske Bank in Germany, Ireland and Finland.

International businesses with subsidiaries in SEPA countries

Are you a customer with your headquarters outside of SEPA? Then SEPA Credit Transfers might still be attractive for your business as a means to optimise your euro liquidity and payment processes. Learn more about your possibilities here.

Rules for SEPA payments

The following rules apply to SEPA payments:

  • The payment must be in euro
  • The beneficiary account number must be an International Bank Account Number (IBAN)
  • The beneficiary must be located in one of the countries within the SEPA
  • Each party pays the costs payable to its own bank
  • The transfer type must be Standard
How to process a SEPA payment

To process a SEPA payment, the payment file must be submitted in the ISO 20022 XML format, and the beneficiary account must be stated in the IBAN format. Find IBAN numbers here. 

You will also need to notify your customers of your IBAN number and Danske Bank’s BIC (SWIFT) number. Find the Danske Bank BIC number here. 

XML conversion service

If your ERP system cannot create ISO 20022 XML files, Danske Bank’s XML file conversion service can assist you. Learn more about your options here.

For questions, please contact your local cash manager.