SEPA
Category: Payments
Definition (plain English)
The Single Euro Payments Area, a European payment scheme for euro transfers and direct debits between participating banks and countries.
Why it matters commercially
SEPA can reduce bank fees and transfer friction for euro payments, but it does not remove beneficiary verification, sanctions screening, or invoice-control duties.
Example
A buyer used SEPA credit transfer for a recurring EU supplier only after confirming the IBAN, beneficiary name, invoice reference, and approved payment trigger.
Common mistake
Assuming SEPA is safe because it is cheap and regional, without checking account ownership, bank-detail changes, payment reference, and fraud controls.
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