Society for Worldwide Interbank Financial Telecommunication- SWIFT and SEPA- Single Euro Payments Area are facilitating payments within Europe and worldwide. So the benefits of it are far extending. Especially, for merchants dealing without borders, it is a blessing. Also payments industry is evolving. Therefore, existence of SWIFT and SEPA can make your life even easier.
SEPA provides payments in Euros with no restriction on the amount and within the Eurozone. In this the recipient’s account number is required to be in the IBAN format. And SWIFT is the global leading messaging system that banks and other financial institutions use.
So, whether you operate within Europe only or across the world, SWIFT and SEPA can be the true savior! Restricting business due to lack of payment solution is a thing of the past. Payment solutions are wide reaching with the globalisation trends.
What are these?
SWIFT provides a network that enables financial institutions worldwide. It sends and receives information about financial transactions in a secure, standardised and reliable environment. SWIFT also sells software and services to financial institutions. Also much of it for use on the SWIFTNet network, and ISO 9362. Furthermore, business Identifier Codes (BICs, previously Bank Identifier Codes) are popularly known as “SWIFT codes”.
SEPA is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro. As of 2019, there were 34 members in SEPA. It consists of the 28 member states of the European Union, the four member states of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) and two more. Some countries participate in the technical schemes: Andorra, Monaco, San Marino, and Vatican City.
Benefits of SWIFT and SEPA
SWIFT:
- SWIFT payments clearly detail the amounts involved in the transaction. The route it takes between banks, the details of all charges and the nature of the payment. This information allows all parties involved to track the transaction and to understand the costs and time period involved.
- Because SWIFT details the route of the transaction between banks and the amount of money involved. It provides clear and recognised proof of payment.
- Due to the consistency of how messages are structured, payment information is easy to decipher regardless of country or language barriers.
SEPA:
- It allows easy bank transfers to cross the border within Euro areas.
- The transaction costs are lower and faster.
- Also, the payment gets completed within the validity period of guarantee and banks are not allowed for making any deductions for the amount transferred.
- Furthermore, the customers get also clear and simple information on any of the charges and costs. This means there are no hidden charges involved in the local bank.
You, SWIFT and SEPA
Processing payments across borders can be troublesome. More importantly for high-risk merchants. With payment processing assistance like PayFasto, payment processing gets easier. PayFasto helps you to have high risk merchant accounts for people using SWIFT and SEPA.
Therefore, we thrive to grow together. Join the family now!
