Are SEPA Payments Really Free?

SEPA (Single Euro Payments Area) payments have revolutionised the way we send and receive money across Europe, making cross-border transactions as simple as domestic ones. However, despite the promise of ease and affordability, many are left wondering if SEPA payments are truly free or if there are hidden costs involved.

This article explores the concept of SEPA payments, the potential hidden fees, and highlights how APS Bank is leading the way by removing SEPA payment fees for all customers. 

What are SEPA Payments?

SEPA stands for Single Euro Payments Area. It is a network that enables seamless euro (€) transactions across member countries. SEPA currently involves 36 countries, including all EU member states and several non-EU countries. A full list of the latest SEPA participating states can be found on the European Central Bank’s website. SEPA standardises the process for making euro payments, ensuring they are as simple and efficient as domestic transfers.

There are two main types of SEPA bank transfers:

1. SEPA Credit Transfer (SCT): this is the most common type, used for one-time transfers between banks.
2. SEPA Direct Debit (SDD): this service allows businesses and individuals to collect payments in euros from accounts across the SEPA zone.

With SEPA, transferring money within the eurozone is designed to be simple and cost-effective, promoting economic integration and efficiency.

Hidden Costs in SEPA Payments

While SEPA payments are promoted as a hassle-free way to move money across Europe, many banks impose additional fees. Here are some potential hidden costs:

• Transfer Fees: many banks charge a fee for initiating SEPA transfers. These fees can vary significantly between banks and are often not prominently disclosed.
• Recipient Fees: some banks also charge the recipient a fee to receive a SEPA transfer. This can be inconvenient for businesses and individuals who frequently receive payments.
• Shared Costs (SHA) Method: in this method, the sender and recipient share the transfer costs. While it might seem fair, it still means that both parties pay. 
• Currency Conversion Fees: if the transfer involves currency conversion, extra fees may apply, even though SEPA transactions are supposed to be in euros.
• Account Maintenance Fees: some banks may include SEPA transfer costs within broader account maintenance fees, making it harder to understand the true cost of each transaction.

These hidden fees can add up, undermining the cost-effectiveness of SEPA transfers and complicating financial planning for both individuals and businesses.

APS Bank: Removal of SEPA Payments

In a significant move towards transparency and customer-friendly banking, APS Bank has become the first local bank to remove online SEPA payment fees for all customers, including businesses. This initiative eliminates the common hidden costs associated with SEPA transfers, ensuring that sending and receiving payments in euros within the SEPA zone is genuinely free for APS Bank customers.

By removing these fees, APS Bank aims to simplify banking for its customers and encourage the use of efficient, cross-border transactions without the burden of unexpected charges. This commitment to customer satisfaction and fair banking practices sets APS Bank apart in the financial services industry.

While the SEPA payment will be free from APS Bank fees, customers might still incur a fee from the other banks, where the payment is transferred from or received.

Start Using myAPS: Anytime, Anywhere

APS Bank’s myAPS internet and mobile banking services offer a seamless and secure way to manage your finances, including making SEPA payments. Here are some key features of myAPS:

• Simple: the myAPS platform is designed with a user-friendly interface that allows you to manage all your APS accounts from a single, intuitive screen. This simplicity ensures you can control your finances quickly and easily.
• Secure: myAPS employs the latest digital security technologies to safeguard your privacy. The app also features biometric technology, enabling secure and convenient login with just your fingerprint (available on iOS and Android) or Face ID® (on iOS).
• Convenient: understanding the value of your time, myAPS is available 24/7, making everyday banking tasks quick and easy. Whether you need to check your balance, make a transfer, or review your transaction history, myAPS has you covered anytime, anywhere.

Get In Touch with APS Bank

If you have any questions or need more information about SEPA payments, the removal of fees, or how to get started with myAPS, APS Bank is here to help. You can reach out to our team by filling in the form below and we’ll help you master the world of online and mobile banking.

Approved and issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR 4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is also registered as a Tied Insurance Intermediary under the Insurance Distribution Act 2018. Terms and conditions apply and are available on Terms and Conditions – APS Bank.
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