SWIFT vs SEPA for business

What SEPA and SWIFT are and how they differ

When you're sending money as a business, SEPA and SWIFT are simply the two main paths your bank might use for that transfer. SEPA, the Single Euro Payments Area, means banks in certain countries follow shared rules to move euro payments, so in many cases, it feels a lot like making a domestic transfer. SWIFT, on the other hand, is a huge network where banks worldwide send messages to each other, relaying instructions for payments in nearly any currency or country.

So what's the practical upshot? SEPA restricts itself to euro transfers between accounts in SEPA countries. That list runs through all EU members and some additional European countries. SWIFT, meanwhile, handles payments almost everywhere and in any currency, so you'll see it used when the destination isn't in the SEPA club, or the currency isn't the euro.

Speed, fees and the information you need

EU regulations say a standard SEPA credit transfer must reach its destination in one business day. SWIFT payments aren't bound by a single timetable: sometimes they're there quickly, but at times you'll wait several working days, and different banks may reduce the amount while it's en route, see intermediary bank fees explained for how that works.

You'll also need the right details. A SEPA transfer asks for the recipient's IBAN, the international account number format that lets banks recognize each other across the SEPA bloc. For SWIFT, you'll need more: the bank's BIC (bank identifier code, also called the SWIFT code), plus the account holder's number, name, and sometimes why you're sending the payment (for example, "invoice 9652").

Choosing the right route for your payment

Usually, the currency and where the money's going make the choice clear. If you're paying in euros to a supplier in Germany or Austria, SEPA is usually available. If you need to send dollars to a business in the US, or you're sending euros to a country outside SEPA, the bank will likely steer you onto the SWIFT network.

Before submitting a payment, double-check if the receiving country is inside SEPA, that you're paying in euros, and whether your bank offers SEPA for this transfer. Most banks will automatically pick the right route, but it's worth asking if you're not sure. For instant euro payments, there's further detail at SEPA Instant Credit Transfer for businesses.

Frequently asked questions