The SEPA project is a significant step in European integration in the area of payments. SEPA (Single Euro Payments Area) means the area in which cashless transfers in EUR are executed under unified conditions.
SEPA Credit Transfer is a payment in EUR within the SEPA area. Entering the account number is unified for the entire SEPA area, the beneficiary account number is provided in the international format of the account number (IBAN), the recipient bank is identified by a swift code (BIC).
- speed - payment is made to the beneficiary bank account on the next banking day following the order maturity date and it is credited to the beneficiary account on the same date
- the amount is transferred among accounts in the full amount
- identical conditions - charge for payment does not depend on the country or the bank in which the beneficiary account is kept
- price - charge of the SHA type – the payment sender shall pay only charges for the sent payment according to the price list of its bank, the payment beneficiary shall pay charges for the received payment according to the price list of its bank
- easier entering of payment orders – the same format of account number for all payments within SEPA
IBAN - International Bank Account Number
Based on European Commission Regulation No. 2560/2001 on cross-border payments in euro to European Union countries, it is necessary to indicate account number in the IBAN format for cross-border payments.
IBAN - INTERNATIONAL BANK ACCOUNT NUMBER (hereinafter only “IBAN“) entered into force on January 1, 2002 in the following countries: Belgium, Denmark, Finland, France, Greece, Netherlands, Ireland, Iceland, Luxembourg, Germany, Norway, Poland, Portugal, Austria, Spain, Sweden, Switzerland, Italy and United Kingdom.
IBAN consists of alphanumeric characters that uniquely identify a client’s account number held at a foreign bank. Clients of foreign banks are informed about the existence, use and usefulness of the IBAN.
The aim of the IBAN is to make automatic processing of cross-border credit transfers easier (in case of incorrect IBAN, or in case the account number is not quoted in the IBAN format, the payment is processed by the foreign bank manually).
General structure of IBAN:
- country code (two characters, e.g. AT),
- check digit (2 numeric characters),
- numeric bank code (according to BLZ, AT…, or according to swift abbreviation),
- account number itself.
More info can be found on Czech National Bank´s website www.cnb.cz