The difference between SEPA and SWIFT
EQapital Trust
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Making an international money transfer? You might have come across the terms SEPA and SWIFT. But what exactly do they mean?
In short, SEPA is a payment system within Europe that makes it quick and easy to send and receive money. SWIFT, on the other hand, is a global payment system that’s used for sending and receiving money all over the world.
So, if you’re looking to make a payment within Europe, SEPA is the way to go. But if you need to send money further afield, you’ll need to use SWIFT.
To help you understand the difference between SEPA and SWIFT, we’ve put together this handy guide. Read on to find out everything you need to know!
In reality, it makes little difference for common users, like business owners, to utilize SEPA or SWIFT for making payments in euros inside Europe. Yet there are some subtleties. For instance, the SWIFT system was established in accordance with Belgian legislation, but since 2011, it has been under the jurisdiction of the U.S. State Department, which oversees all payments. However, the SEPA system is completely intra-European, and European organizations like tax agencies, for instance, monitor payments. SEPA is designed for fast, convenient, and hassle-free payments, while SWIFT requires bank details and Bank Identifier Codes (BIC) for money transfers. SEPA also has lower transaction costs than SWIFT.
You'll hear a lot about the “wire transfer” way of moving money from one bank account to another in the online community. This is referring to the SWIFT-owned transatlantic "bank cable." As time went on, a "wire transfer" would increasingly be referred to as a SWIFT transfer, which is the same thing. Among banks, SWIFT is regarded as a secure messaging platform. The amount, IBAN, bank code, and other relevant information are sent by the bank when making a wire transfer using the SWIFT system.
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In conclusion, SEPA and SWIFT are two different payment systems that offer different benefits. SEPA is faster and more secure, while SWIFT offers a more global network.
We at EQapital Trust are aware of the difference between #SEPA and #SWIFT, and that’s why we offer both of them to our customers. Your needs come first and in EQapital you can trust!