Single Euro Payments Area - Misconceptions

Misconceptions

There is a misconception that all credit transfers in the SEPA are free to the consumer, either by plan rules or national transposition of the Payments Services Directives. There is another misconception that the European Parliament mandated that a bank must charge the same amount for SEPA credit transfers (which may be cross-border) as it charges for domestic credit transfers in euros. However, the European Parliament mandated that a bank charge the same amount for international euro transfers within the European Economic Area as it charges for domestic credit transfers in euros. The European Economic Area is different from the SEPA area; the most significant difference is the inclusion of Switzerland in SEPA but not the EEA. The rule of the same price applies, even if the transaction is sent as an international transaction instead of a SEPA transaction (common before 2008, or if any involved bank does not yet support SEPA transactions). Banks and payment institutions still have the option of charging a credit-transfer fee of their choice if it is charged uniformly to all EEA participants, banks or payment institutions, domestic or foreign. This is relevant for countries which do not use the euro; domestic transfers in euro by consumers are uncommon, and inflated fees might be charged.