What is SEPA Credit Transfer?
The European Payments Council (EPC) has established the single euro payments area (SEPA) to standardize cashless euro payments across Europe. It defines, among others, the SEPA Credit Transfer scheme (SCT). It defines a set of rules, practices and standards to achieve interoperability for SEPA payment instruments between participating banks and payment service providers in 36 European countries.
As opposed to SEPA Direct Debit, SEPA Credit Transfer does not require a mandate. For details, see SEPA Credit Transfer on the EPC website.
The payout is initiated by the debtor, submitting the order to their bank. The order includes information like amount, payout date and creditor IBAN. The bank then executes the order, withdrawing the money from the debtor's account and putting it to the creditor's account.
Unless specifically agreed with the bank, JustOn Cash Management uses the basic character set defined by the European Payment Council when creating SEPA payment orders. For details, see SEPA Requirements for an Extended Character Set (UNICODE Subset) - Best Practices.
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This overview on SEPA Credit Transfer does not constitute any legally effective advice. JustOn cannot and must not provide such services. For any detailed questions and current information on implementing SEPA Credit Transfer, contact your bank.