SEPA transfer – what is it and how does it work?

I. SEPA (Single Euro Payments Area) is a EURO transfer system that operates in SEPA member countries.

1. Main features of a SEPA transfer

• Currency: euro (EUR) only
• Available in: EU countries and additionally Norway, Switzerland, Iceland, Liechtenstein
• Works like a domestic transfer – no additional fees for a “foreign transfer” as long as it meets SEPA requirements

2. Conditions that must be met for a SEPA transfer:

• Currency: euro (EUR) only.
• Sender and recipient account: in SEPA countries
• Account number: IBAN
• BIC/SWIFT code: sometimes required
• Cost: SHA option (everyone pays their bank’s commission)
• No additional special instructions (e.g. OUR, BEN).

3. Processing time:
• Standard: 1–3 business days
• Usually: 1 business day, sometimes even the same day

II. How does it work in practice?

Example:
Transfer of 500 EUR from Germany to Poland (EUR account).

• Fast and cheap (cheaper than SWIFT)
• No additional foreign fees
• Important: only EUR → EUR. If the sender selects PLN, a double currency conversion occurs (EUR → PLN → EUR), which means a loss of money and the need to pay an additional fee.

III. Problems with SEPA transfers from France, Belgium and Germany

Some banks block SEPA from the start, especially for new accounts. Reasons:

• Security – you need to add the recipient as trusted, confirm via SMS or application.
• No activation – in some banks, international SEPA is disabled by default.

Examples of banks:

• BNP Paribas – requires recipient activation, possible SEPA blocking to Poland
• Crédit Agricole – daily limit, recipient activation
• Société Générale – confirmation of a new recipient with an SMS code
• La Banque Postale – default blocking of foreign transfers
• Hello Bank – blocking of first transfers, contacting support

What to do:

• Add a recipient in online banking (IBAN starting with “PL”)
• In case of a blockage – call the customer service and activate foreign SEPA.
• Send a test transfer of 1 EUR
• Enable the foreign transfers option in your account settings

Alternative: online banks and fintechs (Revolut, Wise, N26, Monese) – no SEPA restrictions

IV. The most common mistake – choosing the Polish zloty (PLN) instead of the euro (EUR)

How does this happen?

• The bank’s interface suggests PLN (because the IBAN starts with “PL”)
• Customer approves PLN instead of EUR
• The sender’s bank converts the currency EUR → PLN, and the recipient’s bank converts it back PLN → EUR.

The result: double currency conversion and loss of up to several percent of the transfer.

Examples:

• BNP Paribas France – the customer sent 1000 EUR, the recipient received 915 EUR
• Crédit Agricole France – the system suggested PLN for an account in Poland
• La Banque Postale – no possibility to send EUR to Poland, forced PLN

How to avoid making this mistake:

• Always choose EUR as your transfer currency
• Check if the recipient’s account in Poland is held in EUR
• Enter the recipient as trusted and save the default currency as EUR
• Be careful when selecting the country – do not let the system change the currency to PLN

V. Summary – how to correctly make a SEPA transfer

• Transfer type: SEPA
• Currency: EUR
• Account number: IBAN (starting with PL)
• Do not choose: SWIFT, PLN transfers or the OUR/BEN option

If you have any doubts, confirm with your bank that the transfer will be made as SEPA and in euro.