SEPA – Questions and Answers about the Single Euro Payments Area
In Serbia, starting from May 5, 2026, citizens and businesses will be able to use the same payment terms as other users of SEPA, the Single Euro Payments Area that includes more than 40 European countries and territories, including several countries that are not part of the European Union or the eurozone.
Learn more about what SEPA is, how it works, and how it will facilitate and speed up money transfers and reduce transaction costs for citizens and businesses In the following texts.
Basic Terms and Definitions
SEPA (Single Euro Payments Area) is a single area for euro payments enabling the standardized execution of cashless transactions between member countries under the same rules and deadlines.
The SEPA foreign currency payment order implies:
- Payments in EUR.
- The beneficiary’s account number in IBAN format and cost option SHA.
What is SEPA Credit Transfer (SCT)?
SEPA Credit Transfer (SCT) is the basic SEPA scheme for standard euro payments between banks in the SEPA area.
The maximum execution deadline is D+1 (the following workday). Payments are realized in predefined time cycles.
SEPA Area and Membership
Which countries and territories make up the SEPA area?
The SEPA area is made up of more than 40 European countries and territories, including countries that are not members of the EU or the eurozone.
Serbia was accepted in the SEPA geographical area, while Bosnia and Herzegovina was announced as the new SEPA country from 2027.
(The list of countries includes: EU countries, Great Britain, Switzerland, Norway, Iceland, Liechtenstein, Albania, Montenegro, Northern Macedonia, Moldova, etc.)
Where can I find an updated list of SEPA members?
The updated list of SEPA members is available on this link.
SEPA Payment Schemes
There are three basic SEPA payment schemes:
- SEPA Credit Transfer (SCT) – standard payments in EUR.
- SEPA Instant Credit Transfer (SCT Inst) – instant payments in EUR (up to 10 seconds).
- SEPA Direct Debit (SDD Core and B2B) – direct debit in EUR.
Which SEPA payment scheme does Raiffeisen banka participate in and in what way?
In this phase, Raiffeisen banka uses the SEPA Credit Transfer (SCT) scheme, as do all other banks in Serbia.
All banks in Serbia are indirect SEPA participants.
Raiffeisen banka participates in the SEPA system through its head office Raiffeisen Bank International AG, Austria, which is a direct SEPA participant.
Payment Order Processing and Deadlines
Does SEPA Credit Transfer operate 24/7?
No. SEPA SCT does not operate 24/7.
Payment orders are executed on workdays in defined time cycles.
What is the COT (cut-off time) for SEPA foreign currency payment orders?
The COT for SEPA foreign currency payment orders is 1 o’clock PM (13:00h), the same as for SWIFT foreign currency payment orders.
Payment orders received until 1 o’clock PM (13:00h) can be executed on the same day or on the following workday, because of the SEPA COT for Raiffeisen Bank International Austria.
Is a confirmation submitted as regards the execution of SEPA payment orders?
Yes.
The bank submits a confirmation as regards the execution of a payment order via e-mail, the same as for SWIFT payments.
Costs and Payment Options
Does the SHA cost option guarantee the payment of the full amount?
SEPA rules guarantee that the payment order is executed for the full amount, but the beneficiary’s bank has the right to charge an incoming payment fee.
Can the client choose the mode of payment order execution (SEPA, SWIFT or other)?
No. The bank determines the payment execution based on elements of the payment order.
If the payment order fulfills SEPA requirements (IBAN, EUR, SHA, SEPA country), the system executes it automatically as SEPA payment.
What are the benefits of SEPA payments?
- Lower and predictable fees
- Fast execution.
- Fewer intermediaries in transaction execution.
- The full amount is forwarded to the beneficiary’s bank.
Incoming Payments and Booking
How are incoming payments from the SEPA area booked?
SEPA incoming payments are booked immediately upon receipt, with the initial basis of payment code determined by the bank based on available or historical data.
The client is required to submit the following either on the same day or on the following workday:
- the corresponding basis of payment code for the particular incoming payment,
- accompanying documents, if needed.
Is there a difference compared to SWIFT incoming payments?
Yes.
SWIFT incoming payments are booked only after the client submits the basis of payment code and the accompanying documents, if needed.
How is the fee for SEPA payments charged?
- Legal entities and entrepreneurs: no fee.
- Natural persons: payment received in the full amount, with lower fees than was the case so far.
Regulatory Requirements and Documents
Does SEPA abolish the duties defined in the foreign currency regulations of Serbia?
No.
The SEPA standard does not abolish the duties specified in the local foreign currency regulations.
Clients still need to submit:
- Statistical data (basis of payment/collection etc.) necessary to the balance of payments of the Republic of Serbia.
- Documents if necessary for executing the particular transaction.
What if the client does not submit the basis of payment?
Submitting the basis of payment and the accompanying documents (if needed) is a legally required obligation of the client, i.e. of the payment beneficiary.
If the client does not provide the basis of payment and the accompanying documents if required for the booked incoming payment either on the same day or on the following workday, the bank is under the obligation to inform the National Bank of Serbia accordingly.
Errors, Limits and Uncommon Situations
What if the payment order is not filled in correctly (e.g. IBAN)?
The payment order may be:
- refused before execution or
- returned after execution.
The money is returned to the sender. This procedure is applied both for incoming and outgoing payments.
Is there a maximum amount for SEPA transfers?
No.
SEPA Credit Transfer does not have a formal amount limit.
Can the acceptance of an incoming payment received through the SEPA scheme be refused?
If the client wishes to refuse the receipt of an incoming payment through the SEPA payment scheme (either partly or the full amount), the client needs to submit a special order to return the funds received to the sender.