Making euro transfers is easier than ever before, with international money transfer providers offering multiple payment options, prices and delivery methods. For those who have never sent an international money transfer to Europe, this type of transaction might feel like a foreign concept. In this guide, we will provide an overview of what to expect when sending Euro transfers, including information on the financial systems in place which make things easier.
This kind of money transfer refers to the process of sending funds to a country using the Euro currency. It is possible to send euros to any of the 44 countries within Europe, even though only 19 of them use euro as their legal tender.
Out of the 44 countries which make up the European continent, 36 are included in the Single Euro Payments Area, also known as the SEPA.
The Euro currency is one of the newest global currencies, having been rolled out in the early 00’s after years of preparations.
The euro was an “invisible” currency used for accounting and electronic payment purposes only, for the first 3 years of its life, before launching officially in 2002.
For many countries within the EU, the introduction of the euro was the biggest cash overhaul in their history.
The SEPA is an initiative set up to simplify cross-border payments between European countries. The main objective is to make international money transfers within Europe as easy and convenient as arranging domestic transfers.
Due to the design of the Single Euro Payments Area, SEPA transfers are in many ways processed like domestic transfers. The banks that support SEPA payments either have established relationships with other banks or a network of intermediary banks, enabling seamless transfers across international borders. However, some customers may incur charges for SEPA transfers, so it is worth checking this beforehand.
Sending and receiving SEPA payments is a service which is only available within the 34 member countries enrolled in the initiative. For those sending Euro transfers outside of Europe, payments will be processed through the SWIFT network.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a messaging network that communicates international money transfer instructions between banks and other financial institutions. When initiating this type of transfer, important details are sent between corresponding institutions, using SWIFT codes to ensure funds are safely and securely deposited to the correct account. It is a trusted way of sending cross-border payments all over the world.
In contrast, as the name suggests, SEPA is a service used exclusively within Europe, as a way to make international transfers between European countries as easy and convenient as domestic transfers. In addition to being more convenient, SEPA payments can be executed within 1 business day, thanks to the harmonised infrastructure. Furthermore, SWIFT transfers can be made in various global currencies, while SEPA payments can only facilitate payments in Euros.
The SWIFT network was founded in 1973, and had been successfully transporting payment instructions globally for over 40 years when SEPA entered the scene. Although SWIFT and SEPA are both networks designed to promote seamless international payments, SEPA was set up by the European Payments Council (EPC) in 2008, as an alternative tailor-made service to specifically support Euro transfers.
If you’re interested in the difference between SEPA and BACS, check out our BACS transfers guide.
Wherever in the world you are, when transferring money to a European account you will need the following information:
If the recipient does not have this information, it can be found via their online banking, on a bank statement or by enquiring with their local bank branch.
Due to the fact the Euro is one of the top 10 most traded currencies in the world, international money transfers of this nature can be executed within 24 hours. However, this will all depend on the currency pairing, service provider and origin and destination countries.
Generally speaking, international money transfer providers will be able to execute a Euro transfer quicker than banks will. As specialists in their field, these international money transfer companies make it their responsibility to provide the quickest and most convenient service to customers, for the lowest price possible.
Azimo is a simple and easy online money transfer provider offering fantastic bank-beating rates for Euro transfers. In addition to this, customers are able to lock in the exchange rate for the duration of the transfer, so the amount which is received is guaranteed from the beginning, with no hidden fees.
SEPA transfers involve minimal fees, sometimes zero, which is a perk of sending payments to Europe this way. Conversely, SWIFT transfers may incur fees of up to $50 in some cases.
With this said, all associated fees and service charges will depend on the method of transfer you go with: for the most part, bank services cost substantially more than international money transfer companies. The total amount of transfer fees and exchange rate markups incurred during an international money transfer is determined by the service provider.
Euro transfers, although a foreign concept for many people, should not be feared. There are so many options to choose from when sending money overseas, and euro transfers can be easily executed online. For those who prefer speaking to someone over the phone, reputable companies such as Wise and TorFX have dedicated currency experts on the other end of the line, ready to assist you with your remittance payment. Use our comparison tool and find the best exchange rate for your euro transfer today.
April is a journalist and full-time content writer for MoneyTransfers.com. Over the last decade she has written for a number of different online and print publications. Having lived overseas in Canada and Vietnam, April hopes to see more of the world as soon as possible, with Japan at the top of her travel list. As a former expat, April has first-hand experience of managing finances from overseas. She enjoys writing about forex trends and the future of banking.