The Single Euro Payments Area (SEPA) aims to create a fully integrated and efficient payments market by providing common standards, harmonised procedures, and unified technical specifications for Euro-denominated payments within the European Union (EU), the European Economic Area (EEA), and the remaining SEPA countries. To achieve this objective, Regulation (EU) 260/2012, also known as the “SEPA end-date regulation” was introduced, establishing the technical and operational requirements for euro credit transfers and direct debits. 

With the recent amendments introduced by Regulation (EU) 2024/886 (Instant Payments Regulation – IPR), Regulation (EU) 260/2012 has been updated to incorporate binding requirements concerning instant euro credit transfers. In particular, all payment service providers (PSPs) within SEPA countries are now obliged to offer instant payment services, ensuring that transactions are executed within seconds, 24 hours a day, 365 days a year.

Through these measures, Regulation (EU) 260/2012, as amended, ensures that all Euro payments and debt collections within SEPA are carried out under common, transparent, and technically harmonised procedures and communication standards between payment service providers, consumers, and businesses. This contributes to an efficient and fully integrated  SEPA payments market.

The countries which are part of the jurisdictional scope of SEPA are the following:

European Union (EU) – Euro Area countries (21 countries)

Austria	Ireland	Malta
Belgium	Spain	The Netherlands
France	Italy	Portugal
Germany	Cyrpus	Slovakia
Greece	Latvia	Slovenia
Estonia	Luxembourg	Finland
Croatia	Lithuania	Bulgaria (01/2026)

 

European Union (EU) – Member States with currencies other than the euro (6 countries)

Sweden	Romania
Denmark	Czech Republic
Hungary
Poland

 

Non-EU countries

Switzerland	Liechtenstein	Norway
Iceland	Monaco	Albania
Andorra	Moldova	Montenegro
North Macedonia	San Marino	Vatican City State
United Kingdom	Serbia (05/2026)

The benefits brought by SEPA to consumers, when these either make payments (“payers”) or receive payments (“payees”), are the following:

• Convenient use
• Automated procedure
• Uniformity of technical rules

The Regulation requires the use of common standards and business practices throughout Europe. Indicatively, the following standards apply to SEPA payment orders:

• IBAN: International Bank Account Number

This number unambiguously identifies the credit institution and the account of a payee. Within SEPA, the use of IBAN becomes mandatory and is a prerequisite for the automated processing of payment orders.

• BIC: Business Identifier Code:

International standardised code which uniquely identifies a financial institution anywhere in the world. A different naming for BIC is SWIFT Code. 
 

• “ISO 20022 XML” Standard:

Standard format for the development of electronic financial messages, as defined by ISO, including the payments orders and direct debits in XML format, in accordance with the rules under the scope of the Regulation (ΕU) 260/2012.

For access to the information concerning the articles of the Regulation through the official website of the Central Bank of Cyprus click here.

The changes resulting from the implementation of Regulation (EU) 260/2012 for individuals are the following:

• As of 1.2.2016, the mandatory use of the Bank Identification Code (BIC) is cancelled.
• Exclusive mandatory use-inclusion of the IBAN (International Bank Account Number)
• The Remittance Info field allows for a maximum length of 140 characters.

The above apply to direct debits (SEPA DIRECT DEBITS) and credit transfers (SEPA CREDIT TRANSFERS), as well as instant payments (SEPA INSTANT CREDIT TRANSFERS) within the European Union, i.e. to:

• Outgoing credit transfers from Branches, the Digital channels and other channels of payments
• Incoming credit transfers
• Payment orders to third parties

You may contact the Branch/ Unit with which you hold your accounts for any clarifications.

The changes resulting from the implementation of Regulation (EU) 260/ 2012 for businesses are the following:

• As of 1.2.2016, the use of the Bank Identification Code (BIC) by customers was abolished. 
• As of 1.2.2016, the files’ format exchange between banks and non micro-enterprises (as defined by the Commission Recommendation 2003/ 361/ EC) was modified.
• Exclusive mandatory use-inclusion of the IBAN (International Bank Account Number).
• The Remittance Info field allows for a maximum length of 140 characters.

The above apply to direct debits (SEPA DIRECT DEBITS) and credit transfers (SEPA CREDIT TRANSFERS), as well as instant payments (SEPA INSTANT CREDIT TRANSFERS)  within the European Union, i.e. to:

• Outgoing credit transfers from Branches, Digital channels and other bank channels
• Incoming credit transfers
• Payment orders to Beneficiary Organizations.
• Payroll payments
• Mass electronic payments
• Direct debits

1. What is SEPA?
SEPA (Single European Payments Area) is the payments area in the European Union (EU) where consumers, businesses and other economic actors can make and receive payments in euro under a set of common and uniform rules.


2. When was SEPA created?
SEPA was created with the introduction of the euro in the year 2002, with the aim of creating an integrated European infrastructure and a uniform regulatory framework for payment issues.


3. Who is affected by SEPA?
SEPA affects credit institutions (banks), clearing and settlement systems, businesses, consumers, State authorities and Public Administration organizations.


4. Why was SEPA created?
SEPA was created with the aim of developing an integrated European market for payments.


5. What are the benefits that consumers gain through SEPA?
The benefits that consumers gain through SEPA, either as payers or as payees, are the following:

• Convenient use - Automated procedure - Uniformity of technical rules
• Convenience, security and fast payments
• Uniformity regarding the date on which funds become available (value date), with possibilities for further arrangements - No maximum amount limit for payments

6. What are the charging options available for SEPA transactions?
Payment orders can be marked as SHA (for “shared”). Meaning, the payer and the payee, each pays the charges applied by the bank that serves them.


7. Is it possible to execute payment transactions with charging option BEN?
No, this is not possible.


8. Is the pricing for SEPA credit transfers uniform?
According to Regulation (EU) 260/2012, the Bank applies uniform pricing for all SEPA credit transfers, including SEPA Instant Credit Transfers, when transactions are executed within the countries of the European Union (EU) and the European Economic Area (EEA).

The applicable fees are determined by the Bank’s Charges Catalogue currently in effect.


9. What changes has Regulation 260/ 2012 introduced to banking products for private customers (individuals)?

• Use-inclusion of the IBAN (International Bank Account Number) is mandatory, even for accounts held within the same Bank
• Customers may include up to 140 characters in the Remittance Info field
• The use of the Bank Identification Code (BIC) by customers is abolished.

10. What changes has Regulation 260/ 2012 introduced to banking products for businesses?

• Use-inclusion of the IBAN (International Bank Account Number) is mandatory, even for accounts held within the same Bank
• Customers may include up to 140 characters in the Remittance Info field
• The use of the ISO 20022 XML format in credit transfer and direct debit files is mandatory.
• The use of the Bank Identification Code (BIC) by customers is abolished.

11. Which Alpha Bank products are affected by Regulation 260/ 2012?
The Regulation affects the following Alpha Bank products, whether these are offered to an individual or to a business:

A) Payment orders (credit transfers) via Branch network, Digital channels (ALPHA 360 WEB / ALPHA 360 MOBILE) and other Bank channels:

• Individual internal payments within the Bank (outgoing)
•  Individual interbank payments (outgoing)
• Payroll Payment with submission of a relevant file by the businesses ONLY, through the following services:
  • ALPHA 360 
  • ALPHA BANK FILE TRANSFER
• Interbank or Internal mass payments within the Bank with submission of a relevant file by the businesses, through the following services:
  • ALPHA 360 
  • ALPHA BANK FILE TRANSFER

 
B) Collections (direct debits)

• Collections (Direct Debits) with submission of a payments file by JCC Payment Systems   Ltd on behalf of the businesses, with the Bank acting as:
  • Debtor Bank
  • Creditor Bank

12. Do transactions in cash have to comply with Regulation 260/ 2012?
No, they do not have to comply with the Regulation.


13. Do transactions with payment cards have to comply with Regulation 260/ 2012?
No, they do not have to comply with the Regulation.



14. Via which channels may a business send to the Bank interbank mass payment files?
A business may send interbank/ intrabank mass payment files via:

• Alpha 360 Web in .txt format or ISO 20022 XML format
• Alpha Bank File Transfer

15. Can we contact Alpha Bank for more details on the XML file specifications or sample files?
Yes for more information on the file specifications,  sample XML files or testing  please contact us via email to IT@alphabank.com.cy