Bank Transfer from Europe:
Bank transfers in Europe are governed by the SEPA payment network. Single European Payment Area is an integrated banking system for the European Union. 28 countries from the European Union and 6 other countries under European Free Trade Association constitute the SEPA area. The SEPA payment system is designed for payment transfers designated in the currency Euro. The SEPA payment system works as a stand alone system with IBAN numbers as account identification factor, rather than using SWIFT codes. But SEPA payment system is designed to work well along with the SWIFT network in order to enable seamless cross border payments.
Payments within Europe:
The default currency of the countries in Eurozone like Cyprus, Estonia, Finland, Austria, Belgium, Ireland, Italy, Latvia, France, Germany, Greece, Netherlands, Portugal, Lithuania, Luxembourg, Malta, Slovakia, Slovenia, Spain is Euro. So the bank transfers inside the banks within these countries do not any incur any additional charges for the transfers in the Euro currency.
Countries like Czech Republic, Romania, Sweden, United Kingdom, Iceland, Liechtenstein, Norway, Monaco, San Marino, Switzerland, Bulgaria, Croatia, Denmark, Hungary, Poland are the countries which are having other currencies like koruna, kroner, pound, franc, zloty etc. For businesses and individuals to handle large international payments from these countries, they have 2 accounts to maintain Euro payments and the local currency usually. They do the currency conversion from the local currency to Euro and vice versa in terms of International and Euro payments. For payments within Euro accounts usually, there is no charge involved. But when there is a payment between a Euro account and an other currency account within the SEPA zone, there is a possible charge incurred for the currency conversion fee alone.
Payments Outside of Europe:
When the transaction happens between a customer in SEPA area and the other country out of SEPA area, the particular cross border payment is enabled using SWIFT network. SWIFT is a communication system for financial institutions all across the globe, which enables them to transfer the money securely. Each and every country has different methods of a local banking system. SWIFT network is agile and able to connect all the banking system across the world effectively and enables cross-border transactions. SWIFT network has network coverage of 99.99% of banks. So payments outside of Europe is usually done through SWIFT network from SEPA network. SWIFT network charges a fee for each and every transaction, which varies from 25-35 Euro, depending on the bank we use. Additional charges involved in a cross border payment apart SWIFT fee is currency conversion fee.
Virtual European Bank Account:
Virtual European Bank Account powered by B2Bpay, provides a business bank account in order to enable seamless payments between business in SEPA area and other countries out of SEPA area including Canada, United States, India, South Africa, Brazil, Hong Kong, Australia, Israel, Japan, New Zealand, Singapore, Taiwan, United Kingdom, Argentina, Chile, China, Korea - South, Mexico, Thailand and Vietnam. 80% Cheaper in terms of currency conversion fee and 80% faster when compared to traditional banks.