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SEPA Credit Transfer: SCT

The SCT (SEPA Credit Transfer) was launched in January 2008, with the aim of replacing national credit transfers within the SEPA zone. The transition to SEPA strengthens the single market and facilitates the development of trade in Europe. Indeed, the SEPA Credit Transfer is based on the harmonisation of money transfers in terms of pricing, format and transaction speed between the 34 member countries.

Information on the SCT credit transfer

Operational since January 2008, the TBS transfer has been mandatory since February 1, 2014. The role of the SEPA Credit Transfer is to transfer funds in euro between the payment account of an originator and that of a beneficiary located in one of the institutions located in the SEPA zone. There is no limit on the amount of the transaction.

The SEPA credit transfer, whose file exchange format between banks and companies is currently the ISO 20022 XML format, is based on IBAN + BIC bank details. This is the identifier of the beneficiary and his institution. These details are also included in the RIB.

Instead of the previous 35 characters, a maximum of 140 characters is now included in the transfer. Note also that the person making the transfer can enter a reference in each SCT.

With regard to the speed of execution of bank transfers, the SEPA credit transfer is settled with a maximum delay of one working day from the date on which the account of the originator is debited.

The originator’s bank may request a recall, i.e. a request for the return of funds in the event of fraud or technical problems, such as errors on the SCT or duplications. However, this recall is not guaranteed, as it is linked to the agreement of the beneficiary and his bank.

Treezor is a financial institution directly connected to the SEPA network and has its own BIC. As such, the company can generate IBANs and issue credit transfers.

Advantages of the SCT credit transfer

With the entry into force of the SEPA Credit Transfer, transaction costs have been reduced, cross-border trade has become simpler, accounting reconciliations have been facilitated and cash management has been optimised, thus facilitating business operations within the European area.