European Payments

Modulr allows clients to instantly open euro accounts for transacting in euros within the Single European Payments Area (SEPA)

To make payments in euros:

1. Create accounts with the currency set as "EUR".
2. Create payments with currency set as "EUR" and the destination type set as "IBAN" with the beneficiary account IBAN provided as the destination identifier.

Single European Payments Area (SEPA)

The single euro payments area (SEPA) harmonises the way cashless euro payments are made across Europe making cross-border electronic payments in euro as easy as domestic payments.

SEPA covers the whole of the EU. Other countries and territories which are part of the geographical scope of the SEPA Schemes are: Andorra, Iceland, Norway, Switzerland, Liechtenstein, Monaco, San Marino, United Kingdom, Vatican City State, Mayotte, Saint-Pierre-et Miquelon, Guernsey, Jersey and Isle of Man.

Modulr currently supports two of the SEPA payment schemes as outlined below.

SEPA Payment Schemes

SEPA Credit Transfers

The SEPA Credit Transfers payment scheme allows for the non-urgent transacting in euros with participating European PSPs.

Key Points:

• PSPs participating in SEPA are required to support the scheme
• There is an upper value limit per transaction of €999,999,999.99, i.e. one euro cent less than a billion euros.
• Payments are required to reach the beneficiary account within one business banking day from the requested execution date
• There are cut-off times for the processing of payments which if missed result in payments being processed the next business banking day

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Same Day Processing Requirements

Customers should create payments before 14:00 (GMT/BST) / 15:00 (CET/CEST) for them to be processed same working day.

Any payments created after this time will be processed on the next Business Banking Day.

SEPA Instant Credit Transfers

The SEPA Instant Credit Transfer payment scheme allows for the instant transacting in euros with participating European PSPs.

The scheme is not supported by all European PSPs however it is becoming increasingly popular with the number of participants increasing each month. Note also that even if a PSP supports it, not all their accounts might be configured to support it.

Key Points:

• PSPs participating in SEPA are not required to support the scheme, i.e. it is an optional payment scheme
• There is an upper value limit per transaction, currently set at €100,000, i.e. one hundred thousand euros.
• Payments are required to reach the beneficiary account within 10 seconds and will be rejected at the scheme level if they take longer than 20 seconds.
• Payments can be made 24/7/365

Outbound & Inbound SEPA Payments

Inbound Payments

We will receive inbound payments from whichever scheme was used by the sending PSP, either SEPA Instant Credit Transfer or SEPA Credit Transfer.

You can identify which scheme was used for any inbound payments received by the "Type" field of the PAYIN Web hook notification.

Outbound Payments

When you create an outbound payment, we will send it to the beneficiary PSP using the most appropriate scheme:

• via SEPA Instant Credit Transfers if the value is less than or equal to €100,000 and the beneficiary PSP is a participant of the scheme.
• via SEPA Credit Transfer if the value is greater than €100,000 or the beneficiary PSP is not a participant of the scheme

We will automatically resend payments via SEPA Credit Transfer in cases when they are rejected when initially sent via SEPA Instant Credit Transfer for the following reasons only:

• When rejected by the beneficiary PSP because despite being a scheme participant, the account is not enabled for SEPA Instant Credit Transfers.
• When rejected at the scheme level because it took longer than 20 seconds to be successfully processed.

The status of outbound payments successfully processed via SEPA Instant Credit Transfers will change to "Processed" within 20 seconds, triggering the sending of the PAYOUT Webhook if you have this enabled.