European Payments

Modulr participates in both the SEPA Credit Transfer and SEPA Instant Credit Transfer payment schemes, enabling clients to send and receive euro payments across the SEPA region.

The maximum outbound payment value is €10,000,000 per transaction. There is no limit applied to inbound payments.

Inbound Payments

Inbound SEPA payments are received via whichever scheme was used by the originating PSP.

Outbound Payments

Outbound SEPA payments will be submitted via SEPA Instant Credit Transfer if the beneficiary PSP participates in the scheme. If they do not, or if you have specified SEPA_CREDIT in the permittedScheme parameter of the payment request, then it will be submitted via SEPA Credit Transfer

SEPA Credit Transfer

Modulr submits payments to the scheme every 2 hours between 06:00 and 14:00 UK time, Monday to Friday with payments typically settling within 2 to 3 hours. Upon receipt of settlement confirmation, the status of the payment will update to PROCESSED.

Note: SEPA Credit Transfer rejections are asynchronous. Payments submitted via SEPA Credit Transfer will always settle before the beneficiary PSP can reject or return them. Where a beneficiary PSP wishes to reject a payment, a return is initiated after settlement — a PAYIN webhook will be triggered with a return reason.

The status of the original payment is not updated, as the return is processed as a separate transaction.

SEPA Instant Credit Transfer

Modulr submits payments to the scheme 24/7/365 with payments settling within 5 seconds. Upon receipt of settlement confirmation, the status of the payment will update to PROCESSED.

Due to the nature of the scheme, participants may experience transient planned or unplanned unavailability, during which payments can be rejected.

Note: SEPA Instant Credit Transfer rejections are synchronous — a payment can be rejected by any entity in the chain between Modulr and the beneficiary PSP before settlement occurs. Where a payment is rejected, Modulr will attempt automatic recovery where applicable. See Rejected Outbound Payments for full details.

Rejected Outbound Payments

Where a SEPA Instant Credit Transfer payment is rejected, Modulr will attempt to recover the payment automatically depending on the reason for rejection:

Temporary failures (e.g. a timeout between Modulr and the recipient bank): Modulr will automatically resubmit the payment as a SEPA Instant Credit Transfer up to two additional times within a short period.
Routing failures: Modulr will automatically resubmit the payment as a SEPA Credit Transfer.
Rejected by the beneficiary PSP where SEPA Credit Transfer is known to be accepted: Where you have opted in to this behaviour — by written request to your Customer Success Manager — Modulr will automatically resubmit the payment as a SEPA Credit Transfer.

Where a payment is still rejected following all applicable retries, or where none of the above conditions apply, the payment will reach a final status of ER_EXTSYS. Further detail on the rejection reason is available in the Message element by calling GET /payment.

Rejection Reference

`Message`	Possible further action
Issue whilst sending to the beneficiary PSP. Resubmit new request later or specifically send as SEPA Credit Transfer in new request via API or Portal	A clearing error prevented the payment from completing; this may be transient. Either resubmit a new SEPA Instant Credit Transfer or force a SEPA Credit Transfer using the `permittedScheme` parameter.
Rejected by beneficiary PSP - Account blocked	Payment cannot be made to this account.
Rejected by beneficiary PSP - Account closed	Payment cannot be made to this account.
Rejected by beneficiary PSP - Amount exceeds imposed limits	Payment cannot be made due to a limit applied in clearing or by the beneficiary PSP.
Rejected by beneficiary PSP - At request of beneficiary	Payment cannot be made at the request of the payer; seek clarification from your payer.
Rejected by beneficiary PSP - Beneficiary deceased	Payment cannot be made to this account.
Rejected by beneficiary PSP - Duplicate payment indicated	Payment was flagged as a duplicate. If the payment is required, resubmit with a unique reference.
Rejected by beneficiary PSP - Incorrect or invalid address information	Payment cannot be made due to a deficiency in the address information provided; correct and resubmit.
Rejected by beneficiary PSP - Incorrect or invalid IBAN	Payment cannot be made due to an invalid IBAN; correct and resubmit.
Rejected by beneficiary PSP - Missing beneficiary name or address	Payment cannot be made due to missing address information; correct and resubmit.
Rejected by beneficiary PSP - Missing originator IBAN	Payment cannot be made due to missing originator information; correct and resubmit.
Rejected by beneficiary PSP - Missing originator name or address	Payment cannot be made due to missing originator information; correct and resubmit.
Rejected by beneficiary PSP - Reason not specified; If desired, specifically send as SEPA Credit Transfer in new request via API or Portal or seek alternative beneficiary account to make payment	The beneficiary PSP did not provide a reason for rejection; this may be transient. Consider forcing a SEPA Credit Transfer using the `permittedScheme` parameter — though this may also result in a return — or request an alternative account from your payer.
Rejected by beneficiary PSP - SEPA Instant not accepted against this account; If desired, specifically send as SEPA Credit Transfer in new request via API or Portal or seek alternative beneficiary account to make payment	The beneficiary account does not support SEPA Instant Credit Transfer. Force a SEPA Credit Transfer using the `permittedScheme` parameter, or request an alternative account from your payer.
Error during processing	A general technical error occurred. Resubmit a new SEPA Instant Credit Transfer or force a SEPA Credit Transfer using the `permittedScheme` parameter. If the issue persists, raise with Modulr Support.

Updated 6 days ago