Cross-border payments

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What are cross-border payments?

A cross-border payment occurs when the buyer and seller are located in different countries. For example, the payment of an import by a French company from the United States qualifies as a cross-border payment.

What are the features of cross-border payments?

A cross-border payment is characterized by the payment method/instrument and the currency used.
There are two main payment instruments: Credit transfer and direct debit notice.
Regarding currency, there is a specific feature for European countries that distinguishes two types of currencies: the euro and other currencies.

All Credit transfers and direct debit notices in euros are governed by the Single European Payment Area (SEPA) regulation, which designates the Single Euro Payments Area. This project creates an integrated European payments market for companies and individuals who make or receive payments in euros. The SEPA zone covers the countries members of the European Community, with the addition of Andorra, Iceland, Switzerland, Monaco, Liechtenstein and Norway.

For other currencies and countries, there are no supranational regulation, which has an impact on cost and speed of transactions settlement.