Cross border payments

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Definition

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

Typology of cross-border payments
There are two criteria to consider when making a cross-border payment. The first is the payment method and the second is the currency used.

There are two main payment methods:
1- Bank transfer;
2- Direct debit.

For France, there are two types of currencies:
1- the Euro;
2- other currencies.

Please note that transfers and direct debits in Euros are governed by the Single European Payment Area (SEPA) regulation, which designates the Single Euro Payments Area. This is a project that aims to create an integrated European payments market for companies and individuals who make or receive payments in euros.

The SEPA zone corresponds to the European Community, with the addition of Andorra, Iceland, Switzerland, Monaco, Liechtenstein and Norway.
For other currencies and countries, there are no supranational regulations, which raises issues regarding the cost and speed of settlement of transactions.