SEPA vs SWIFT: Differences, Costs and Transfer Times for Freelancers

The difference between SEPA vs SWIFT decides how much of your invoice actually reaches your account. A SEPA transfer inside Europe is usually free or almost free and arrives within a day. A SWIFT transfer can cost €20–50 or more and take several days, with fees deducted along the way.

The short answer: if your client pays in euros from a bank in the SEPA area, ask for a SEPA transfer. If the client is outside Europe or pays in another currency, ask them to use a local transfer to a multi-currency account, and use SWIFT only as a last resort, with the «OUR» charge option selected.

Fee note: banks set their own fees and they vary by country and account. The figures below are typical ranges; ask your client’s bank and your own bank for the exact tariff.

Key takeaways: SEPA vs SWIFT

SEPA vs SWIFT: SEPA is for euro payments inside Europe and is usually free; SWIFT is global but costs more.
SWIFT fees come from the sender’s bank, intermediary banks, the receiving bank and exchange-rate margins.
Ask clients to use the OUR option on SWIFT payments so that they pay all charges.
For US or UK clients, a local transfer to a multi-currency account usually beats either side of the SEPA vs SWIFT choice.

In this guide

SEPA vs SWIFT at a glance

Feature	SEPA	SWIFT
What it is	A European payment scheme for euro transfers	A global messaging network banks use to send international payments
Currency	Euros only	Almost any currency
Coverage	More than 35 European countries, including EU and EEA members, the UK and Switzerland	Over 200 countries and territories
Typical cost	Often free or a few cents	Often €15–50 sender fee plus possible intermediary and receiving fees
Speed	Same day to one business day; SEPA Instant in seconds	One to five business days
Currency conversion	None if both accounts are in euros	Frequently involved, with a bank margin
What you need	IBAN (BIC is usually not required)	IBAN or account number plus BIC/SWIFT code
Fee predictability	High	Low

What is SEPA?

SEPA, the Single Euro Payments Area, is a set of standards that lets people and businesses send euro payments across participating European countries as easily as a domestic transfer. In the EU, cross-border euro payments must generally cost the same as the equivalent domestic payment, which is why a SEPA transfer from Germany to Spain is usually free.

SEPA Credit Transfer: the standard transfer, usually settled within one business day.
SEPA Instant Credit Transfer: funds arrive within seconds, 24/7. In the EU, banks are required to offer instant euro payments, and the price must not be higher than for a regular transfer. Availability and limits depend on the bank.

To receive a SEPA payment you only need to give your client your IBAN and name, and a short reference such as the invoice number.

What is SWIFT?

SWIFT is not a payment system itself but a secure messaging network that banks use to instruct each other to move money. A SWIFT payment often passes through one or more intermediary (correspondent) banks, and each can charge a fee or apply an exchange rate.

You usually need the recipient’s account number or IBAN, the bank’s BIC/SWIFT code and the beneficiary name and address. Because the route can differ each time, the total cost is hard to predict.

Why SWIFT payments cost more

Sender’s bank fee. Typically a fixed charge for an international transfer.
Intermediary bank fees. Deductions along the route, sometimes $10–30 each.
Receiving bank fee. Many banks charge to credit an incoming international payment.
Exchange-rate margin. If the currency is converted, the bank uses its own rate, often 1–4% worse than the mid-market rate.

OUR, SHA and BEN: who pays the fees?

When your client sends a SWIFT payment, they choose how charges are split. Ask them to select the right option:

Option	Meaning	Effect on you
OUR	Sender pays all fees	You usually receive the full amount (your own bank may still charge a receiving fee)
SHA	Fees are shared: sender pays theirs, recipient pays theirs	Intermediary or receiving fees may reduce your payment
BEN	Recipient pays all fees	The largest deduction from your payment

Add a line to your invoice such as «All bank charges to be paid by the sender (OUR)». Not every bank honours it fully, but it helps.

Example: a €3,000 invoice from a client in another EU country

Method	Typical costs	You receive
SEPA transfer	Free or about €0–1	≈ €3,000
SWIFT transfer with SHA	€25 sender fee + €10 intermediary or receiving fees	≈ €2,965
SWIFT with a conversion by your bank	Fees plus 2% margin if the currency does not match	≈ €2,905 or less

On a single invoice the SEPA advantage is small, but across a year of monthly invoices it adds up to hundreds of euros.

SEPA vs SWIFT: which should you ask your client to use?

Client location and currency	Best option
Eurozone, paying in euros	SEPA (or SEPA Instant)
EU country outside the eurozone, paying in euros	SEPA, if their bank supports it
UK, paying in pounds	Local transfer to a GBP account, or SWIFT if there is no alternative
US, paying in dollars	ACH or domestic wire to a USD account. See how to receive ACH and wire payments from US clients
Anywhere else	Local transfer to a multi-currency account if possible; SWIFT with OUR otherwise

SEPA vs SWIFT: tips to reduce costs on international transfers

Give clients local account details whenever possible. See best multi-currency accounts for freelancers.
Invoice in the currency of your account so your bank has nothing to convert.
Ask your bank for the full international transfer tariff before the first payment arrives.
Check whether your bank offers a foreign-currency account to avoid forced conversion.
For large amounts, compare your bank’s rate with the mid-market rate. Read how to get the best exchange rate as a freelancer.

Security: avoid payment fraud

Bank details sent by email can be intercepted or spoofed. Put your IBAN on a PDF invoice rather than in the email body, confirm any change of details through a second channel, and be suspicious of urgent requests from a client to pay a new account. Check each incoming payment against the invoice reference.

Frequently asked questions about SEPA vs SWIFT

Is SEPA cheaper than SWIFT?

Yes. SEPA transfers in euros are usually free or very cheap, while SWIFT transfers often carry sender, intermediary and receiving fees plus a possible exchange-rate margin.

How long does a SEPA transfer take?

A standard SEPA credit transfer usually arrives within one business day, and SEPA Instant transfers arrive within seconds where supported by both banks.

How long does a SWIFT transfer take?

Typically one to five business days, depending on the banks involved, the currency and the countries.

Do I need a BIC or SWIFT code for SEPA?

No. For SEPA transfers within the EU an IBAN is normally enough.

What does the OUR option mean on a SWIFT transfer?

OUR means the sender pays all transfer charges, so you should receive the full amount, though your own bank may still apply a receiving fee.

Can I receive SEPA payments in a multi-currency account?

Yes. Many multi-currency providers give you a euro IBAN so clients can pay you by SEPA.

Final thoughts on SEPA vs SWIFT

In the SEPA vs SWIFT choice, SEPA wins whenever the client pays in euros from the SEPA area. For everything else, ask for a local transfer and use SWIFT only as a last resort. Understanding SEPA vs SWIFT saves you fees on every invoice.

Sources and further reading

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Disclaimer: This article is for general information only and is not tax, legal or financial advice. Fees, rates and rules change often and differ by country; always confirm current details with the provider and a qualified adviser. Some links may be affiliate links, which means we may earn a commission at no extra cost to you.