What's the difference between Credit Card payment and SEPA payment?

Unsure of what the differences are between these 2 payment options are? Read below to learn more about payment with Credit Card or SEPA

SEPA (Single Euro Payments Area) payments and credit card payments are two different methods of making financial transactions, each with its own characteristics and mechanisms.

Here are the main differences between them:

Payment Mechanism:

SEPA payments are bank-to-bank transfers conducted within the SEPA area, which encompasses the 27 EU member states, as well as Iceland, Liechtenstein, Norway, Switzerland, Monaco, and San Marino. SEPA payments are typically used for transactions such as direct debits, credit transfers, and recurring payments.

Credit card payments involve the use of a credit card issued by a financial institution. The cardholder provides their card details (card number, expiration date, CVV) to the merchant, who then processes the payment through a card network (e.g., Visa, Mastercard, American Express). The credit card issuer pays the merchant on behalf of the cardholder, and the cardholder later repays the issuer.

Funding Source:

SEPA payments are usually funded directly from the payer's bank account. The funds are transferred from the payer's bank to the payee's bank.

Credit card payments involve using a line of credit provided by the credit card issuer. The cardholder may repay the amount owed in full at the end of the billing cycle or choose to carry a balance and pay interest on it.

Processing Time:

SEPA payments typically take 1-2 business days to process, although some transactions may take longer depending on factors such as the banks involved and the time of submission.

Credit card payments are usually processed instantly or within a few seconds, although the settlement of funds to the merchant's account may take a few days.

Transaction Costs:

SEPA payments often have lower transaction costs compared to credit card payments, especially for large transactions.

Credit card payments may involve interchange fees, processing fees, and other charges imposed by the card networks and the card issuer.

Usage and Acceptance:

SEPA payments are primarily used for domestic and cross-border bank transfers within the SEPA area, including payments such as salaries, bills, and supplier payments.

Credit card payments are widely accepted for various types of transactions, both online and offline, including retail purchases, online shopping, travel bookings, and recurring subscriptions.

In summary, while both SEPA payments and credit card payments serve the purpose of facilitating financial transactions, they differ in terms of their mechanisms, funding sources, processing times, transaction costs, and usage scenarios.

In short, the point to each payment type is;

SEPA Payments:

Bank-to-bank transfers in Europe.

Money moves directly from one bank account to another.

Takes 1-2 business days to process.

Lower transaction costs.

Used for salaries, bills, and supplier payments.

Credit Card Payments:

Use a credit card issued by a bank.

Funds are paid by the credit card issuer.

Instant or quick processing.

Higher transaction costs.

Widely accepted for various purchases online and offline.

Turis offers both payment options seamlessly, powered by Stripe, to cater to your convenience. Whether you prefer credit card payments or transfers of SEPA payments, Turis has you covered. With Stripe's secure and reliable technology, you can enjoy effortless transactions, ensuring a smooth and hassle-free experience for you and your buyers.

To connect Stripe in Turis, please follow this guide: Payments

To activate SEPA on your Turis account, please contact support@turis.app

Don't have a strip account yet to connect with Turis? Create one here: Register or sign-in to Stripe: Sign-in

If needed you can visit Stripe's Help & Support center on this link: Stripe Support

🔔 Please note: In Stripe all transactions are encrypted and securely processed.