SCT

Definition

The SCT (SEPA Credit Transfer) is the classic SEPA credit transfer: an account-to-account transfer in euros, across the ~40 SEPA countries, executed within a maximum of one business day.

Free or near-free, with no regulatory ceiling, it is the default mode for salaries, invoices and supplier payments — all the flows where instant speed is not critical.

SCT vs SCT Inst: which to use

• SCT — up to one business day, generally free, no regulatory ceiling, available everywhere in the SEPA zone.
• SCT Inst — under 10 seconds, 24/7, ceiling of €100k, free for individuals in the eurozone since the IPR.

Simple rule: if speed is not critical, SCT; if you need to confirm the arrival of funds immediately, SCT Inst.

How an SCT works

1. The payer (PAO) initiates the order with their bank (via app, web, or a PISP).
2. The bank checks the funds, authenticates (SCA if a new payee), then forwards it to a clearing system: CORE(FR) domestically, STEP2 cross-border.
3. The clearing system forwards it to the payee's (PR) bank, which credits the account.
4. Standard timing: D+1 business day at most, often a few hours in practice.

What an SCT allows

• Transferring any amount in EUR (banks set their own anti-fraud limits).
• Including a reference (Remittance Information) of up to 140 characters.
• Being initiated by a PISP within the PSD2 framework.
• Being recurring via a standing order.

What an SCT does not allow

• Instant speed: that is the role of SCT Inst.
• Debiting the payee's account: an SCT is always initiated by the payer; for a payee-side debit, you need an SDD.
• A currency other than EUR.
• An automatic return: once executed, it is irrevocable (recovery is possible but cumbersome).

In the PSD2 ecosystem

The SCT is the foundational payment instrument in Europe: most of a lifetime's transfers are SCTs, even without knowing it — the "SEPA" label in the banking interface is the giveaway.

Concrete examples

• Salary: the employer launches a transfer file on the 28th of the month; employees are credited on the last business day, no urgency.
• Supplier payment: a €12,000 invoice settled from a Qonto or Shine business account, credited the next business day, free of charge.
• Rent: an SCT standing order pays the rent each month — the one-business-day timing is fine.
• B2B: most payments, especially on large amounts where instant speed adds nothing and an anti-fraud control window is useful.
• Implementation: exposing an SCT goes through the PSD2 APIs (POST /payment-requests in STET); a stable spec, supported by 100% of banks.
• UX limit: the one-business-day timing slows e-commerce and P2P — exactly the reason SCT Inst exists, made mandatory in 2025.