What is SEPA, and How Does Stripe Charge for It?

🏦 What is SEPA?

SEPA stands for Single Euro Payments Area (SEPA), which is an initiative to simplify cashless payments and create consistency for transactions within and among EU member countries. Established by the European Payment Council (EPC) and regulated by the European Central Bank, SEPA allows individuals and businesses to make domestic and cross-border payments under the same conditions, regardless of national borders. It works similarly to ACH in the U.S. or PAD in Canada, but it's designed for use across EU member states and other SEPA countries.

💳 How SEPA Works in Stripe

When you enable SEPA Direct Debit in Stripe:

• Families authorize your organization to debit their bank account.
• Payments are processed in euros through the SEPA network.
• Funds are not immediately available — confirmation can take up to 5 business days.
• SEPA is considered a “delayed notification” payment method.

Stripe recommends setting up webhooks to be notified when payments are fully confirmed, so you don’t fulfill services before the payment clears.

✅ What does “delayed notification” mean?

In Stripe, a “delayed notification” payment method means that:

💬 You don’t get immediate confirmation when a customer submits the payment — the funds take a few days to process, and Stripe only notifies you once the payment is successfully completed (or failed).

🔍 In the case of SEPA Direct Debit:

• When a parent submits payment, Stripe initiates the debit from their bank account.
• But the confirmation of success can take up to 5 business days.
• During that time, the transaction is pending, and funds are not yet guaranteed.

List of SEPA countries

👉As of May 2025, there are 41 countries in the SEPA zone, including many non-EU countries.

💶 SEPA Direct Debit Fees

Stripe charges a per-transaction fee when your school receives a SEPA payment.

There may also be additional charges for things like currency conversion, failed payments, or disputes.

🔗Sources:

• Stripe Local Payment Methods Pricing: Stripe Pricing for Local Payment Methods
• Stripe Support Article on SEPA Direct Debit Pricing Update (June 2024): June 2024 pricing update for SEPA Direct Debit - Stripe Support
• SEPA Direct Debit Overview: https://stripe.com/docs/payments/sepa-debit
• Stripe Pricing for SEPA: https://stripe.com/pricing