Luxembourg: Global Payments Guide
- Supported currencies receiving(EUR, USD)
- Supported currencies sending(EUR)
- Delivery time: {1-2 working days (SEPA), 1-5 working days (SWIFT)}
- Supported by : (SWIFT, SEPA)
Luxembourg, despite its size, is a financial powerhouse, offering robust services and a favorable tax environment (sometimes below 1%) that attracts global businesses. Known for fintech innovation, it provides wide access to European and international markets. This payment guide will walk you through sending money from the UK to Luxembourg and how 8S Money’s International Business Account can simplify the process.
What payment networks are supported in Luxembourg?
Luxembourg supports several key payment networks:
- SEPA: For euro payments within Europe.
- SWIFT: Global network for secure international transfers.
- TARGET2: Real-time euro transaction system.
- LuxCSD: Securities settlement system in Luxembourg.
SEPA, or Single Euro Payments Area, simplifies transferring money across Europe. It provides fast, secure, and efficient payment methods like credit transfers, direct debits, and payment cards. Despite Brexit, the UK remains part of SEPA, making transfers to Luxembourg as easy as domestic transactions. SEPA ensures secure and straightforward payments.
SWIFT, or Society for Worldwide Interbank Financial Telecommunications, is a global messaging network that helps financial institutions communicate and process transactions using unique SWIFT codes. Unlike SEPA, which is fast and efficient, SWIFT transfers can take up to four working days to complete. It’s ideal for international transactions between different banks.
TARGET2, or Trans-European Automated Real-time Gross Settlement Express Transfer System, is a Eurozone-specific payment system that handles Euro transactions with real-time, immediate settlement. It ensures efficient and reliable processing of Euro payments, supporting the smooth operation of the Euro area’s financial system.
With a much more domestic focus than the other payment networks in this list, LuxCSD exists to provide Luxembourg’s money market and financial community with settlement services in EUR central bank money. The network is technically a central securities depository (CSD for short) and allows custodian banks and European distributors a highly efficient settlement process. This method acts to lower risk for financial market participants.
What payment methods are available for sending money to Luxembourg?
Here are the key payment methods for Luxembourg:
- Bank Transfers: Simple but can be expensive due to fees and FX costs. Rates vary between banks.
- Payconiq: A Luxembourg-based mobile payment app linking cards or bank accounts for easy transactions.
- ePayments (PayPal, V PAY, Bancontact): Free transfers using services like PayPal, V PAY, and Bancontact, no need for card details.
Key factors to consider when sending money to Luxembourg
While sending money to Luxembourg is straightforward, there are still various important factors to consider before choosing your payment method and provider.
Exchange rate (FX) fluctuations
When sending money to Luxembourg, always consider FX rates. With a 8S Money Business Account, you benefit from competitive rates thanks to our dedicated FX desk.
Transfer fees
Traditional banks can have high fees for regular payments to Luxembourg. With 8S Money, SEPA fees range from 5 USD to 0.5 USD, SWIFT outgoing from 20 USD to 1 USD, and incoming from 10 USD to free.
Transfer Speed
In international business, transfer speeds are crucial. While many methods can take up to five working days, 8S Money offers same-day payments.
How to send money to Luxembourg with 3S Money
Sending money to Luxembourg is straightforward with 3S Money’s International Business Account. Here’s how:
- Open Your Account: Check your eligibility and start the application process.
- Enter Transfer Details: Provide the recipient’s name, account details, and select the Euro currency.
- Hit Send: Confirm the details and send the payment, usually processed within two hours.
Benefits with 3S Money:
- Dedicated client manager for personalized service
- Access to 65+ currencies, including the Euro
- Global reach to over 190 countries
- No translation limits
- Ultra-competitive FX rates
Need more information? Reach out to us, and we'll be happy to assist you.
Our team is here to guide you through the process of opening your business account, all without needing to step into a bank. We speak over 12 languages, so let us know if you’d like to schedule a call in your native language.
