IBAN and SEPA

In short: The IBAN is the international account number, and SEPA is the single euro payment area in which transfers and direct debits follow the same rules.

In more detail: A German IBAN has 22 characters: “DE”, two check digits, an eight-digit bank code and a ten-digit account number. The check digits are calculated with the modulo 97 method. This catches most typing errors before money is sent.

Our context: The invoice generator checks the IBAN live (modulo 97) and builds a SEPA payment QR code (EPC QR) from it that you scan with your banking app.

In Depth

• Calculating check digits: Move the first four characters to the end, replace letters with numbers (A=10 … Z=35) and compute the number modulo 97. The result must be 1.
• SEPA credit transfer: Usually one banking day. SEPA Instant: money in seconds, around the clock.
• SEPA direct debit: The payee collects. The payer can return authorised debits within eight weeks, unauthorised ones for up to 13 months.
• Reference: up to 140 characters.
• BIC: No longer needed for domestic transfers within SEPA.

See also: Writing an invoice (mandatory details under § 14 UStG)