eli5: What are differences between SEPA, TARGET2, and BACS payments?
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SEPA is a payment system used in Europe. If you want to send money to someone who lives in a different country in Europe, you can use SEPA to do it. It’s like sending money to a friend who lives in a different part of Europe.
TARGET2 is another payment system used in Europe. It’s a bit different from SEPA. TARGET2 is used by banks and other financial institutions to send large amounts of money to each other. It’s like sending money to another bank to keep it safe.
BACS is a payment system used in the United Kingdom. If you want to send money to someone in the UK, you can use BACS to do it. It’s like sending money to a friend who lives in the UK.
All three of these payment systems make it easy to send money electronically, but they’re used in different places and for different types of payments.
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