Luxembourg is a eurozone financial hub dense with international banks, where most adults hold a bank account and use SEPA transfers as a matter of course. Rather than having its own separate national transfer scheme, it relies on the eurozone-wide SEPA credit transfer (including instant transfer) infrastructure to fill that role, so in this country bank transfer is the basic account-based payment path outside of cards.

Because transfers, unlike cards, carry no chargebacks, the risk of non-payment on high-value transactions tends to be lower, making them a valid complement to cards and PayPal for Korean merchants selling high-ticket products or taking B2B-type orders. However, since the consumer must actively carry out the payment step themselves, this is a lower priority for low-value, impulse-purchase-type products.

After placing an order, the consumer carries out a SEPA transfer to the merchant from their own bank's online banking, with the authentication in the bank login process taking place under the PSD2 framework. Once the deposit is confirmed, Hecto Financial receives the euro (EUR) funds, converts them, and settles them with the Korean merchant in whichever of USD, KRW, or JPY was selected at the time of contracting. Between banks where instant transfer (SCT Inst) applies, the time to deposit confirmation is greatly shortened.

Bank transfer is a generic method that uses the common SEPA infrastructure rather than being run by a specific operator, so integrating through Hecto Financial also involves designing the deposit-confirmation and order-matching approach together. A Korean merchant can consider it without a local Luxembourg account, and the support conditions require a consultation before contracting, depending on industry and transaction volume.

• Business registration country

  Confirm whether a contract is available under a Korean business registration

• Sales channels

  The integration method and priorities differ depending on your online sales channel mix, such as an owned storefront, open marketplaces, or a mobile app

• Product categories

  Check in advance whether your products fall under a restricted category under Bank transfer's merchant policies

• EU regulatory compliance

  Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)

The starting point for settlement is the euros (EUR) transferred by the consumer. Hecto Financial receives these funds, converts them, and pays the Korean merchant in whichever of USD, KRW, or JPY was designated in the contract. Because transfer payments carry no chargebacks, a refund instead requires a return transfer procedure to the consumer's account, so please build the refund processing deadline into your operating policy in advance.

• Central Bank of Luxembourg (Banque centrale du Luxembourg) and the Luxembourg Financial Sector Supervisory Commission (CSSF)Official information on Luxembourg's payment systems and financial supervision. If this page's content differs from actual regulations, the official source takes precedence.