Belgian based agency says "New Bank regulations from 1stJuly mean MUST split transfer charges"True?
Thread poster: DGK T-I

DGK T-I  Identity Verified
United Kingdom
Local time: 13:16
Georgian to English
+ ...
Jul 15, 2003

A Belgian based client agency (with quite a good track record for payment & honesty from the data bases) says that because of new bank regulations, from July 1st. it MUST whether it likes it or not, split bank transfer charges between sender (itself) and receiver (in UK).
They say that this will also apply to Euro amounts invoiced for, before 1st.July (despite being under an agreement made on the basis that sender would pay all charges for sending Euros).

My view is that if it is the case (sceptical, but oppinions welcome, please), the agency has in any case to honour an agreement which they already made (and been invoiced under, before July 1st) to pay a given amount for services on the basis that they took responsibility for transfer charges of the Euro amount - ie: they can't change their agreement retrospectively and should (if it is correct that charges really do HAVE to be split, in their case) add some of the money that their end client will pay them to the amount sent, so it comes out as agreed after charges are deducted.

Otherwise the agency would be awarding themselves extra money, and the receiver less.

I would like to ask - do colleagues agree or have other views?

Best wishes
Giuli

PS I have looked at the new EU regulation, press release & FAQ online, and found nothing that suggests an obligation to split charges, although it is possible the way domestic Belgian law or their banking system are implementing it may (or may not) have something to do with it.


 

Ralf Lemster  Identity Verified
Germany
Local time: 14:16
English to German
+ ...
It's possible Jul 15, 2003

Although the new EU regulations for cross-border payments have, in effect, reduced the transfer fees for cross-border payments in euro, this is tied to certain conditions:

- the amount must be less than EUR 12,500 (EUR 50,000 after 31DEC2005);
- the recipient's account must be identified using IBAN & SWIFT BIC;
- AFAIK a so-called "Europayer" transfer must be used.

IIRC the key is in the Europayer transfer - this is a standardised form of payment that does not permit the customised specification of who bears which charges.

What I would suggest to do is this:
- Ask your customer to specify what charges you're talking about.
- Insist on them using your IBAN & SWIFT BIC.
- Check with your bank that incoming transfers using IBAN & SWIFT BIC are credited free of charge (they should be, unless you're charged for incoming domestic payments in euro).

HTH - Ralf


 


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Belgian based agency says "New Bank regulations from 1stJuly mean MUST split transfer charges"True?

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