GBP 25 for wire transfer to the EU?
Thread poster: PCovs

PCovs
Denmark
Local time: 08:51
Member (2003)
English to Danish
+ ...
Aug 15, 2011

I am negotiating payment terms with a potential client, who prefers PayPal.
Due to the lousy exchange rates and hefty charges when withdrawing money from PayPal, I prefer a wire transfer, which would cost me around 2 GBP at the receiving end, flat fee.

This client would rather avoid the wire transfer, as he/she is charged GBP 25 flat fee per transaction.

WOW. I am stunned. This is hefty, I think. None of my other British clients have ever complained about such a hefty charge, so my question is: is this really the going rate for wire transfers from the UK to DK (as it happens) or to anywhere in the EU for that matter?


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4leavedClover  Identity Verified
Bulgaria
Local time: 09:51
English to Bulgarian
+ ...
Even more Aug 15, 2011

Some time ago I was charged GBP 30 for a transfer from my bank account in the UK to Bulgaria (EU member-state)

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Per Magnus  Identity Verified
Local time: 08:51
English to Norwegian
That is too expensive. Aug 15, 2011

The going rate to and from Norway is 4 GBP. Your client probably does not know about SWIFT/BIC – IBAN, and then the rate is awful.

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Peter Shortall  Identity Verified
Local time: 07:51
Member
French to English
+ ...
Wouldn't surprise me Aug 15, 2011

One well-known UK bank quoted me £19 (flat fee) for bank transfers to another EU country. That was about 2-3 years ago, I think, so a fee of £25 wouldn't surprise me at all. If your potential client wants to avoid a high charge, there is a new service in the UK offered by Travelex called Send Money Now, with a charge of 99p for overseas transfers of up to £2,500 (payments take 5 days, but there is a 2-day option which costs more). I haven't used it myself, though.

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philgoddard
United States
Member (2009)
German to English
+ ...
Your customer is being ripped off. Aug 15, 2011

Both countries are now part of the Single European Payment Area, which means that all transfers are effectively domestic. In theory they should be free, but my bank charges GBP8. Your customer should try asking for SEPA payments.

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Ivana UK  Identity Verified
United Kingdom
Local time: 07:51
Member (2005)
Italian to English
The cost varies Aug 15, 2011

but £25 is fairly standard for transfers to Europe.

Santander charges:

£25 per transfer when sending Sterling outside UK.

£25 per transfer when sending Foreign Currency abroad.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1210607023591&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_TemplateA2#Sending%20a%20payment%20to%20someone%20overseas;

Lloyds TSB charges:

Question 1. How much money are you sending?

The Lloyds TSB transfer charge you pay depends on the amount of money you send and how you send it:

Online

* If you are sending less than £5,000 = £10
* If you are sending £5,000 or over = £17.50

Branch and Telephone

* If you are sending less than £5,000 = £20
* If you are sending £5,000 or over = £35

http://www.lloydstsb.com/travel/sending_money_abroad.asp#tab2


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Marjolein Snippe  Identity Verified
Netherlands
Local time: 08:51
Member (2012)
English to Dutch
+ ...
GBP 9 Aug 15, 2011

I transfer money to the EU (The Netherlands) on a regular basis and HSBC charges a 9 pound flat fee. This is using IBAN / BIC and for amounts between 500 and 2500 GBP (I don't know if the amount makes a difference, these are simply the sums I have experience with).

[Edited at 2011-08-15 15:41 GMT]


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Sonia Hill
United Kingdom
Local time: 07:51
Italian to English
Fairly standard in the UK Aug 15, 2011

Last time I paid a bank transfer to the EU my bank (First Direct) charged me £20 and I think the others all charge about the same.

Edited to add that this was done by telephone banking as that was the only option available to me at the time.

[Edited at 2011-08-15 16:23 GMT]


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Hazel Underwood  Identity Verified
United Kingdom
Local time: 07:51
Member (2005)
German to English
+ ...
Unfortunately agree Aug 15, 2011

I looked into this and was going to be charged £25 by Santander too so opt for Moneybookers.

Although I have just discovered that the Post Office do fee-free bank transfers for amounts starting at £250 so am going to look into that too.


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Manuela Junghans  Identity Verified
United Kingdom
Local time: 07:51
Member (2004)
English to German
+ ...
GBP 9.50 Aug 15, 2011

from my bank in the UK to both Germany and Spain.

But as far as I know this is only the rate you pay, if you transfer the money via online banking. If you do it via telephone banking or at the branch, you pay about double that.


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Sheila Wilson  Identity Verified
Spain
Local time: 07:51
Member (2007)
English
+ ...
Normal for me Aug 15, 2011

My UK bank charges a minimum of £23 to send money to France, and that's using the IBAN code. I can do it for £19 by internet banking, with various limitations.

It does seem at odds with the statement that all transfers between EU countries have to be based on domestic tariffs, but my bank certainly isn't listening to me.


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Paul Skidmore  Identity Verified
Germany
Local time: 08:51
German to English
cross-border payments in euro Aug 15, 2011

My understanding, see the Commission website

http://ec.europa.eu/internal_market/payments/crossborder/index_en.htm and Regulation No 924/2009

is that the Community rule is slightly more nuanced than some people think.

From what I understand, cross-border payments in euro should not be charged to differently to domestic transfers in euro. Therefore, the reference should first be to what domestic transfers in euro cost. If these are free, then, in principle, the cross-border transfer in euro should be free. This is subject to a maximum limit of EUR 50,000 and the requirements for IBAN and BIC etc.

However, as far as I can see banks in the UK can get away with high fees either because they charge these for conversion of GBP to EUR or because they are not providing cross-border transfers in euro but in GBP leaving it to the foreign bank to make the conversion into euro.

Whatever the macro-economic arguments may be for the UK joining or not joining the euro, at a practical level, there are clearly transaction costs involved for British businesses / clients wishing to do business in the euro area.

HTH Paul


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Gillian Searl  Identity Verified
United Kingdom
Local time: 07:51
Member (2004)
German to English
Britain is not part of the euro Aug 16, 2011

So SEPA payments are subject to a charge at around that level. Another Great British banking rip-off

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Louisa Berry
United Kingdom
Local time: 07:51
Member (2009)
German to English
+ ...
Agree with Paul and Gillian Aug 16, 2011

Yes, payments from the UK to Europe normally involve a fee. I asked a few banks recently and the standard seemed to be £20-25

I receive SEPA payments from Europe for free into my UK sterling bank account as they are sent in Euro, I just take a hit on a not so great exchange rate.


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GBP 25 for wire transfer to the EU?

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