Recent reduction in cost of IBAN transfers?
Thread poster: Neil Coffey

Neil Coffey  Identity Verified
United Kingdom
Local time: 07:24
French to English
+ ...
Apr 10, 2014

I've just made an IBAN transfer (from UK to outside the EU) and, whereas my bank has historically charged me £17 for such a transfer for the same amount, they only charged me £4 this time.

Has anybody else noticed this or know any more about it? I'm assuming my bank didn't suddenly reduce the fee out of kindness for humanity -- has there been EU regulation that has suddenly forced the banks to finally stop ripping us off over transfer fees? (I know there was a couple of years ago for transfers within the EU, but in this case I was transferring outside the EU.)

If this reduction is permanent, it could make quite a bit of a difference to whether IBAN transfer vs other forms of payment is the most viable option in some cases.


Direct link Reply with quote
 

Milan Condak  Identity Verified
Local time: 08:24
English to Czech
REGULATION (EU) No 260/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Apr 10, 2014

Neil Coffey wrote:

I've just made an IBAN transfer (from UK to outside the EU) and, whereas my bank has historically charged me £17 for such a transfer for the same amount, they only charged me £4 this time.

Has anybody else noticed this or know any more about it?



Hi Neil,

Thank you for information.

I wrote about it in Czech forum in January 2014, a link to eur-lex:

http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012R0260

Milan Condak


Direct link Reply with quote
 

Paul Skidmore  Identity Verified
Germany
Local time: 08:24
German to English
Payments in euro using a IBAN? Apr 10, 2014

Hi Neil,

The EU does not regulate the actual level of charges for credit transfers. There are however rules ensuring that certain cross-border transfers do not cost more than national transfers:

See, for example, Regulation (EC) No 924/2009

http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1397137226347&uri=CELEX:32009R0924

The Regulation to which Milan refers is probably a bit of a red herring in your case. It is connected to the whole SEPA (single euro payments area) project.

Article 1 provides

"This Regulation lays down rules for credit transfer ... transactions denominated in euro within the Union"

So you need to be making a payment in euro and within the EU for this Regulation to apply.

What UK banks are doing may result possibly from pressure applied by the national competition authorities.

Paul


Direct link Reply with quote
 
philgoddard
United States
Member (2009)
German to English
+ ...
Which country, Neil? Apr 10, 2014

The SEPA includes countries that aren't EU members, such as Switzerland.
If it's not within SEPA, then you're presumably making a SWIFT payment. SWIFT has substantially reduced its charges, though not by the proportion you mention:

http://forexmagnates.com/swift-announces-rebate-as-2013-volumes-hit-record-high-5-billion-messages/


Direct link Reply with quote
 

Giovanni Guarnieri MITI, MIL  Identity Verified
United Kingdom
Local time: 07:24
Member (2004)
English to Italian
I did one last month... Apr 10, 2014

from the UK to Italy, online, and the fee charged by my bank (NatWestOfTime... ) was £10...

Direct link Reply with quote
 

dianaft  Identity Verified
United Kingdom
Local time: 07:24
Member (2013)
German to English
+ ...
What bank??? Apr 10, 2014

That's a huge difference, I might well consider switching banks for that! I am still (just tried it 5 minutes ago) being charged £10 for a regular transfer and £30 for express (RBS).

Direct link Reply with quote
 

Neil Coffey  Identity Verified
United Kingdom
Local time: 07:24
French to English
+ ...
TOPIC STARTER
Looks like it's treated as a SEPA payment but wasn't before... Apr 10, 2014

Looking into this a bit more what appears to be happening, for reasons I can't really explain, is that the transaction is being treated as a SEPA payment, whereas before it wasn't. Transfer was to Latin America, so fairly sure it's outside the SEPA area in principle, but maybe the bank routes it through a European subsidiary or something?? Curiously, when I go to make an international transfer, the system tells me that it will charge £4 for the transfer before even asking me what country I want to transfer to.

Bank is HSBC and price list is here in case it's useful to anyone: https://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/pws/content/personal/pdfs/general-price-list.pdf


Direct link Reply with quote
 

Faustine Roux  Identity Verified
United Kingdom
Local time: 07:24
English to French
... Apr 10, 2014

Neil,

I received an email from HSBC telling me they now charge £4 for all international payments.


Extract from the email:

"We've now simplified our fees, which means you can safely send money online, through Personal Internet Banking, to over 150 countries around the globe for just £4*. Just so you know, if you are sending money in non European currencies or to non European countries, you may incur agency and beneficiary bank charges, which are outside of our control.
[...]

* This payment fee is only applicable for online transfers."

Mystery solved.


Direct link Reply with quote
 

Neil Coffey  Identity Verified
United Kingdom
Local time: 07:24
French to English
+ ...
TOPIC STARTER
Thanks @Faustine Apr 10, 2014

Faustine Roux wrote:
I received an email from HSBC telling me they now charge £4 for all international payments.


Thanks! -- I must have missed that e-mail among the bumf about balance transfers, cattle insurance and wotnot...


Direct link Reply with quote
 

Michael Joseph Wdowiak Beijer  Identity Verified
United Kingdom
Local time: 07:24
Member (2009)
Dutch to English
+ ...
Thanks Faustine! Apr 12, 2014

Same here, must have missed that email. I’m also with HSBC.

Not that I send money internationally though through my bank as I use Smart Currency Exchange to send myself euros from my Spanish € account (which is where all my EU clients pay) to my British £ account.

I’ll have to look into whether £4 per transfer is any less than I get charged by Smart Currency Exchange. As far as I remember, they don't charge anything, as long as you transfer a decent amount every now and then. I think they make their money off the exchange rate. Btw, the rate they employ is always way better than the one chosen by HSBC or any other bank.

Michael


Direct link Reply with quote
 

Decipherit  Identity Verified
United Kingdom
Local time: 07:24
Portuguese to English
+ ...
Swings and roundabouts Apr 12, 2014

Since the big SEPA changes that happened in February, my bank in France has not charged me anything for transfers (it was previously € 3.50). However, it all comes out in the wash; they're banks - when they don't charge a fee they make up for it on the exchange rate. You can be certain they'll still make money from the transaction.

Direct link Reply with quote
 

Thayenga  Identity Verified
Germany
Local time: 08:24
Member (2009)
English to German
+ ...
Nothing is free Apr 13, 2014

Lisa Simpson, MCIL MITI wrote:

However, it all comes out in the wash; they're banks - when they don't charge a fee they make up for it on the exchange rate. You can be certain they'll still make money from the transaction.


Exactly, banks are businesses that will make money one way or another. If their goals were even slightly different, the EC wouldn't have had to raise billions to support "greedy" banks/bankers.


Direct link Reply with quote
 


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

Recent reduction in cost of IBAN transfers?

Advanced search







Déjà Vu X3
Try it, Love it

Find out why Déjà Vu is today the most flexible, customizable and user-friendly tool on the market. See the brand new features in action: *Completely redesigned user interface *Live Preview *Inline spell checking *Inline

More info »
WordFinder
The words you want Anywhere, Anytime

WordFinder is the market's fastest and easiest way of finding the right word, term, translation or synonym in one or more dictionaries. In our assortment you can choose among more than 120 dictionaries in 15 languages from leading publishers.

More info »



Forums
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search