EU Regulation about transfers in euro

This regulation could make it worth opening a euro account in a UK
bank.
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Brussels, 26th June 2003
EU Regulation aligns charges for cross-border transfers in euros
As from 1 July 2003, cross-border bank transfers in euros within the
EU will cost the same as domestic transfers, bringing significant
savings for customers. This measure is being introduced in accordance
with Regulation (EC) No 2560/2001 on cross-border payments in euros,
which establishes the principle of equal charges for domestic and
cross-border payments. The rule came into force in July 2002 for bank
card payments and withdrawals from cash machines (see IP/02/941 and
MEMO/02/154); it will now apply from 1 July 2003 onwards to bank
transfers. In recent years, a ?100 transfer has cost the customer on
average ?24 in charges (see IP/01/1293 and MEMO/01/294). For more
details on the Regulation, see also Frequently Asked Questions
MEMO/03/140.
Commission President Romano Prodi welcomed this development: "The
advantages of the single currency should benefit everyone: that is the
aim of the Regulation. Since July 2002 our citizens have been able to
withdraw cash and make bank card purchases throughout the euro area
without incurring extra costs in comparison with what they would pay
in their own country. Now they will also be able to make bank
transfers in euros to other countries without losing money through
excessive charges. With the creation of the single payments area, the
benefits of European integration can be seen in daily life."
Single Market Commissioner Frits Bolkestein added: "This Regulation is
essential for the efficient functioning of the Single Market. When
goods or services are sold across a border, payments cross the same
border in the opposite direction. If the cross-border payment
generates extra costs, the Single Market is not functioning properly.
The high level of charges for cross-border transfers has been a real
barrier to free movement."
Payments concerned
The principle of equal charges will apply to transfers in euros of up
to ?12 500 made between two euro accounts within the EU.
In order to qualify for equal charges, customers must provide their
bank with the beneficiary's IBAN (International Bank Account Number)
and BIC (Bank Identifier Code).
From 1st July 2003, all bank statements will show the account holder's
IBAN and BIC. Firms engaged in cross-border business are likewise
required to indicate these particulars on their invoices. It will
therefore be easier for the originator of the payment to find the
necessary information.
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How will the Regulation apply to transactions with EU countries that
are outside the euro area?
If a Belgian firm sends a transfer in euros to a UK firm with a euro
account, the Regulation is applicable. The payment originator will pay
the same charges as for a domestic transfer. If the UK firm makes euro
payments to the euro area, the charges to the issuer will be the same
as for a euro transfer within the United Kingdom, and costs to the
recipient, if any, will be the same as for a domestic transfer.
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Reply to
Pat Norton
I've just made use of this service with no problems. Accepted transfer from Euro (Belgium) into my UK personal current account. The chap arranging the transfer paid no charges & neither did I. Took approx 3 days to get to me, just quoting IBAN & BIC (same as Swift code for my bank). Not sure how they work the conversion to though when it hit the UK. Vic
Reply to
Vic
The Directive stipulates that the transaction is in Euro, which is the case when the originating account is a Euro account. It doesn't require that the recipient account is a Euro account.
Reply to
Norbert

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