EU cross-border payments outside Eurozone: MEPs scrap excessive fees

Euro 2019

ECB’s HQ in Frankfurt, Germany (Unsplash, 2019)

This article is brought to you in association with the European Parliament.


Banks should charge equally for cross-border payments in euro and domestic payments and make currency conversion costs transparent, say new rules.

On Thursday, the plenary adopted by 532 votes in favour, 22 against and 55 abstentions, new rules to end discrimination against payment service users in the EU outside the Eurozone. Whereas consumers in the Eurozone benefit from the single euro payments area (‘SEPA’), those living outside continue to pay high costs for cross-border payments in euro.

Before the end of the year, charges for cross-border payments in euro within the EU must be in line with charges for national payments made in the official local currency (the ‘same charge’ rule). Additionally member states are free to impose rules on banks to apply the same charges to cross-border and domestic non-euro payments.

Transparent currency conversions for card-based transactions and bank transfers

The new measures will also protect consumers from being charged arbitrary costs for currency conversions. At each transaction, they will be informed about the amount to be paid in the local currency and the currency of their account. To make conversion costs more transparent, currency conversion charges will be expressed in a common way for payments at a point of sale or ATM (using the ECB reference rate, plus additional charges set individually by banks).

Consumers will receive an electronic push notification such as a text message, e-mail or notification through the payer’s mobile or web banking application about the applicable currency conversion charges. These notification services have to be offered free of charge.

Banks would also have to disclose the estimated full cost of currency conversion in the case of bank transfers before the payment is made.

Quote from Eva Maydell (EPP, BG), rapporteur

“150 million EU citizens and 6 million businesses living and operating in countries outside the Eurozone have been paying much higher charges for transferring euro than their Eurozone counterparts. This will no longer be the case and all Europeans will pay significantly lower charges, which will save them more than 1 billion euro annually. This is the second, small EU revolution after the abolishment of roaming fees.

It is a huge step forward to completing the Single Market for payments, putting Eurozone and non-Eurozone businesses on a level playing field. We proved once again that the EU could solve swiftly and effectively its citzens’ real, everyday problems.”

Background

Average fee for a cross-border EUR 100 equivalent transfer in local currency

Country 2012 2017
Bulgaria 18,68 € 19, 98 €
Croatia N/A 8,23 €
Czech Republic 9,50 € 8,71 €
Denmark 2,17 € 2,69 €
Hungary 15,32 € 5,93 €
Poland 2,73 € 1,54 €
Romania 12,58 € 11,19 €
Sweden 0 € 0 €
UK 15,63 € 9,26 €

Cross-border card payments and cash withdrawals from euro area member states

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Impact Investment needs global standards and better measurement

FROM THE FIELD: ‘Miraculous’ music made by hearing-impaired children

On Youth Education: “Just a normal day in the life of a medical student”

EU-Turkey relations: Will Turkey manage to revive the EU accession process talks?

Multilateralism more vital than ever, as World War centenary looms: Security Council

ECB steadily continues monetary easing policy as EU economy gains momentum

October’s EU strong digital mix: From Safe Harbour to Net Neutrality, Roaming and Snowden

Europe turns out more jobs this summer

EU regional differences betray an unjust arrangement

World Retail Congress Dubai 2016: Retail’s night of nights

WEF Davos 2016 LIVE: Banking moguls continue brandishing financial Armageddon to intimidate us all but in Davos they worry about the very distant future

“There are many converging visions and interests between the One Belt One Road initiative and the Juncker Investment Plan”, Ambassador Yang of the Chinese Mission to EU highlights from Brussels

Could switching between summer and winter time end in 2021?

Parliament ready to fight for a different EU budget

Why are the financial markets shivering again?

Parliament makes it easier to organise a European Citizens’ Initiative

Military escalation will have ‘serious consequences’ for Yemeni civilians, warns UN Special Envoy

Austerity ends in Eurozone, Germany is isolated

This is why Dutch teenagers are among the happiest in the world

Does the EU want GMOs and meat with hormones from the US?

MEPs want ambitious funding for cross-border projects to connect people

Data show EU Economy in a stubbornly subdued state

Silk Road Unlimited

EU to Google: How to dismantle European search engines in 13 steps

Burundi: Inclusive dialogue ‘only viable option’ for resolving country’s political crisis says, UN envoy

It’s time for the circular economy to go global – and you can help

The next 48 hours may change the European Union

CHINA: five letters that could mean…

Faith can overcome religious nationalism. Here’s how

Our Digital Future

‘Agile’, multilateral response vital to combat terrorism – UN chief Guterres

Teamgum @ TheNextWeb 2014

Dangerous Trumpism in the Middle East with an anti-European edge

Charlie’s tragedy energized deeper feelings amongst Europeans; back to basics?

Food system failures in our age of abundance

South Korea once recycled 2% of its food waste. Now it recycles 95%

US prosecutors now target Volkswagen’s top management, upsetting Germany

EU to increase spending and improve delivery of education in emergencies and protracted crises

UN lauds special chemistry of the periodic table, kicking off 150th anniversary celebrations

UN expert condemns new sentence for jailed Venezuelan judge as ‘another instance of reprisal’

The deforestation risks lurking in the banking sector

Brexit effect: Public opinion survey shows that EU is more appreciated than ever

Disaster Medicine in Medical Education: the investment you just can´t afford to ignore

Here’s how data can shine a light on financial crime

EU Youth Report casts stark light on life for young Europeans

Syria: UN-backed watchdog says chemical weapon ‘likely used’ in February attack

“Two Pack” approved: Is democracy chased away from Brussels?

China Unlimited: an exclusive interview with the former Ambassador of Hungary to China

Can a Bavarian Oktoberfest beer indulger bring down the Berlin government?

3 autonomous vehicle trends to follow in 2019

UN’s Grandi slams ‘toxic language of politics’ aimed at refugees, migrants

Why the Fourth Industrial Revolution needs more arts graduates

Cyprus banks under scrutiny

This forgotten element could be the key to our green energy future. Here’s why

The European Sting @ the European Business Summit 2014 – Where European Business and Politics shape the future

If people aren’t responding to climate warnings, we need to change the message

Mali facing ‘alarming’ rise in rights violations, warns UN expert

10 million Yemenis ‘one step away from famine’, UN food relief agency calls for ‘unhindered access’ to frontline regions

On eve of Gaza border protest anniversary, UN’s top humanitarian official for Palestine calls for calm

EU-U.S. Trade Talks: European Commission presents draft negotiating mandates

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s