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

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

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

These countries are best at attracting and nurturing talented workers

Falsified medicines: new rules to enhance patients’ safety

Climate change hits the poor hardest. Mozambique’s cyclones prove it

MWC 2016 LIVE: 5G to embrace unlicensed bands and Wi-Fi

One-sixth of the world’s economy has now pledged to cut CO2 to zero by 2050

‘A trusted voice’ for social justice: Guterres celebrates 100 years of the International Labour Organization

5 steps that could end the plastic pollution crisis – and save our ocean

Satellites and data are going to help us phase out fossil fuels. Here’s how

The new ethical dilemmas in medicine of the 21st century

Digital development: technology-enabled, but human-centric

GSMA announces new keynote speakers for 2018 Mobile World Congress

A third of young people polled by UN, report being a victim of online bullying

Youth2030: UN chief launches bold new strategy for young people ‘to lead’

Medical students, climate change and health: an unorthodox combination

3 megatrends for the factories of the future

Canada leading the way on women’s inclusion and empowerment, says OECD

Be a part of the World Forum on Future Trends in Defence and Security

This is how rice is hurting the planet

Libya: Heavy shelling and civilian deaths ‘blatant violation’ of international law – UN envoy

Does the West reserve the fate of Libya and Syria for others? How does this relate to the EU’s Neighborhood Policy?

EU-Turkey relations: EU considers imposing sanctions while Turkey keeps violating Cyprus’ sovereignty

Reform of road use charges to spur cleaner transport and ensure fairness

Tax revenues continue increasing as the tax mix shifts further towards corporate and consumption taxes

World Cancer Day: Early cervical cancer diagnosis could save lives of over 300,000 women

Brussels wins game and match in Ukraine no matter the electoral results

Marginalized groups hit hardest by inequality and stigma in cities

“Be aware where you put your I Agree signature on and something else”; now Facebook by default opts you in an unseen private data bazar

GSMA Mobile 360 – Latin America at Mexico City: Intelligently Connecting to a Better Future, in association with The European Sting

Celebrate love, strengthen partnerships to end AIDS epidemic by 2030 says UN agency

A quarter of Americans have no retirement savings

CLIMATE CHANGE FOCUS: The fruits of sustainability and decent work

UN experts urge India to align new anti-trafficking bill with human rights law

UN health agency spotlights stalled effort to close health divide across Europe, in new report

Tobacco-free Public Space in Africa’s Most Populous Country

EU joint response to disasters: deal reached with Council

How Japan can take the lead with an ageing workforce

These patients are sharing their data to improve healthcare standards

Banks must take bold action to fight climate change. This is how they can do it

Is it true that the G20 wants to arrest tax evasion of multinationals?

Yesterday’s “jokes” and sarcasm by Digital Single Market’s Vice President Ansip on EU member states’ right to protect their telco markets

North Macedonia President, credits dialogue and diplomacy for setting a decades-long ‘name dispute’

DR Congo Ebola outbreak now a Public Health Emergency, UN health agency declares

European Union: Retail sales show deep recession

MEPs cap prices of calls within EU and approve emergency alert system

Why the financial scandals multiply?

Bring killers of journalists to justice: UN agency seeks media partners for new campaign

Siemens-Alstom merger: Can Germany and France lobby to circumvent EC’s rejection, against EU consumers’ interests?

Trump: Hostile to Europe, voids Tillerson’s “ironclad” ally pledge

This billion-dollar campaign wants to protect 30% of the planet by 2030

YOUTH WILL BE A KEY FOCUS IN THE NEXT EUROPEAN PARLIAMENT

Work Together to Build a New Type of International Relations and a Community with a Shared Future for Humanity

IMF’s Lagarde: Estimating Cyber Risk for the Financial Sector

Is the West gradually losing Africa?

‘Cataclysmic events’ in Hiroshima, Nagasaki, began ‘global push’ against nuclear weapons says Guterres, honouring victims

More solidarity and interaction between generations needed to challenge age stereotypes and ingrained ageism

A new generation of women leaders is making waves in the Arab world

INTERVIEW: Advancing human rights, a ‘never ending process’ says new UN rights chief

Why a cash-free future might not be as close as you think

‘Health is a right, not a privilege’ says WHO chief on World Health Day

Interview with ourselves: the mental health of health professionals

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