EUROPA | ENGLISH

EU Regulation on cross-border payments

Trimite stirea unui prieten
Nume *
E-mail *
E-mail prieten *
Mesaj
Cod validare * Turing Number
Tastati codul din imagine (doar cifre)
195.154.184.126

Autor: Bancherul.ro
2019-02-23 08:51

Frequently asked questions: Intra-EU cross-border payments

Brussels, 14 February 2019

What did the Commission propose in 2018 and why?

EU cross-border payments in euro are very cheap or even free in euro area Member States (priced as domestic payments) but still expensive in non-euro area Member States.

The two amendments proposed by the Commission in March 2018 to the Regulation on cross-border payments will reduce the cost of intra-EU payments within the entire EU and unify the single retail payments market.

This will benefit in particular citizens and businesses from the non-euro area Member States by letting them have access to cheaper intra-EU euro payments. Transactions made in EU currencies other than the euro are not impacted by the revised Regulation; however, Member States are free to extend the rules to other currencies.

The revised Regulation also makes currency conversion charges fully transparent, setting standardised transparency requirements for card-based transactions and credit transfers and allowing consumers to compare the costs of different conversion options and make a fair choice.

What is the situation under the current rules and how will it change as of 15 December 2019?

Today, a transaction in euro across the euro area, i.e. from France to Portugal, costs exactly the same as an equivalent transaction within one Member State. Depending on the bank, it may be free of charge or cost only a few cents. This allows customers in the euro area to make transactions across borders at the same cost as within the same country.

In contrast, for example, a transaction in euro from a non-euro area Member State (e.g. Bulgaria) to a euro-area Member State (e.g. Finland) is currently priced between €15 and €24, even if the amount transferred from Bulgaria is only €10. This means that consumers and businesses in non-euro area Member States face higher fees for euro payments as soon as they operate across borders. This is a major barrier to intra-EU exchanges and is detrimental to the Single Market. Furthermore, this raises issues of equal treatment and the level-playing field for businesses across the EU. Non-euro area consumers and businesses should not have to pay more than their counterparts in euro area Member States when engaging in similar types of cross-border exchanges within the Single Market.

With the new Cross-border Payments Regulation, as of 15 December 2019, the price of an intra-EU transaction in euro from Bulgaria to Finland is expected to decrease, from between €15 and €24 to about €1.

What is dynamic currency conversion and what has been done to protect consumers from opaque currency conversion offers?

When consumers make card payments while travelling abroad or when paying online, they can often choose whether to pay in local currency or their home currency. When choosing the local currency, their bank will convert the amount of the transaction and consumers only know a few days later, when looking at their bank statement, how much the transaction really cost.

If consumers decide to pay in their home currency, a payment service provider converts the amount of the transaction on the spot in exchange for a fee. This process is called dynamic currency conversion (DCC). While DCC allows consumers to know immediately how much they have to pay, the use of this service is often more expensive than their bank´s.

At present, consumers are not able to compare fees they will be charged for using either the local currency or their home currency. The revised Regulation will bring more transparency on currency conversion charges levied on card-based payments and credit transfers, so that consumers can make informed choices for instance when they are confronted with alternative currency conversion options either in shops or at ATMs.

The Regulation ensures currency conversion charges for card-based payments are comparable. How?

Under the new Cross-border Payments Regulation, whenever Dynamic Currency Conversion is offered at either a shop, in an online marketplace or when withdrawing cash at an ATM, the applicable currency conversion charges will have to be disclosed to the consumer before the transaction takes place. These charges shall be expressed in a harmonised way.

All payment service providers offering either debit or credit cards will have to disclose the cost of their currency conversion service in the very same way. This information will have to be provided in the Terms & Conditions of a card, as well as channelled to the consumer through an electronic message (e.g. SMS, email, bank app notification) immediately after a bank received a payment order denominated in another EU currency. This electronic message should be sent once a month (in case of recurrent payments in said other EU currency).

What type of information will consumer see when sending money abroad through their bank?

Under the new Cross-border Payments Regulation, when consumers initiate credit transfers involving a currency conversion, payment service providers will have to disclose an estimate of the applicable currency conversion charges, as well the estimated total amount of the credit transfer in the currency of the consumer´s account, including any transaction fee and any currency conversion charges. Payment service providers will finally disclose the estimated amount to be transferred in the payee´s national currency unless the consumer decides to send money in his own currency, in which case the consumer´s bank will not perform a currency conversion.

Will the transparency provisions included in the Regulation apply also to payments involving non-EU currencies?

No, the provisions on transparency of currency conversion charges only apply to cross-border payments involving a currency conversion between two EU currencies.

Source: European Commision statement

Comentarii



Adauga un comentariu
Nume *:

E-mail *:
(nu se afiseaza pe site)
Subiect:
*
Comentariu:

Turing Number

Tastati codul din imagine (doar cifre)  



Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH



Banca Transilvania (BT) Financial Results as at June 30, 2021: lending and operations on a growing path

The first half of the year confirms the anticipated recovery of the economy and Banca Transilvania’s achievements during the first six months of the year endorses its role as supporter of the Romanian economy and people, said bank in a statemant, that added: The bank has detalii

BCR Social Finance and EIF: RON 75 mill available for financing SMEs, NGOs and individuals looking to invest in education, upskilling and reskilling the Romanian workforce

BCR Social Finance announces the agreement with European Investment Fund, for a RON 75 mill financing available for SMEs, NGOs and individuals involved in education and skills development, according to a bank statement. This partnership sets the foundation for BCR Social Finance to detalii

OTP Bank, in the program for implementing the state aid scheme based on GEO no. 224/2020

OTP Bank Romania is one of the partner financial institutions selected within the program for implementing the hospitality aid scheme, announced by the Ministry of Economy, Entrepreneurship and Tourism (MEET), according to a statement. Through the new partnership with MEET, OTP Bank detalii

Mustafa Tiftikcioğlu is the new CEO of Garanti BBVA Romania

The National Bank of Romania has approved the appointment of Mustafa Tiftikcioğlu as CEO of Garanti BBVA Romania. Mustafa Tiftikcioğlu replaces Ufuk Tandoğan, who is completing his mandate within the bank, after 9 years at the helm of Garanti BBVA Romania, according to a detalii

 



 

Ultimele Comentarii

  • BT pay

    Exact aceiasi problema ca dl Ionescu si dna Jeni am si eu. Daca aveti o solutie va rog? Multumesc ... detalii

  • YOU BRD

    Aplicatia MY BRD este inca functionala, o puteti reinstala din Google Play, App Store sau Windows ... detalii

  • YOU BRD

    Foarte proasta aplicatia.O vreau pe cea veche.Cum pot sa o reinstalez pe cea ... detalii

  • Buna ziua!

    Am instalat bt pay, am introdus numele și nr de telefon, îmi vine mesajul de confirmare prin SMS ... detalii

  • Rambursare anticipata

    Buna seara, Cum pot convinge funcționarul de la banca (in cazul meu BRD), ca rata pe care vreau ... detalii