Is there a fee for ACH transfers
Cross-border transfer fees
The euro enables fee reductions
Since July 1, 2003, cross-border bank transfers denominated in euros within the Union have been treated like corresponding payment transactions within the Member States. For the bank customer, this means great savings. The entry into force of this measure is due to a regulation on cross-border payments in euros, according to which the same fees are charged for domestic payment transactions and for corresponding cross-border payments. This provision has been in force since July 2002 for payments with payment cards and cash withdrawals from ATMs; Since July 1, 2003, it has also applied to bank transfers. In recent years, a transfer of 100 EUR has been charged on average with a fee of 24 EUR.
According to the regulation, cross-border bank transfers in euros, for which the recipient's IBAN and BIC are indicated, are treated as domestic transfers. As a result, both the originator of the international transfer and the recipient have to pay the same fees as for a domestic transfer. The regulations of the country in which the account is located are decisive. In the case of a transfer from the Netherlands to Germany, the remitter pays the Dutch fees and the recipient pays the German fees (if fees are charged for receiving domestic transactions).
Conditions a cross-border bank transfer must meet in order to be treated like a domestic transfer
- It must be denominated in euros, must not exceed a value of EUR 12,500 and must be addressed to a recipient in a member state of the Union;
- The IBAN and BIC of the recipient must be indicated on the transfer form of the client (these forms do not correspond to the forms for domestic transfers);
- the client pays the fee requested by him.
If one of the three conditions is not met, the regulation does not apply in which case much higher fees may be charged.
IBAN and BIC
The regulation aims, among other things, to support banks in automating their payment systems. The prerequisite for automation is the use of the international bank account number (IBAN) and the international bank code (BIC). If this information is missing, the transfer cannot be automated.
The IBAN (International Bank Account Number) is the beneficiary's international bank account number. Since the current bank account numbering systems are exclusively national; they do not tell you in which country the account is located. The standardized IBAN provides a remedy: Each account number is preceded by a group of four characters: two letters to identify the country and two numbers that enable the IBAN to be checked in order to avoid transcription errors. The IBAN consists of a maximum of 34 characters, the number being fixed for each country (e.g. 16 characters in Belgium and 27 characters in France.
United Kingdom GB29NWBK60161331926819
The BIC (Bank Identifier Code) designates the payee's bank. It supplements the IBAN information and usually comprises eleven, in individual cases only eight characters. The BIC is often known as a code or SWIFT address.
The payee must provide the transfer orderer with this information. For this purpose, the ordinance stipulates that since July 1st, bank statements must contain the bank customer's IBAN and the BIC of their bank. This information must also be printed on invoices that are paid using a cross-border transfer.
However, high additional fees have to be paid for cross-border payments for which the IBAN and BIC of the beneficiary are not specified. The regulation expressly provides for the possibility of charging additional fees.
Sanctions for violations of this regulation are the responsibility of the individual member states. According to a principle of Community law, each Member State must ensure that breaches of Community law are punished in a similar way to breaches of national law.
Federal Association of Consumer Organizations
Federal Association of Consumers
Tel .: 030 25 800 0
Complaint offices in cross-border disputes
YOU MIGHT ALSO BE INTERESTED IN:
- What should I do in a fight
- Are machines able to think?
- How are inner feet fixed with pigeon toes?
- How can I rebuild my trust
- What is considered a working day
- Narendra Modi is an anime character
- Do you have to prove a flat-rate damage
- Catherine the great was a good mother
- What's your favorite bird of prey
- How important is ketchup in your life
- What do you mean by transverse dimension
- What is a marine instrument panel
- How is the supreme god
- How long has Neymar played for FCB
- Autism is a modern disease
- Why do people offer cash for houses
- Why is potassium lighter than sodium
- What is your favorite Christian metal band
- How can I get someone to hit me?
- Which came first on Mac OS or Linux
- What does good relationship mean
- Will electric vehicles have a bright future?
- There is truth from our consciousness
- How does an Arduino circuit work