Changes affecting euro payment charges
What is happening?
Since the beginning of 2021, some EU banks have increased their charges for making and receiving Single Euro Payment Area (SEPA) payments to and from UK banks.
As we’ve not increased our charges, you won’t be directly impacted by this. However, if you make or receive a SEPA payment, you should be aware that:
- If you send a SEPA payment to a beneficiary who holds an account with a bank in the EU which has increased its charges, then the beneficiary may receive less than intended.
- If you’re sent a SEPA payment from an account held with a bank in the EU which has increased its charges, then the payee may have to pay higher charges to their bank for making the payment. This will not affect the amount that you receive as the fee is paid separately.
What you should do?
If you make or receive SEPA payments, we recommend you liaise with your counterparty to understand if their bank has increased its charges for SEPA payments. The beneficiary may be able to negotiate a lower charge with their bank for any incoming SEPA payments. However, if this isn’t possible, you may need to consider sending an increased amount.
Why is this happening?
Up until the end of the Brexit transition period, all EU banks had to adhere to a regulation which required fees for cross border euro payments to be the same as domestic euro payments within the member state.
As the UK has left the EU and the transition period has ended, EU banks can now charge more for euro payments made to and from the UK.
Are all EU banks increasing their changes?
No, the decision to increase charges is optional.