EU acts to make cash transfers easier
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.CHAMPIONING consumer rights, the European Commission yesterday proposed legislation to make it easier and cheaper to transfer money across the frontiers of the European Union.
Banks across the EU, including in Britain, have lobbied against legislation.
The British Bankers Association said this week that the legislation would force many banks to drop cross-border cash transmission for small sums completely because charges would never cover costs.
The proliferation of cash machines and credit cards has made it easy to get cash from a bank on demand virtually anywhere in the EU, but sending money from bank to bank can take days and cost between pounds 5 and pounds 30.
Another complaint is that payment can be delayed by correspondent banks abroad and that receiving banks often levy their own charges despite the sending bank saying it would handle all costs.
The Commission argues that such measures run counter to the spirit of the single market and that voluntary improvement by banks has failed. 'We have to show consumers that the single market is a reality, that it is effective and strong,' said Vanni d'Archirafi, the Commissioner responsible for the internal market, yesterday.
The measures will be presented to industry ministers at the end of the month. The Commission acknowledges that there will be more lobbying from the banks, which are being asked to begin implementing the measures voluntarily.
The proposed law will give banks six days to make a transfer, unless they have struck a different arrangement with the customer. Double charging will be illegal. The bank initiating the transaction will be liable for ensuring that the money reaches its destination.
The Commission has estimated that 200 million separate cross-border transactions of less than pounds 1,500 are made every year. As a sweetener to the industry, the Commission said it would interpret EU competition rules generously to allow banks to group together to create systems offering a transfer service with the maximum price fixed.
In response to industry complaints that most of their costs are due to the high notification charges made by the central banks, the Commission is also negotiating for payments of less than ecu2,000 not to appear on statistical statements.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments