Living in the Euro Zone, should make international transactions cheaper?

**rolfw** · 05-09-2009

Does it buggery. Had to send some money to a German seller in Euros, he didn't use paypal and I didn't have that facility to send Euros other than that, so asked my sister in France to send a cheque for me in the amount of €75.

Well got an irate Email last night from the recipient, saying that he'd been charged €12.50 for the transaction and it had taken a couple of weeks.

So please can someone tell me what the advantage is of living in the Euro zone to small businesses, as I can't see any?

It's now going to cost me another 17% for the item, may as well have sent a sterling cheque for the whole amount and swallowed the charge.

***Turok*** · 05-09-2009

Hello Rolf!
good eveing!
the european law about this "says" the following!
hope i can explaind that,that everyone understand what i mean,the law is a little bit complicated but i try it!

ever european money transaction,since Juli 1th 2007,the eu try to harmonize the system,with the bic and iban number,and say,ever transaction,is forbidden to charge more,then a money transfer before,inside each european country c,has coast,before the first 1 of july,where the change the system!

here,in austria,the charge,from your own acount,when you go to the bank in the past around 10 austrian schillings,thats aproximently 80 cent,when you do it online then it is only 18 cent,the same price then before,many countrys,like in italy also the charge 5€ for each transfer,also before the change of first july 2007!

i dont know why eu,not make fix rates for all eu member states,but that country that pay more,in the past,for sending money inside there own country,the always pay more,thats the problem!

this reason why in some countrys,the sending is so expensice,is also the reason why in uk,everyone use paypal,here in german speaking area,in the auctions is frowned upon,because it is to expensive!

i have also a german online bankacount,and here is on most banks,sending money eu wide complitly for free!
there,are also one bank,in berlin,where you got also free visa,and you pay nothing for your acount also!

here everyone,say why i should use paypal,and give them money,when bank transfer is free,in other countrys it is via versa !

a big problem currencly is,how long the banks,keep the money,back when you send something,i recogneized with a austrian and a german paypal acount,that the money to austria needs 5 days from paypal or 6,and in germany i got the money within 24h,the eu want also forbid this practice!

***Turok*** · 05-09-2009

Hi !
again,in luxembourg,there are the controll supervisior of all european banks,report them,about the high charge!

***Tivù*** · 05-09-2009

I've been stung several times in the past transferring holiday deposits for privately arranged accommodation in mainland Europe. A deposit of say £80 (converted to €) attracted £12.50 in fees!

However, there is a cheap variation now coming into force which applies to a few Eurozone Countries - My Bank told me about it last year for our Spanish hol in Asturias.

I'm trying to find a reference/link .......................

................ Failed: May delve into my records tomorrow. SWMBO time beckons.

**rolfw** · 05-09-2009

Yes, but what I can't work out is why they would charge a €12.50 administration charge on a cheque from a fellow member bank which is in the Euro currency.

We are constantly being bombarded with Euro zone propaganda in the UK, a lot of which is based on conversion rates and ease of money transfer, when it would appear that this really isn't the case.

**rolfw** · 05-09-2009

Sorry Tivú, was replying to Turok's post.

The vendor is annoyed, but has stated that he doesn't have time to ask his bank why they are leveling the charge, but I'm equally annoyed, as it will end up being me out of pocket when I send him the money, so would expect him to at least ask them why.

***Turok*** · 05-09-2009

then the best thing,you open a german online acount!

i use this bank now!

the german kredit bank in berlin!
_www.dkb.de
every one in europe can sign up acount for free!
best features of all banks!

1.no acount coasts!
2.no transfer rates inside eu
3.free visa card!
when you save money you get 3,5% on the creditcard!
and the best think,the only bank that i know,where you can get money on atm for free worldwide! exluded the charge of some foreign banks,in there own country!
in thailand on my other austrian card maestro i payed 5.33€ each atm transfer,on germany visa i pay nothing!
only 150 thai bath for the thaibank,since this songkhran 13 of april,before it was free!

then you have a standart credit of 1000€ or more,depents,on your income,you pay online one time one month on the 22.th!

i ask one time on a bankers bulletin board,how this bank earn the money!
i only got 2 answers,when you rent money from the bank the charge you 12.5%..
and a real funny idea,that the dont say on homepage,when you get problems,and has to corespondence,with the bank,by a letter,the charge you for every komma,in the letter 1 €:

when you have many auctions in germany,you can save a lot of money,and get more 2,5% on visa card when you save money,the banks here in austria only have 0.5% at the moment,i dont know how is in uk?

**rolfw** · 05-09-2009

Normally vendors I deal with in Germany have Paypal, not really worth me opening a German bank account for a an occasional transaction.

**Topper** · 05-09-2009

It is only more evidence to fuel the debate that has been raging for years. Keep us out of the Euro monetry system I say it is a contrived currency that will never be the equal of or able to compete with the dollar.

***Turok*** · 05-09-2009

via versa,the "problem" on paypal,and also a bank acount transfer is,that paypal charge me,when i sell something in uk around 2.5% exchange rates from uk pounds back to euro+the paypal fees!
the exchange rates of paypal,for the same amount,are much lower,then the daily exchange rates that you see on _oanda.com

**T_G** · 06-09-2009

Well, I have actually good experiences with the Euro, but I don't need to change from Euro to pounds.
All I know is that ever since the Euro became the currency my business has had much better dealings with customers and suppliers al over Europe. The benefit is clear for our export customers and for us buying. I understand there is a patriotic thig about having your own currency, but the reality is that even my UK dealers have admitted to me that they would prefer to have the Euro.

I am 100% not an expert on monetary issues, it is just my observation dealing with export/import on a day to day basis.

I would not go back to having separate currencies for sure.

**rolfw** · 06-09-2009

Doesn't answer my question though, why on earth should a German bank charge a €12.50 fee for passing a €62.50 cheque from a fellow Euro zone bank, what happens if one of your customers in France sends you a cheque, does it also attract a large fee?

This isn't an anti Euro thread, I would have no problem using the Euro in the UK if the conditions were right, but I do have a problem with this type of thing, as we are being sold the Euro zone on the basis that if we adopt it, this sort of thing won't happen any more, oh and also our summers will be warmer, there will be no more street crime, the streets will be paved with gold and 2.4m satellite dishes will not require planning consent.

**Channel Hopper** · 06-09-2009

In most transactions I have carried out with foreign sellers, I have bought some euros in the Post Office and paid about 3 pounds for a recorded/insured delivery.

Not lost one as yet.

***Turok*** · 06-09-2009

Ebay

make a lot of advertising here,buy in uk,because of the low pound,save a lot of money,video games,and sportwear.and also cameras.are around 20% and more cheaper,!
and many other thinks,like apple ibooks for expample,but not everything!

forgot one question,what would happen,when you open a euro acount in uk?
maybe then the have diffrent charges?

i could imagine that the 12.50 pounds also include the exchange rates.and the profit for the bank,changing the money,how high was the amount of the Ebay

item you purchase?

**rolfw** · 06-09-2009

That isn't the point, yes I could've done that, but assumed that a cheque in euros from one euro zone bank to another euro zone bank would not attract extra charges.

**rolfw** · 06-09-2009

Turok, it wasn't an Ebay

item, but it was €62.50 and the cheque was in Euros from a French bank as said earlier, so should be no conversion charges. Opening a Euro account in the UK would not really help as I don't do many transaction outside the UK and when I do I normally use my Nationwide credit card which carries no conversion charge, or Paypal.

I'm not looking for aternative methods of payment, as I already have them for most circumstances.

***Turok*** · 06-09-2009

Hello!
okay, it was a cheque ,not a normal bank transfer,i misunderstand this!
cheques here ,also coasts around 10€ here,i never use them!
in auction houese there are very dangerous to accept,espasaly on expensice cars,i read a lot of reports,that the seller go to the buyer,give them a cheque ,bank confirm,yes thats a real one,buyer take the car a way,and on the time,where the seller,wants the money from the cheques,the bank find out,that there is a stolen credit card behind,so i never accept cheques!

this was now,not exactly the question rolf asking,but i want also inform about this!

**T_G** · 06-09-2009

I will ask at wor tomorow about his cheque thing, I think I can remember something about it. we don't use cheques anymore because of those charges I think.

**rolfw** · 06-09-2009

Ok thanks.

Yes, I seldom use them myself, usually move money by internet banking.

***JTA*** · 07-09-2009

banks are trying to dump cheque transfers in favour of electronic banking systems. Cheques are no longer guaranteed and have to be processed manually, which takes time and ressources, hence the high processing fee.
I regulary make electronic bank transfers to other accounts within the EU zone, which costs me nothing at all. I also use my credit card to make payments abroad, this also costs me nothing. So next time, whatever you do, stay away from payments by cheque !

**rolfw** · 07-09-2009

Oh don't worry I will do, if my sister had been at the office I would've got her to send by electronic transfer, but she wasn't.

I do consider though that 20% is a ridiculous charge, even if it is done manually.

**Channel Hopper** · 07-09-2009

But going for the credit card option does stuff you in many other ways.

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