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A first step on ending abusive fees on cross-border payments

On the 5th of November, the European Parliament’s Economic and Monetary Affairs Committee adopted a draft regulation limiting charges for cross-border payments within the EU and for currency conversion services by a broad cross-party majority.

COFACE-Families Europe has denounced so called “dynamic currency conversion” services for a while, in cooperation with several other European consumer protection organisations. This service, which enabled a consumer to pay in his native currency abroad, would cost more than paying in the local currency, with very opaque cost structures and exchange rates which were above the normal rates applied by banks.

In addition to this issue, the Committee also examined the costs of transferring money via wire transfer between two countries outside of the euro zone or between two countries, one being in the euro zone, one outside. Indeed, the costs of transferring money was found to be excessive in these cases and the Committee took the first steps to address this issue.

COFACE-Families Europe welcomes these developments, and hope that these two issues will be solved promptly, in order to contribute to bring about a true single market for financial services and especially, allow for all families to benefit from the ability to travel and pay for goods/services or transfer money from one country to the other without being exposed to prohibitively high fees.

For more information, please visit the website of the European Parliament here: http://www.europarl.europa.eu/news/en/press-room/20181105IPR18254/equal-charges-for-domestic-and-cross-border-non-euro-payments

Or contact Martin Schmalzried: mschmalzried@coface-eu.org