Comments on: Banking Innovation at VocaLink http://paymentspodcast.com/2007/11/29/banking-innovation-at-vocalink/ Unique insights into the Global Payments Industry, from a wide range of thought leaders Sun, 01 Aug 2010 08:08:15 +0000 http://wordpress.org/?v=2.1.2 By: Mike Woodiwiss http://paymentspodcast.com/2007/11/29/banking-innovation-at-vocalink/#comment-29 Mike Woodiwiss Fri, 28 Dec 2007 17:22:44 +0000 http://paymentspodcast.com/2007/11/29/banking-innovation-at-vocalink/#comment-29 There seems to be some confusion between the definitions of the EU and the Eurozone as far as implementation of SEPA is concerned. I was hoping that the introduction of SEPA would result in lower costs for transferring Euros between, in my case, Germany, and Euro accounts in the UK and that UK Banks would be 'part of this arrnagement'. It seems odd - if not 'financial exploitation' - that I can transfer Euros from Germany to a UK Euro account for a cost of just around 10 Euro cents but to transfer the other way the charges are significantly higher around £20-£25! My German Bank have also just informed me that as from 1 January 2008 with the introduction of SEPA - (which nevertheless has been deferred to 28 January 2008), they will no longer routinely accept cheques (specifically UK cheques). To me, this means that instead of the previous Euro 12-Euro 15 cost of a cheque transaction I will in future only be able receive funds from the UK by transfer. This would be fine if, under the IBAN/BIC/SEPA principles the charges were, as specified, at domestic levels of just a few cents - if anything at all. However it appears that the UK Banks will persist in their extortionate overcharging and I will have no alternative than to accept! There seems to be some confusion between the definitions of the EU and the Eurozone as far as implementation of SEPA is concerned.

I was hoping that the introduction of SEPA would result in lower costs for transferring Euros between, in my case, Germany, and Euro accounts in the UK and that UK Banks would be ‘part of this arrnagement’.

It seems odd - if not ‘financial exploitation’ - that I can transfer Euros from Germany to a UK Euro account for a cost of just around 10 Euro cents but to transfer the other way the charges are significantly higher around £20-£25!

My German Bank have also just informed me that as from 1 January 2008 with the introduction of SEPA - (which nevertheless has been deferred to 28 January 2008), they will no longer routinely accept cheques (specifically UK cheques). To me, this means that instead of the previous Euro 12-Euro 15 cost of a cheque transaction I will in future only be able receive funds from the UK by transfer. This would be fine if, under the IBAN/BIC/SEPA principles the charges were, as specified, at domestic levels of just a few cents - if anything at all. However it appears that the UK Banks will persist in their extortionate overcharging and I will have no alternative than to accept!

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