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E
uropean
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Payments
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European payments the
same as national payments
2
The introduction of SEPA
(Single
Euro
Payments
Area) means that there is
no longer a difference
between national and
international payments in
euro. In order to harmonise
European payment transactions
European banks have drawn
up agreements and standards that
facilitate a larger European payment
market. The introduction of European credit
transfers will now be followed by European direct
debits and the uniform use of payment cards
throughout Europe. Money can now be transferred
quickly and cheaply (often) using virtual payment
systems.
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Transferring money abroad
European credit transfer
The European credit transfer form was introduced in
2008. It can be used for credit transfers in euro to beneficiaries in Belgium and the other SEPA countries (27
member states plus Iceland, Liechtenstein, Norway
and Switzerland).
3
European Payments
The tariff for a European credit transfer is the same
as for a national transfer providing the amount does
not exceed € 50,000. Individual banks impose different tariffs. Transfers in other currencies are subject to
exchange charges.
The amount must be credited in full to the beneficiary’s account within maximum 3 working days (from
2012 just 1 day).
The beneficiary’s IBAN and BIC numbers must be
entered on the European credit transfer form.
The IBAN (International Bank Account Number) has
maximum 34 digits. The Belgian IBAN number has
16 digits, starts with BE and is followed by 2 check
digits and the 12 digits of your current bank account
number.
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The BIC (Bank Identifier Code) identifies the bank
where the account is held. Each of the 6000 European
banks has an individual code. The BIC consists of 8 or
11 digits, for example BANKBEBB, and is sometimes
also referred to as the S.W.I.F.T. address.
European direct debit
4
Since 1 November 2009 it has been possible to pay
foreign beneficiaries by direct debit. This scheme
makes life easier for people with a second home or
children studying abroad.
Suppliers provide a mandate form for (a) single, or
repeated, payment(s). By signing this form you
authorise the supplier to debit your account once, or
repeatedly.
As a result of SEPA, the single payment area legislation, you now have a period of 8 weeks in which to submit a request for repayment if the amount deducted is
unreasonable, subject to your previous expenditure.
Cash payments (Western Union,
MoneyGram …)
When you want to transfer money quickly
to someone who does not have access
to a bank account, for instance to your
daughter who is on holiday, you can
resort to services such as Western
Union or MoneyGram. To do so you
need to visit one of their branches to
transfer the money. You will be given a reference number, which the beneficiary will have to
submit to collect the money. The actual transfer
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only takes a couple of minutes but you will be
charged a hefty commission depending on the
amount transferred.
Never use these services to purchase
something from an unknown source. The
identity checks for these systems are not
foolproof and they are often used by fraudsters.
International money order
Virtual banking services (PayPal, Moneybookers…)
5
European Payments
You don’t have to hold a bank account with
the Post Office to transfer money via a
post office. An international money order, which can be used to collect
the money from a local post office, is sent to the beneficiary’s
home address.
The post office charges € 15, in addition
to possible exchange charges, for an international money order. An international money order
takes the same time to reach the beneficiary as a letter.
Providing the beneficiary has access to the Internet,
it is possible to transfer money 24/7 from home to a
virtual account linked to an e-mail address. Opening
an account is quick and free of charge. Transfers are
free with PayPal and inexpensive with Moneybookers (€ 0.5). Moneybookers charges for deposits into
an account (€ 0.5). PayPal charges € 1 for collections
not exceeding € 100. Moneybookers charges vary between € 1.80 and € 3.50. To transfer money from a
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virtual account to an ordinary bank account you will be charged between € 1
and € 2, and it may take some time
to complete.
The initial transfer may take up to
15 days. After that, the security procedures are more straightforward and it
will not take more than 5 days.
Speed
Accessibility
Use of
account
Reliability
Depending
on the bank 2
+
+
x
++
Western Union
€ 44.50
+
+
+
Money Gram
€ 41.50
+
+
+
Money order
€ 15
-
+
++
PayPal3,4
Depending on
the account,
can be free of charge
-
++
x
++
Moneybookers4
Transfer: 1% (max. € 0.5)
Collection:
€ 1.80 to € 3.505
-
++
x
++
(December 2009 tariffs)
Bank transfer
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Cost for
€ 1,0001
6
For example: you are
sending € 1,000 to
a friend in another
European country
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These costs do not include exchange charges. They relate to the
transfer of 1,000 euro to another euro account.
2
Banks are not allowed to charge extra costs for European
payments in euro (i.e. they should cost no more than national
payments).
3
No postage charges. The beneficiary has to pay charges, which
depend on the nature of the account and the amount collected.
4
Exchange charges apply for transfers from a virtual account to a
bank account in a different currency.
5
Depending on the method used to collect the money from the
electronic account at Moneybookers: € 1.80 via bank transfer or
credit card, € 3.50 per cheque.
1
Payments abroad
Credit and bank cards
7
European Payments
SEPA has made it possible to use any
card at any terminal in all SEPA
countries. The card must be a
chip and PIN card.
In Belgium exclusively Belgian systems such as Bancontact and MisterCash were replaced by Maestro and
V-Pay. Over time Bancontact and MisterCash will disappear. Payfair was introduced to the Belgian market as a new European card at the end of 2009.
European legislation stipulates that the
costs associated with the use of these
cards abroad must not exceed the charges
imposed for the use of the card if you pay or
collect money in euro in your own country.
Most banks impose charges for cash collections from a terminal (ATM). These
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charges are higher for credit cards than
for bank cards (=debit cards). The tariffs
can be found on the banks’ websites. Payments in euro are usually free with credit
and bank cards. Sometimes, however,
charges are imposed with the latter for the
activation of the payment function abroad.
T
ravellers cheques
8
Until a few years ago people used travellers cheques when visiting far flung destinations. Most Belgian banks have now
removed travellers cheques from their
product range as a result of the introduction of the euro, the elimination
of the euro cheque and the ascent of payment cards. They are
still available from American Express
or Travelex. You buy travellers cheques
for a specific amount in dollars, yen, pounds
sterling or euro and convert them into cash at your
destination. If they are lost or stolen travellers cheques
will be replaced. Travelex charges 2.75 % of the counter
value + € 2.25 when you purchase cheques and 2.75 %
of the counter value + € 2.25 when you cash them. With
American Express the charges are dependent upon the
point of sale where you buy the cheques.
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Remote payments (internet, telephone …)
Not only credit cards and credit transfers, but also virtual
credit cards, e-wallets, micro payments and prepayment
cards are increasingly being used to make payments on
the Internet. The ECC has published a useful brochure,
which reviews the pros and cons of the different payment methods.
Credit cards are given a positive evaluation. Similar
to electronic transfers you are protected by law from
fraudulent practices. The bank or card issuer must repay any amounts that have been debited unlawfully.
9
European Payments
Credit cards such as Visa, Mastercard and American
Express also provide extra protection. If you paid by
credit card and the product or service was not delivered, you are entitled to reclaim the amount, providing
you have first tried to persuade the vendor to honour
the transaction and still supply the goods or services.
If this is not successful, you are entitled to submit a
complaint and reclaim the money.
Payment made unlawfully or incorrectly?
Submit a complaint to the organisation/body
which deducted the payment as soon as possible.
Are you aware that you have maximum 13 months
in which to lodge an appeal?
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Other publications from the European Consumer Centre that can be
ordered free of charge or downloaded from the website,
www.eccbelgie.be
The
law
on
guarantees
Reselling timeshare
The ECC was set
up to help and
inform European
consumers.
The law on
guarantees
Hiring a car in
Europe
Sea rch in g f o r a
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10
Healthcare in
Europe
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Hiring a car in Europe
Alternative
dispute
resolution in
Belgium
Your rights as a
traveller departing
from an EU
Member State
Paying by internet
A quick, easy and
cheap solution for your
consumer problems
Alternative dispute
resolution in Belgium
1
Buying
Buying a car in
the EU
on the
internet
Buying on the internet
PAIEMENTS EUROPE_en.indd 10
Guide to solving
your consumer
issue
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The European Consumer Centres Network
was established by the European Commission
to provide information to consumers and assist
them free of charge with cross-border disputes
within the European Union.
ECC Belgium
Rue de Hollande 13
1060 Brussels
tel. : 02 542 33 46
fax : 02 542 32 43
[email protected]
www.eccbelgium.be
The European Commission does not accept
responsibility for the content of this publication.
Responsible publisher: Edith Appelmans
December 2009
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European Payments
Free legal advice: normal working days from
9.00 a.m. to 12.30 p.m. and from 1.30 p.m.
to 5.00 p.m. On Fridays from 10.00 a.m.
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This brochure is supplied by the
European Consumer Centre
www.eccbelgium.be
With the support of the European Commission,
the Belgian Federal Public Service Economy, SMEs,
Self-Employed and Energy.
46676
The ECC project has been entrusted to
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