Guide to International Banking Services

Guide to International Banking Services

Guide to International Banking Services
Welcome to our Guide to International Banking Services which gives you details of the various international banking payment
options available to our customers.
We hope this summary guide will help you choose the option most suitable for you.
A foreign draft is a cheque issued by Bank of Ireland in a foreign
currency drawn on a bank abroad. It is an inexpensive way of sending
low value bank guaranteed payments abroad. If you find that a
currency draft you have purchased is no longer required or if it is lost
or stolen in transit, Bank of Ireland should be contacted immediately.
Any refund will be at the prevailing currency buying rate which may
be different to the rate used when the draft was purchased. Delays
can be expected in obtaining a replacement.
Telegrapic Transfers
Outgoing Payments Abroad
Usage
Urgent funds transfers
User
Business / Personal
Payment by
Interbank electronic transfer
This is the fastest and more secure method of making international
payments. Funds will normally be deposited into the bank abroad two
business days following receipt of the instruction at Bank of Ireland
International Trade Services (when banks are open in this country and in
the country where payment is to be made).
Company or Personal Cheques sent Abroad
However, final payment may be delayed if there are complications in
the routing of payments or in overseas banking systems. Bank of
Ireland can give no general assurances on the achievement of value
dates or the date of application of funds by the bank in receipt to the
respective bank Accounts. Customers are urged to discuss their
needs in advance with staff.
Usage
Making payments abroad
User
Business / Personal
Payment by
Post/Courier
It is possible to send money abroad by issuing a cheque. However,
the overseas payee will incur delays and extra expense in collecting
the funds as the cheques must be returned to the bank on which
they are drawn before value can be given.
International payments transmitted electronically have less chance of
being delayed if the full name and address of the beneficiary’s bank
together with the beneficiary’s account number and full name are
provided. In the case of payments within Europe the correct
beneficiary IBAN (International Bank Account Number) is required;
if the payment is made to the US then the nine digit ABA routing
number (equivalent to a UK bank sort code) should also be provided.
Security of personal or company cheques cannot be guaranteed,
since the “account payee” crossing (and other crossings) may not be
recognised in other countries. You should clearly write the name of
the payee and put extra information about them on the cheque
e.g. Account Number/reference.
An outgoing payment in currency different to your Account will be
exchanged at the appropriate selling rate for the currency on that
day. Full details of the payment, including the exchange rate and
commission charged, will be quoted on the advice which is sent to
you on the day the payment is effected.
The payee may have to pay substantial charges in their country to
clear the cheques.
Bank Drafts and Cheques from Abroad
Incoming Payments from Abroad
Usage
Receiving payments from abroad
Usage
Urgent funds transfers
User
Business / Personal
User
Business / Personal
Payment by
Post/Courier
Payment by
Interbank electronic transfer
Usage
Trade related payments
Funds are transferred electronically from the overseas bank using the
SWIFT system or Telex. All inward payments are processed on the day
of receipt and actual payment can take place immediately or at a
specified date, normally not more than two business days after
receipt by our payments section.
This is a slower method of receiving funds from abroad but Bank of
Ireland can arrange to clear them for you subject to payment by
banks on which they are drawn. Receipt of funds by Bank Draft is
more secure than personal or company cheques. At our discretion,
foreign cheques will be ‘negotiated’ which means that we will credit
your Account with the amount or equivalent of the cheque, but we
will retain the right of recourse over the funds and debit your
Account if the cheque is subsequently unpaid. If conversion is
required it will be at the prevailing exchange rate which may be
different to the rate used when the cheque was originally presented.
An incoming payment in different currency to your Account will be
exchanged at the appropriate buying rate for the currency on that
day. Full details of the payment, including the exchange rate and
commission charged will be quoted on the advice which is sent to
you. Your responsibility for our charges and/or those of the sender’s
bank will depend on the arrangements made by the sender.
Incoming Payments - Postal
If you require or we, at our discretion, require a cheque to be cleared
before giving value, we will arrange to send it to the bank on which
it is drawn, on a collection basis. This means that proceeds, net of the
foreign bank’s charges, will only be credited to your Account when
they have been received by us and, for currency cheques,
the exchange rate (if required) will be the appropriate rate used on
the day funds are received at Bank of Ireland. Cheque collections can
take two to three weeks or longer but we always make every effort
to obtain payment by the fastest method.
Some countries still use the postal service to effect payments - speed
of such payments cannot be guaranteed.
Foreign Drafts sent Abroad
Usage
Making payments abroad
User
Business / Personal
Payment by
Post/Courier/In person
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Documentary Collections – Export/Import
Foreign Currency Bonds/Indemnities/Guarantees
Usage
Trade related payments
User
Importer/Exporter
Payment by
Bank to bank
We provide specialist facilities (Foreign Currency bonds, indemnities
and guarantees). Please talk to your Relationship Manager for more
details or call our Customer Services on 0845 601 5599 or
+(0)2890 433 433.
A Documentary Collection is a method of making/receiving payment
through the banking system for a consignment of goods shipped,
in exchange for the delivery of documents.
Exchange Rates
Exchange rates are based on currency market rates. Exchange rates
for most transactions up to the value of £10,000 Sterling equivalent
are available at our branches and other rates are available on request.
Documentary Letter of Credit
Usage
Trade related payments
Charges
User
Importer/Exporter
Payment by
Bank to bank
Our current charges for International Services are listed in our Fees
and Charges for Foreign Currency Account Transactions and
International Payments on the back cover. In some cases,
correspondent and/or overseas banks may make additional charges
in addition to those shown in our Schedule. These will be advised to
you when the service is provided. Bank of Ireland reserves the right
to vary its charges from time to time.
A Documentary Letter of Credit is the written undertaking of a bank
made at the request of a buyer to honour drafts or other demands
for payment from the seller’s bank upon compliance with the
conditions specified in the Letter of Credit.
Quick Guide to Making or Sending Payments Abroad
PAYMENT
USED BY/FOR
SPEED
To Beneficiary
From Your Account
COMMENT
Telegraphic
Transfers
Sending funds bank
to bank
Fast - can be same day
to the United States. Other
countries take one to three days
Day of despatch
Fast, secure and
widely used
Foreign Drafts
Sending payments
by post or making
payments in person
Slow - by post
Immediate
Reliant on postal
systems. Not suitable
for urgent payments
Personal/Company
Cheques
Payment by post or
in person. May have to
await clearance
Slow - by post
When presented by
bank abroad
Not recommended,
slow and expensive
for beneficiary
Documentary
Import Collection
Imports
Per agreed terms
Per agreed terms
Normally bank to
bank transaction
(Import) Documentary
Letter of Credit
Imports
Per agreed terms
Per agreed terms
Bank to bank
transaction
Quick Guide to Receiving Payments from Abroad
PAYMENT
USED BY/FOR
SPEED
To Beneficiary
To your Account
COMMENT
Telegraphic
Transfers
Receiving money from
abroad via banking system
Fast - one to three days.
Slow if posted
n/a
Secure and simple by
telegraphic transfer
Foreign
Cheques/Drafts
Receiving payments
by post
Slow - cleared for value
within five working days
(can be unpaid)
n/a
May be sent on collection
or negotiated with recourse
to customer in case of
non-payment
Documentary
Export Collection
Exports
Per agreed terms
n/a
Secure method of
receiving payment
(Export) Documentary
Letter of Credit
Exports
Per agreed terms
n/a
Conditional guarantee
of payment
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