EU reduces charges for cross-border Euro Transactions
The European Parliament has approved plans to make banks to chop fees on cross-border euro payments between EU countries that are in the euro zone and those that are not.
EU ambassadors toda endorsed the provisional agreement reached between the presidency and the European Parliament on aligning the costs of cross-border payments in euros between euro and non-euro countries and increasing the transparency of charges related to currency conversion services across the EU.
Hartwig Löger, minister of finance of Austria, which currently holds the Council presidency said:
“Today’s agreement is a major step for consumers and businesses in the single market. We are not only reducing the charges for payments in euros within the EU, but also ensuring that charges related to currency conversion services are more transparent allowing consumers to make informed decisions.”
Commission VP Valdis Dombrovskis, says:
“With this agreement, non-euro country citizens will also enjoy one of the benefits of the euro. That is, low-cost euro transactions using highly efficient euro payments infrastructure. Moreover, this regulation will boost competition in the area of currency conversion. And it will allow Europeans to easily check and compare conversion charges when paying abroad with their cards, or when sending money online to a country with another EU currency.”
In addition, the agreed text increases the transparency requirements relating to the charges for currency conversion services. When consumers make card payments or withdraw cash abroad, they can often choose whether to pay in the local currency or their home currency. According to the new rules, consumers will be informed of applicable charges before making their choice