Brexit causing increased costs for EUR payments from UK
At the beginning of the year, Banking Circle identified a ‘Brexit-premium’ affecting some financial institutions handling cross border transactions from the UK to the EU – namely that a number of EU banks have increased their fees for receipt of SEPA local payments in EUR from GB IBANs.
There have since been further reports in the market of rising charges related to Brexit, including one which found that customers of bank Revolut faced increased fees for ATM withdrawals and international money transfers.
These added costs come at an already challenging time for businesses, as they grapple with the impacts of the COVID-19 pandemic.
“We have had a number of our clients come to us since the start of the new year to ask for assistance with handling EUR payments from GB IBANs,” Nischa Us, Banking Circle’s Head of Sales, said – explaining that the price hikes are unhelpful for financial institutions supporting businesses that are trying to continue to trade across borders in current conditions.
As a cross border payments specialist, Banking Circle can help clients to cut out the ‘Brexit-premium’ by using a local IBAN solution that enables transparent, local payments and collections across borders, without the need for a physical presence or a relationship with a correspondent bank in that region.
“Because the core ethos of Banking Circle is to make international payments feel like local payments, we can provide IBANs which cover both the UK and European market. And this means payments providers can offer their UK merchants & clients certainty of cost,” Nischa explained.
This means there is no need for financial institutions’ customers to accept increased fees because of Brexit – an important added-value for Banks and Payments businesses to give their customers.