IBAN/BIC payments, charges & reversibility?

monkei

Hello

Newbie to international bank transfers.

I've received a payment via IBAN/BIC supposedly made in Euros (then converted to GBP by my bank) from a buyer in Europe. The payment shows on my statement as "F/FLOW [name of buyer]".

The payment received is about £12 less than I expected (taking into account my bank changes for receiving and exchange rate differences). Is this because the buyer did not select 'shared charges' when sending the money or is there some other possible reason for the shortfall?

The shortfall though is not really my main concern, and I may just let that go, as the cost is still less than if paypal was used.

My main concern is if the IBAN/BIC payment can be reversed at a later date? Should I wait a bit before sending goods?

Thanks.

zerog

monkei wrote: »

Is this because the buyer did not select 'shared charges' when sending the money or is there some other possible reason for the shortfall?

Why would the buyer select "shared charges"?

monkei

zerog wrote: »

Why would the buyer select "shared charges"?

Guides (google 'IBAN/BIC ebay') say to tell the sender/buyer who is paying using IBAN/BIC to select 'shared charges' and to pay in Euros. So each pays their own banking charges if applicable and to keep the transfer cost down by sending in Euros. As I said I am new to this but from what I've read it seems shared charges is normal practice(?) and the default option(?)

Is this not correct? Hence I'm wondering what happens if 'shared charges' is not selected and if it is the reason for the shortfall.

soolin

monkei wrote: »

Guides (google 'IBAN/BIC ebay') say to tell the sender/buyer who is paying using IBAN/BIC to select 'shared charges' and to pay in Euros. So each pays their own banking charges if applicable and to keep the transfer cost down by sending in Euros. As I said I am new to this but from what I've read it seems shared charges is normal practice(?) and the default option(?)

Is this not correct? Hence I'm wondering what happens if 'shared charges' is not selected and if it is the reason for the shortfall.

There is no 'normal' way of doing it, it all depends on what buyer and seller have agreed beforehand.

zerog

I don't think bank transfers are reversible, which is why I would never pay by one, but I would expect to pay the price stated, not that plus some extra fees.. but I don't know, if I was the sort of person who paid by bank transfer I might also be the sort of person to pay extra fees.

martindow

Shared charges is the usual method I believe. Within the EC there should be no charges although the bank will take its cut on the currency conversion. Did you agree the amount in Euros to be paid? Is the 12 pounds shortfall a small proportion of the total?

These international transactions seem to be getting quicker. I had a payment from Spain earlier this week that arrived the same morning as my customer paid it.

lcw295

I have just sold my Portuguese old House to an American he was committed to pay in Euros to UK Bank , which was then transferred to pounds its short by 2225.00 euros (approx 1700.00 pounds )
my Bank hands are tied as they just received it.
i do not know what to do , i am due to move out on 1st june
any advice out there ! any suggestions welcome

martindow

Banks will take a cut and there may be an intermediary bank and extra currency conversion if he paid from the USA in USD. However 1700 is a lot unless you were transferring a very large sum. Have you asked your bank for an explanation?

Inigo_Montoya

Using your bank to do the transfer is an expensive mistake because they charge you a big fee & give you a rubbish exchange rate

You want to be using a service such as transferwise.com

I have a post on the referrals board allowing you to get an initial completely free of charges transfer i.e.
https://forums.moneysavingexpert.com/discussion/4616641

bxboards

They should not be reversible - they are certainly a lot less reversable than Paypal.

If you are paid in Euros you'll usually get less, it seems to be around 2.5% less which I suppose is your bank doing an Euro to £ conversion.

If the sender makes the payment in £ you should recieve the exact amount.

martindow

bxboards wrote: »

If the sender makes the payment in £ you should recieve the exact amount.

Not necessarily as it depends who is down to pay the fee for an international transfer. Within the EC it is generally best to pay in local currency with shared fees.