SEPA payments free?

andrew111

Hello,

Just got off the phone with HSBC as wanted to ensure that my payment from my HSBC Euro account to another Euro account within the EU would be free. NO! Apparently HSBC charges £17 for any SEPA payments above 2000 Euro. Is this legal?

I thought SEPA would improve the way payments are done and lower the cost as well, apparently not. Has anyone else experienced the same?

jonesMUFCforever

They are free if you are in a Euro currency country sending to another Euro currency country.
The UK is not a member.

Hazzanet

The UK is a member of SEPA, but not a member of the Euro.

Euro to Euro transfers between members of SEPA should not be charged at a higher rate than that of a Euro to Euro payment within the border of the originating country. Therefore if Euro to Euro is free within, say, Spain, then it must be free between Spain and Italy, for example. Similarly if France charges €1.00 to send from Calais to Paris, then they cannot charge more than €1.00 to send from Calais to Helsinki.

Sweden voluntarily opted into the scheme, even though they use the Swedish Kronor, so SEK to EUR payments are the same price whether within Sweden, or between Sweden and another SEPA country.

Sadly, the UK opted out of the legislation, and therefore UK banks are free to charge what they will for a GBP to EUR transaction, or even a EUR to EUR transaction.

andrew111

Hazzanet wrote: »

The UK is a member of SEPA, but not a member of the Euro.

Sadly, the UK opted out of the legislation, and therefore UK banks are free to charge what they will for a GBP to EUR transaction, or even a EUR to EUR transaction.

I see, thanks for the explanation.

The better option for me I guess is to cancel the Euro account with HSBC (as there is a monthly fee) and then use some third party for transferring money (with a good exchange rate) to a Euro country.

henm2

From a HSBC personal account such payments can be done in Euros as a SEPA payment up to £30,000- daily ONLINE to a bank within the Euro zone for £4-00.
Can also be done online though business internet banking from a business account again for £4-00 but you need an online payment limit set up to cover it which has a flat monthly fee of £6-00.

andrew111

henm2 wrote: »

From a HSBC personal account such payments can be done in Euros as a SEPA payment up to £30,000- daily ONLINE to a bank within the Euro zone for £4-00.
Can also be done online though business internet banking from a business account again for £4-00 but you need an online payment limit set up to cover it which has a flat monthly fee of £6-00.

Ok, but I was told by HSBC that any Euro payment over 2,000 (not sure if it was £ or €) would have a charge of £17. Below 2,000 was charged at £4...

Apparently an above 2,000 payment is not categorised as a SEPA payment, and that is why they charge £17. Don't ask me why...

henm2

If making a payment online the limit of £2000 currency equivalent is for 'worldpay' payments not SEPA.
You are limited online for SEPA payments by the payment limit for international online payments which is £30k for personal internet banking and in the case of business internet banking whatever international limit has been previously set up.
Maximum charge £4 per SEPA online payment and if going to another HSBC bank account abroad from a uk HSBC personal account online then it is free.
http://www.hsbc.co.uk/1/2/international-money-transfer/details