International transfers

camdencailin

Hi All,

I'm looking for some advice, I hope someone can help. We (the bridesmaids) are organising a hen night for April this year in Belfast. We're just at the stage of collecting money from everyone, but its a little complicated because the attendees are scattered all over the world. Has anyone come up against this problem before? What have you done to make sure that the attendees/the bridesmaids don't end up losing out through currency conversions & bank charges?

Our plan at the moment is that we will advise attendees of the approximate price shortly and that they can pay into a euro or a sterling bank account during a 2 week window in the next couple of months (to allow for time to save if needed). We will update them with the exact euro price in advance of the 2 week timeframe. We can then transfer the euro contributions in one lot over to a sterling account and pay the amount due for accommodation etc. Can anyone see any problems with this plan? Is there a better way to do it? I've seen websites you can use to collect funds within a group but I'm not sure if it would work with international transfers.

Thanks for your help!

agrinnall

It sounds like a good plan to me. It might be better asked on the Banking board as it's not really a Travel question, but they probably won't come up with an alternative that's any more straightforward. The only thing you should think about is how to transfer the Euro funds to the Sterling account, using the bank is probably not going to be the cheapest option, you should take a look at currency brokers, especially if it's adding up to quite a significant amount once everybody has paid in.

mgdavid

if they are scattered all over the world where does the Euro account come in? Why would you/they incur two lots of currency conversion charges instead of just one?
Also, if any of them are ex-pats they may have kept a UK account open for just this sort of expense (as my son in Oz has).

eDicky

There's potential cost and complication every time a transfer or currency conversion is made, so avoid doing it more than once - forget about the euro account.

Have the participants send their contributions to a suitable GBP account, ideally using a transfer service such as TransferWise, which will minimise cost and indicate the amount required in their currency for the target amount in GBP.

Voyager2002

Don't do it...

Prices (and exchange rates) will change, and some people will feel ripped off. And of course some people will change their minds about coming, particularly when the full costs are known. You will end up losing friends, and probably having to pay the deposits and cancellation fees for those who drop out.

No: simply make sure that everyone knows the dates and the chosen hotel (and perhaps any cheaper accommodation convenient for it) and allow them to make their own bookings.

agrinnall

mgdavid wrote: »

if they are scattered all over the world where does the Euro account come in? Why would you/they incur two lots of currency conversion charges instead of just one?
Also, if any of them are ex-pats they may have kept a UK account open for just this sort of expense (as my son in Oz has).

I assumed that the Euro part was for people who live in the Eurozone, and that everyone else would use the sterling account, so a maximum of one conversion for anyone.

camdencailin

Hi All,

Thanks so much for your responses! When I say scattered around the world, 50% are still in Ireland with the rest of us in the UK, Australia, Canada, US etc. Anyone in the Eurozone can transfer to the Euro account and then we will do one bulk transfer to the sterling, minimise the charges - I hope that's a logical way to do it. We've added in a little extra to the overall fee to cover charges and to account for currency fluxuations, anything we have over at the end we will put toward drinks on one of the evenings.

Voyager2002 - thanks for the advice, it sounds like its from experience! We've negotiated really low minimum numbers so we shouldn't lose out. If it was a different group of friends, I'd be insisting they all book themselves, but this group is pretty reliable so I hope we're not let down!

Thanks again for all your help and I'll try posting in the Banking board too!

eDicky

Ok, now it makes more sense, assuming that it's a euro account in RoI so that free SEPA payments can be made into it. Although the 'exact euro price' is going to vary day by day against the GBP price, when known.

For the others just quote the price in pounds, to avoid conversion twice. It will be their responsibility to send enough in their own currency that makes up the payable amount when converted and received in a GBP account, or make up any difference later.

The most economical and exact way for them (and for sending the euro lump sum), cutting out all bank charges and bad rates, is to use a service such as TransferWise, who will quote the amount in their own currency needed for the exact amount to arrive in GBP. It will include a little extra 'buffer' to cover any exchange rate fluctuation during the transfer, this then being paid back to them. TransferWise converts at the perfect mid rate, charging a small percentage (eg. 0.5% for euros).