Receiving international payment

JohnLock

Hey
I received around £4.5k yesterday in monthly royalties from Amazon deposited into my basic Lloyds bank account. It was an international payment from the USA.
How much do Lloyds deduct from this as a fee to receive international payments like this?
And is the money converted from pounds to dollars on the day it is paid into my Lloyds account, or is converted when it leaves the bank in the USA?

Ty.

agrinnall

https://www.lloydsbank.com/business/retail-business/rates-and-charges/international-services-rates-and-charges.asp

Willing2Learn

For personal accounts:

Lloyds charge £7 to receive international payments worth over £100.

They'll convert the money you've received into pounds sterling on the day they pay it into your account using their standard exchange rate for international payments.

JohnLock

Willing2Learn wrote: »

Lloyds charge £7 to receive international payments worth over £100.

They'll convert the money you've received into pounds sterling on the day they pay it into your account using their standard exchange rate for international payments.

Does the exchange rate vary from bank to bank, or is it the same for all banks?

Willing2Learn

The exchange rate used may vary from bank to bank, some will take commission whilst others may be commission free. You need to look at the T&Cs for all banks. Then you will have your answer.

Edit: I should add, that if you are using the account for ongoing business transactions, then you should open a business account.

JohnLock

I thought the Bank of England sets the exchange rate for all banks?

Willing2Learn

The rate is set by the market. Most banks charge commission to earn some money on the transactions.

eDicky

Currency exchange rates are constantly fluctuating when forex markets are open (weekdays), and are nothing to do with the Bank of England.

When any regular UK bank receives a USD payment from overseas, in addition to the fee it will impose an exchange rate that is probably 3%+ worse than the interbank (or mid-market) rate. You could call this a commission, but it's not usually so transparent. You can compare the rate they have given you with the averaged mid-market rate for that day.

If you have future payments and want to avoid such losses, consider an account with Fineco Bank UK, TransferWise (Borderless Account) or Revolut, for receiving the dollars.