Transferred €100 to Spanish Santander account and only €55 arrived?

Ballard

retiredbanker1 said:

To me it seems that the transfer was NOT made as a SEPA transfer but an International Money transfer using SWIFT and somewhere down the line it would appear that there must be a CHAPS fee in there somewhere.
SEPA would require a full and accurate IBAN number - if this was entered incorrectly or not in the correct format I can easily see half the money being lost in charges.

Perhaps the OP could update us on this?

SWIFT is the secure, authenticated communications method that banks use to make almost all transfers so SEPA & CHAPS payments use Swift. CHAPS, however is solely for GBP transfers and probably not relevant to this thread unless the initial payment went in Sterling by CHAPS.

Complain to FD as this is a huge drop. Banks should have a duty of care to their customers to ensure that they're informed of charges before they enter into transactions. 

DullGreyGuy

Ballard said:

retiredbanker1 said:

To me it seems that the transfer was NOT made as a SEPA transfer but an International Money transfer using SWIFT and somewhere down the line it would appear that there must be a CHAPS fee in there somewhere.
SEPA would require a full and accurate IBAN number - if this was entered incorrectly or not in the correct format I can easily see half the money being lost in charges.

Perhaps the OP could update us on this?

SWIFT is the secure, authenticated communications method that banks use to make almost all transfers so SEPA & CHAPS payments use Swift. CHAPS, however is solely for GBP transfers and probably not relevant to this thread unless the initial payment went in Sterling by CHAPS.

Complain to FD as this is a huge drop. Banks should have a duty of care to their customers to ensure that they're informed of charges before they enter into transactions. 

Banks can only warn about the charges they apply, they will not be privy to whatever charges the recipient's bank may apply and therefore cannot warn about those.

It hit the press when the UK left the EU formally that Spanish banks were jumping on the opportunity to introduce charges for funds received from the UK as whilst they are still transferred with SEPA SEPA itself doesn't prohibit fees, the EU does and the UK isnt in the EU.

The OP could have paid a sending fee and the recipient a receipt fee and those add up to €45

Ballard

DullGreyGuy said:

Ballard said:

retiredbanker1 said:

To me it seems that the transfer was NOT made as a SEPA transfer but an International Money transfer using SWIFT and somewhere down the line it would appear that there must be a CHAPS fee in there somewhere.
SEPA would require a full and accurate IBAN number - if this was entered incorrectly or not in the correct format I can easily see half the money being lost in charges.

Perhaps the OP could update us on this?

SWIFT is the secure, authenticated communications method that banks use to make almost all transfers so SEPA & CHAPS payments use Swift. CHAPS, however is solely for GBP transfers and probably not relevant to this thread unless the initial payment went in Sterling by CHAPS.

Complain to FD as this is a huge drop. Banks should have a duty of care to their customers to ensure that they're informed of charges before they enter into transactions. 

Banks can only warn about the charges they apply, they will not be privy to whatever charges the recipient's bank may apply and therefore cannot warn about those.

It hit the press when the UK left the EU formally that Spanish banks were jumping on the opportunity to introduce charges for funds received from the UK as whilst they are still transferred with SEPA SEPA itself doesn't prohibit fees, the EU does and the UK isnt in the EU.

The OP could have paid a sending fee and the recipient a receipt fee and those add up to €45

You're right, of course. We don't know the breakdown of the fees and for some reason I'd ignored the fact that some, possibly most, will have been imposed outside of FDs control.

[Deleted User]

It's probably been sent via SWIFT plus the local bank in Spain has taken a chunky admin fee.

It's a consequence on being outside the Single Market / EEA since the B word. 

retiredbanker1

The terms I have got from FD's website covers all of the above arguments 

• Euro payment within the EEA (European Economic Area) - No fee.
• Euro payment outside EEA - £5 fee.
• Non-euro payment within the UK - £5 fee.
• Non-euro payment outside of the UK - £5 fee.

When making a payment within the EEA, the payment may incur intermediary and agency bank charges. You cannot cover these fees for the payee, and they will be deducted from the amount that arrives. 

When making a payment outside the EEA, you might also need to pay intermediary and agency bank charges. However, you can: 

• pay all the fees yourself
• share the fees with the recipient
• ask the recipient to pay the fees.

If you choose to pay all the fees or share the fees with the recipient, the payment fee will apply alongside any intermediary, agency and beneficiary bank charges.

Any fees to be paid by the payee will be deducted from the payment amount before arriving with the recipient where applicable.

[Deleted User]

retiredbanker1 said:

The terms I have got from FD's website covers all of the above arguments 

• Euro payment within the EEA (European Economic Area) - No fee.
• Euro payment outside EEA - £5 fee.
• Non-euro payment within the UK - £5 fee.
• Non-euro payment outside of the UK - £5 fee.

When making a payment within the EEA, the payment may incur intermediary and agency bank charges. You cannot cover these fees for the payee, and they will be deducted from the amount that arrives. 

When making a payment outside the EEA, you might also need to pay intermediary and agency bank charges. However, you can: 

• pay all the fees yourself
• share the fees with the recipient
• ask the recipient to pay the fees.

If you choose to pay all the fees or share the fees with the recipient, the payment fee will apply alongside any intermediary, agency and beneficiary bank charges.

Any fees to be paid by the payee will be deducted from the payment amount before arriving with the recipient where applicable.

HSBC/FD doesn't determine any fees other than it's own and it's abundantly clear they'd never charge €45 for €100. Therefore, quoting their website doesn't really move things along. 

retiredbanker1

Exactly so it could not have been a SEPA  payment.
This thread cannot move onwards until the OP comes back which is looking increasingly unlikely.