What was the charge described as? It was not a foreign exchange charge or commission so my guess is that it was a cheque clearance/handling fee. As far as I know there is still no eurozone wide cheque clearance system so cross border € cheques must be cleared/processed manually and this is where the charge arises. Not saying that this is any more reasonable or acceptable but just making the point that it was not a € to € conversion charge per se.
converting euro to euro
- Thread starter ClubMan
- Start date
V
Vanilla
Guest
On the ball as usual, Clubman!
I have the receipt to hand- it says' EURO FX Cheques bought at rate 1.00,...commission charge: €60.00
I have the receipt to hand- it says' EURO FX Cheques bought at rate 1.00,...commission charge: €60.00
That does not make sense to me. I thought that when the € was adopted but the "legacy" currencies were still in circulation all forex charges, commissions and bid-offer spreads on conversions between these were outlawed and, presumably, the same applies to cross border € payments such as this now that the € currency is in circulation? If the charge was detailed as a cheque handling/clearance fee as opposed to (forex) commission then it may be acceptable but as far as I know charging commission on such a transaction should not be allowed. Note that I'm not confusing this with the harmonisation of charges on cross border euro payments recently introduced recently but which does not apply to cheques. I'm just wondering if the charging of a commission as opposed to a clearance/handling fee in this case is technically illegal? Perhaps somebody in the banking business could clarify?!?
R
rainyday
Guest
I know the banks generally recommend against either sending or receiving Euro cheques across borders, due to the charges involved (though I can't really explain how/why these charges arise). They usually recommend electronic transfer using IBAN numbers.
Whatever happened to the oul Eurocheque system of the 80's & early 90's that allowed us to write cheques for any of the major European currencies from our own account and send them off? So much for progress eh?
Whatever happened to the oul Eurocheque system of the 80's & early 90's that allowed us to write cheques for any of the major European currencies from our own account and send them off? So much for progress eh?
N
ninsaga
Guest
most likely due to the fact the the cheque is being drawn down on a foreign bank - now ya'd harley expect them to do it for free would ya!
ninsaga
ninsaga
most likely due to the fact the the cheque is being drawn down on a foreign bank - now ya'd harley expect them to do it for free would ya!
No - but I thought that commission as opposed to handling/clearance charges on such transactions were illegal! Am I wrong?
No - but I thought that commission as opposed to handling/clearance charges on such transactions were illegal! Am I wrong?
V
Vanilla
Guest
This is one of those annoying bureaucratic things that banks do....deep breath! 
I got a cheque from France ( any one who read my other thread on Property Investment - I got my deposit back, Yeh!) and went to lodge it today- the cheque is for approx. 18000, the bank charged me commission to 'convert' it to irish euro of €60.
Surely this is ridiculous - what is the point of a single currency?
I got a cheque from France ( any one who read my other thread on Property Investment - I got my deposit back, Yeh!) and went to lodge it today- the cheque is for approx. 18000, the bank charged me commission to 'convert' it to irish euro of €60.
Surely this is ridiculous - what is the point of a single currency?