MEMO/00/026
Brussels, 23 May 2000
Bankcharges in Europe - Release of New Study
This background document gives a fuller description of the results of the investigation into bank charges by the European Interregional Institute for Consumer Affairs
COMMENTS ON METHOD
The investigation involved the 11 countries which use the euro. In each country, four investigators, each with a bank account and an international payment card, carried out banking operations in the last week of November and the first week of December 1999.
Transfers: Each investigator made eight transfers to two different countries and also received eight transfers. One of the advantages of this method is that there were transfers both from bank A to bank B and the other way round.
Altogether, in other words, there were 4 x 8 x 11 = 352 transfers.
That means that for each country there were 32 transfers to two different countries.
All the transfers were for €100, denominated and carried out in euros. On each occasion the investigator (as the customer ordering the transfer) asked for all charges to be debited from his or her account.
Bank card transactions: The four investigators from each country then went to a neighbouring country and withdrew about €100 in cash, followed by a second withdrawal of about €50, from automatic cash dispensers.
In other words, there were 11 x 4 = 44withdrawals of €100 and 44 of €50.
Each investigator also made a purchase worth roughly €25 using his or her international payment card. So 44 purchases were made.
Exchanging cash: Once back home, each investigator changed the money obtained from the automatic cash dispensers. The €100 withdrawal was changed at the investigator’s own bank and the €50 withdrawal at a bureau de change.
Note: The study does not cover all the possible combinations of euro zone countries. This skews the results, as certain “pairings” might be particularly advantageous or disadvantageous in terms of charges, so the study does not give a full picture of the position of each country visàvis each of the ten others.
The point of the study, in other words, was to take a sample so as to identify both the satisfactory aspects and any malfunctioning in the system.
UNPROCESSED RESULTS
Transfers
Charges
Issuing country / Country of destination / Average charges to payer (€) / Average charges to payee (€) / TOTAL CHARGESLuxembourg / F, D / 8.15 / 0.76 / 8.91
Netherlands / F, D / 8.68 / 1.32 / 10.00
Austria / I, NL / 9.56 / 1.05 / 10.61
Belgium / D, IRL / 13.37 / 0.00 / 13.37
Germany / B, FIN / 13.39 / 0.39 / 13.78
France / NL, B / 15.36 / 1.52 / 16.88
Italy / A, F / 16.10 / 2.18 / 18.28
Finland / IRL, P / 19.77 / 0.34 / 20.11
Spain / P, I / 15.48 / 5.02 / 20.50
Ireland / FIN, E / 25.61 / 0.37 / 25.98
Portugal / E, A / 25.13 / 4.55 / 29.68
Average / 15.51 / 1.59 / 17.10
These figures are arithmetic means. There were wide variations within individual countries: for example, a transfer from France to Belgium cost €5.52 to send from one bank and €28.28 from another. The cheapest transaction cost €1.98 from Luxembourg to France and the dearest €46.76 from Italy to Austria.
Transfer costs in one direction are very different from transfer costs in the other. So, for example, a transfer from Germany to Belgium can cost €16.04, while the same transfer, between the same two banks and on the same day but from Belgium to Germany, costs €7.26. Similarly, transfers from Italy to Austria cost on average 41% more than transfers from Austria to Italy. Transfers from Ireland to Finland cost 43% more than transfers from Finland to Ireland.
Double-charging
Payees were charged fees in 25% of cases, contrary to the express instructions given and in breach of Directive97/5, which entered into force in August 1999. There were wide variations, however: payees were charged fees on 50% of the payments received in Austria and Spain. Ireland was the only country where no charges were levied on incoming payments, whereas in Spain charges were imposed on transfers from Ireland in four cases out of 16.
There were no charges in the destination countries (Germany and Ireland) on the payments from Belgium, but seven out of the 32 transfers received in Belgium were charged for.
Time taken
The great majority of transfers reached the payee’s account in two to four days. 94.8% of transfers reached their payees within the six days stipulated in Directive97/5.
A more detailed analysis shows that this is not a problem peculiar to certain countries but has more to do with the originating bank.
Failure to carry out instructions
Twelve transfers, including ten involving Portugal, were not credited in full: charges were levied by an intermediary.
Two transfers had not reached their payees after five months.
Bank card transactions
Charges on the €100 withdrawals ranged from 1.74% in Ireland to 5.89% in Portugal. The average was 3.84%. Charges on the €50 withdrawals ranged from 3.48% in Ireland to 8.89% in Italy, with an average of 6.14%.
Commission on the bank card payments ranged from 0.00% to 0.79%.
Money changing
The cost of exchanging actual banknotes (to a value of €100) in the banks was roughly 3.3%. In the bureaux de change, for banknotes worth €50, the figure was 7.07%.
Complaints and settlement of disputes
(under Article 10 of Directive 97/5 on cross-border transfers)
Belgium
Association Belge des Banques (ABB)Tel. +32.2.507.68.11
Rue Ravenstein, 36, bte 5Fax +32.2.507.69.79
B - 1000 Bruxelles
Médiateur auprès de la PosteTel. +32.2.204.81.00 (FR)
Dienst Ombudsman De PostTel. +32.2.204.82.00 (NL)
W.T.C. Tour IITel. +32.2.204.83.00 (DE)
Chaussée d’Anvers/Antwerpsesteenweg 59Fax +32.2.204.84.00
B - 1000 Bruxelles/Brussel
Denmark
PengeinstitutankenævnetTel. +45.35.43.63.33
Østerbrogade 64, 4Fax +45.35.43.71.04
DK - 2100 København Ø
Germany
Deutsche Bundesbank Tel.: +49.69.95.66.40.50
Schlichtungsstelle Fax: +49.69.95.66.40.56
Postfach 100602
D - 60006 Frankfurt am Main
Greece
Hellenic Banking OmbudsmanTel. +30.1.33.76.700
12-14 Karagiorgi Servias StreetFax +30.1.32.38.821
GR - 105 52 Athense-mail:
Spain
Servicios JurídicosTel. +34.91.338.57.58
Banco de EspañaFax +34.91.338.65.22
Alcalá, 50
E - 28014 Madrid
France
Normally Médiateurs set up by individual banks –
if there is none, complaints go to:
Association Francaise des BanquesTel: +33.1.48.00.52.52,
18 rue La FayetteFax: +33.1.42.46.76.40
F - 75009 Paris
Ireland
The Ombudsman for the Credit InstitutionsTel. +353.1.478.37.55
8 Adelaide CourtFax +353.1.478.01.57
IRL - Dublin 8
Italy
Ombudsman BancarioTel. +39.06.67.67.353
Via delle Botteghe Oscure 46Fax +39.06.67.67.400
I - 00186 Romae-mail:
Luxembourg
Commission de Surveillance du Secteur
Financier (CSSF)Tel. +352.26.251.226
110, Route d’ArlonFax +352.26.251.603
L - 2991 Luxembourge-mail:
Netherlands
Stichting Geschillencommissie Tel. +31.70.310.53.10
voor ConsumentenzakenFax +31.70.365.88.14
Surimanestraat 24
NL - 2585 GJ 's Gravenhage
Austria
Arbeitskreis "Ombudsstellen der
österreichischen Kreditwirtschaft"Tel. +43.1.501.05.31.32
Wirtschaftskammer ÖsterreichFax. +43.1.501.05.272
Wiedner Haupstrase 63e-mail:
A - 1045
Portugal
Centro de Arbitragem de Conflitos Tel. +351.1.888.36.23
de Consumo Fax +351.1.888.37.67
Mercado Chão de Loureiro (1st floor)
Largo do Chão do Loureiro e-mail:
P - 1100 Lisboa
Finland
Consumer Complaint BoardTel. +358.9.7726.7900
Box 306Fax +358.9.753.4880
Kaikukatu 3
FIN - 00531 Helsinki
Sweden
The National Board for Consumer
ComplaintTel. +46.8.783.17.00
P.O. Box 174Fax +46.8.783.17.01
S - 101 23 Stockholm e-mail:
United Kingdom
The Banking OmbudsmanTel. +44.20 7964 0692
South Quay PlazaFax +44 20 7964 0693
183, Marsh Walle-mail:
UK - London E14
From early 2001 (exact date not yet confirmed)
Financial Ombudsman Service Tel. +44.207.942.0942
South Quay PlazaFax +44.207.942.0943
183, Marsh Wall
UK - London E14 9SR
EFTA Countries
Iceland
Complaints Committee
c/o Bankers’ Association of Iceland
Austurstraeti 5
IS - 101 Reykjavik
Norway
The Norwegian Banking Complaints Board Tel. +47.22.20.30.14
Universitetsgaten 8 Fax +47.22.20.31.90
Post Box 6855, St. Olavs Plass e-mail:
N - 0130
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ANNEX
1.4Total cost, by country of transfer origin
Figure B.1.4.a:Average total cost of a transfer, by country of transfer origin (average cost to originator + average cost to beneficiary)
Country of origin / Average cost to originator (€) / Average cost to beneficiary (€) / TOTAL COSTLuxembourg / 8.15 / 0.76 / 8.91
Netherlands / 8.68 / 1.32 / 10.00
Austria / 9.56 / 1.05 / 10.61
Belgium / 13.37 / 0.00 / 13.37
Germany / 13.39 / 0.39 / 13.78
France / 15.36 / 1.52 / 16.88
Italy / 16.10 / 2.18 / 18.28
Finland / 19.77 / 0.34 / 20.11
Spain / 15.48 / 5.02 / 20.50
Ireland / 25.61 / 0.37 / 25.98
Portugal / 25.13 / 4.55 / 29.68
Average / 15.51 / 1.59 / 17.10
Figure B.1.4.b:Average total cost of a transfer, by country of origin (average cost to originator + average cost to beneficiary)
Figure B.2.1.b:Charges, by card-issuing country (chart)
Figure B.2.2.1.d: Cash dispenser withdrawals – approximate amount €100
Charge, by card-issuing country
Figure B.2.2.2.d: Cash dispenser withdrawals – approximate amount €100
Charge, by country in which the withdrawal is made
Figure B.3.1.b:Average cost of exchanging banknotes in a bank, by country (chart)
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