Charges on Sterling IBAN Transfers

CapedCrusader

Hi folks,

A particular supplier in the UK deducts £7 from every Sterling IBAN transfer I make. I pay many suppliers this way and only one of them deducts this charge. My bank tell me they don't charge for these payments so it must be the receiving bank.

Is this common practice?

This is annoying because I don't get an invoice for this, which is effectively a charge to me. I presume they would be obliged to give me some soft of receipt for this at least?

I'm a retailer and it costs me to receive money from my customers, but I don't charge them for this!

sm.org

Banks charge to send and receive IBAN transfers. I'd be very surpised if your bank is not charging you. His bank is most definitely charging him to receive the money.

Some retailers/suppliers will asorb both sending and receiving costs to keep their customers happy but it varies from case to case.

CapedCrusader

sm.org wrote: »

Banks charge to send and receive IBAN transfers. I'd be very surpised if your bank is not charging you. His bank is most definitely charging him to receive the money.

Some retailers/suppliers will asorb both sending and receiving costs to keep their customers happy but it varies from case to case.

Thanks for the reply.

Would it be normal to receive a receipt? In not, it makes account difficult. For example (leaving out currency exchange for simplicity) - I owe supplier A €1000 and have an invoice for €1000. However, my back account shows an outgoing of €1010. How do I account for this?

Regards,

Jody

Mr. Presentable

Three of my suppliers are in the UK. I pay all electronically and my bank charges me for this (€5.00 per transaction). All charges at the other end go to my suppliers and they are OK with it. Perhaps it is to do with the size of payment, OP. €7.00 is nothing to pay when receiving thousands...........

Mr. Presentable

CapedCrusader wrote: »

Thanks for the reply.

Would it be normal to receive a receipt? In not, it makes account difficult. For example (leaving out currency exchange for simplicity) - I owe supplier A €1000 and have an invoice for €1000. However, my back account shows an outgoing of €1010. How do I account for this?

Regards,

Jody

You need an analysis category in your accounts for Bank Charges and stick them in there.

CapedCrusader

nipplenuts wrote: »

You need an analysis category in your accounts for Bank Charges and stick them in there.

My problem is that I have no invoice or receipt for these charges... they are just implicit in that the amount I transfer is greater than the invoice I receive. I.e - the supplier is deducting the charge at their end - so if I receive an invoice for €1000 and send them €1000, then I still owe them €7!

madmik

if its not listed on the invoice then just send them the 1000

they will either swallow the charge themselves or adjust the invoices accordingly to reflect this

sm.org

madmik wrote: »

if its not listed on the invoice then just send them the 1000

they will either swallow the charge themselves or adjust the invoices accordingly to reflect this

+1. I'm inclined to agree. We all pay a delivery charge from our suppliers. A few of my suppliers deliver directly me at a profit.

The £7 charge is your suppliers cost of having your money delivered to them. I'd make them absorb it.

Times are tough .

Aelfric

Try sending a Sterling Draft instead. Get a receipt from the Post Office or your Bank at this end, and there's no other charge to pay then. It's exchangeable for cash, or bankable at the other end.

lorenzo63

I sent a sterling draft from Ireland to a relation of mine in the UK recently and he says the bank charged him a £20 pound fee to cash it, that sounds like a complete rip off. Does anyone know a way around this or can anyone one tell me if it can be disputed in anyway, I paid for the sterling Draft at the post office along with the obligatory exchange rate and draft fee itself; it seems petty to charge the drawee another 20 quid at the other end of the exchange.

Compton

I'm paying €15.00 for sending money and the receiver gets charged £7.00 AFAIK

Peterdalkey

sm.org wrote: »

+1. I'm inclined to agree. We all pay a delivery charge from our suppliers. A few of my suppliers deliver directly me at a profit.

The £7 charge is your suppliers cost of having your money delivered to them. I'd make them absorb it.

Times are tough .

+1. It is their problem to deal with this. The issue is most likely a jobsworth in their accounts dept. you are not responsible for their bank charges.

If they make an issue of it ask them to pay your bank charges!, they will run a mile with their tail between their legs. Exporters know how the game is played!

Cheers

Peter

Peter

Compton

It should just be included in the price

lorenzo63

No arguements there, the banks always find some way of screwing you.