International transfer fees

Neil_Sedaka

Hi all,

As a sole trader, I recently placed a test order to a UK supplier and paid via AIB online transfer (€ to £)

I was charged €15 by AIB for the transfer and would like to continue using the UK supplier, but was hoping there may be a more cost effective way to pay further payments.

I'd rather not go down the route of Currency Cards if possible.

I have an AIB Visa Debit card and was wondering if paying over the phone would be a cheaper option.

The UK supplier suggested using an agency to make further payments, but I have no experience with these.

Can anyone advise please?

Thanks guys.

Neil_Sedaka

The UK supplier has a 3% transaction fee for credit or debit card payments, but these related to UK cards.

jimmii

We use a lot of uk suppliers I've never come across any charging a card fee before. Is it possible for them to inoice in euro at all? Then the transfer is free even if it's to a UK account its not something many are keen on but we have a couple who offer it so its worth asking. The only option I can think of to make it cheaper is to use a service like currency fair I use them to move money back and forth I think you need to have an account over there though.

Mr Clonfadda

We use Transfermate. They pay our supplier in GBP at a rate +€5 fee. we pay them euro in account in Ireland.

Neil_Sedaka

Thanks Mr Clonfadda, will certainly take a look at Transfermate.
Very much appreciated.

jimmii

Transfer fee on currencyfair is €3 but I don't think it has as many features. To make the system work better for you act as a seller rather than a buyer that way you'll be able to get better than the market rate. Both companies seem pretty decent and one nice thing is both have offices in Dublin!

Nuttzz

https://transferwise.com/ is another good option

jimmii

Nuttzz wrote: »

https://transferwise.com/ is another good option

Those adverts though! I'd not use them purely due to that!

delahuntv

Neil_Sedaka wrote: »

The UK supplier has a 3% transaction fee for credit or debit card payments, but these related to UK cards.

Never heard of 3% in my life - fixed fee fir debit (incl international debit) of 10p - 20p.
Up to about 1.5% for credit cards, depending on your processor.

Transfermate are a good option.

Neil_Sedaka

delahuntv wrote: »

Never heard of 3% in my life - fixed fee fir debit (incl international debit) of 10p - 20p.
Up to about 1.5% for credit cards, depending on your processor.

Transfermate are a good option.

From the horse's mouth as it were,

"Payment methods accepted are bank transfer, debit card and credit card (subject to a 3% transaction fee)"

Neil_Sedaka

Transfermate are certainly looking appealing right now.

jimmii

Neil_Sedaka wrote: »

From the horse's mouth as it were,

"Payment methods accepted are bank transfer, debit card and credit card (subject to a 3% transaction fee)"

Are they a pretty small supplier? If they're a large one then they're getting a decent cut out of that 3% I would imagine especially on debit cards. Do they definitely charge on debit cards as well? You could read that as it being only credit cards they charge the % on which would make more sense even if it is still a good bit of a mark up on most companies processing rates.

delahuntv

Neil_Sedaka wrote: »

From the horse's mouth as it were,

"Payment methods accepted are bank transfer, debit card and credit card (subject to a 3% transaction fee)"

ah - that's their own fee. A very profitable fee. (actually illegal now under EU regs, fee can now just be the actual fee charged)

edit - I reckon that the 3% fee only applies to credit card and debit cards have no charge. Check with them as if the payments are small, then debit card will be best.

Neil_Sedaka

Yeah, the way it's worded you could take two meanings from that line!!

They did say there was a fee for debit card transactions, but seemed a little confused as to whether AIB or HSBC would apply the fee and what the rate would be.
They actually also recommended an agent going forward.

jimmii

Neil_Sedaka wrote: »

Yeah, the way it's worded you could take two meanings from that line!!

They did say there was a fee for debit card transactions, but seemed a little confused as to whether AIB or HSBC would apply the fee and what the rate would be.
They actually also recommended an agent going forward.

When they suggest an agent do they mean one they have acting on their behalf here or some sort of agent just for making the transfer? We use agents for a couple of UK suppliers and they're based here so invoice us in Euro which makes it a lot easier those are actually the companies I was referring to earlier that invoice in euro to a UK bank account. Ask them for the agents details and see what the story is.

Neil_Sedaka

Hi jimmii,

I have asked the supplier to recheck with their bank today and they are awaiting a reply.

Regarding agents, that call would be up to me and I'm seriously considering Transfermate at the moment.

Thanks.

jimmii

Yeh worth looking into I use currency fair a lot you save a fortune and it often ends up being quicker than an Ireland to UK bank transfer. The UK end of the transaction is almost instant (like most transactions there) and the Irish end normally takes 24 hours or so. Total time really depends on how long you take with the exchange instead of just buying sterling I normally offer my euros for sale the difference is only small but it feels good to get better than the market rate for the exchange the liquidity on currency fair is pretty good so it never takes very long to get matched especially on a Friday or Monday.

Neil_Sedaka

Cheers,

Thanks to all of you for the advice, much appreciated.