Bank of Ireland is preparing to cut the cost of making cross border payments for customers who opt to conduct these transactions through its internet banking site. The move was announced ahead of the enforcement of a new EU regulation that will force banks to streamline transactions charges.
The bank has said that it will cut the €36.80 fee which applies when transferring $25,000 out of a euro account from Ireland to the US to €8.80. Customers making the largest transactions in euro, sterling and dollars stand to benefit most from the cheaper fees, according to the bank. The reduced fees will come into effect on July 1st when the new regulation comes into force.
The new EU regulation demands that all electronic transactions within the euro zone of €12,500 or less must attract the same charge as an equivalent domestic transaction. This should ensure that customers paying suppliers in Germany will incur the same transaction fee as one settling his account with another Irish-based business.
Bank of Ireland has said that it will also reduce the costs of all business online cross-border payments within the euro zone, including payments above this amount. The reductions will range from 49 per cent to 59 per cent depending on the urgency of the payment.
Transactions of less than €12,500 will not attract any fees once they are conducted online.
"By making their cross-border payments online, our customers can benefit from savings of as much as 76 per cent on transactions compared to paper alternatives," according to Mr Tom Comerford, director of the bank's business banking operations.
