Regular business account transfers from Santander bank to the euro is now cheaper with the new SEPA payment system but are you getting the best exchange rates? Sending monthly business payments overseas to pay for employees, products, services, overheads or other business costs is cheaper, quicker and generally less hassle when you’ve a dedicated currency broker to set up and make the transactions on your behalf.
Basically, the SEPA rules are written around euro or EU banking. They take no account of currency conversion or transfer exchange rates, which is what happens if money is transferred into or out of the euro zone. European banks including Santander can still charge anything they like for that service, irrespective of SEPA. For further information regarding SEPA you could ask a currency broker or you could contact your local Santander bank branch.
The table below compares Santander bank with our top, recommended currency brokers, showing the lowest monthly transfer amounts, together with the minimum term offered for the broker or bank:
*Note: Commission fees are based on the bank or broker’s standard method of transferring money overseas to other currencies (example: GBP to EURO / EURO to GBP). For SEPA commission fee information, please see below.
For businesses who transfer regular amounts overseas to make payments in the euro or other popular European currencies, using a currency broker is a money saving decision if your monthly transfers exceed £250. For smaller amounts you’ll have to continue using Santander bank service.
Some good news regarding overseas transfers is that through a new initiative via the European Union, the initiative being SEPA, you maybe able to take advantage of low cost, regular currency transfers abroad. SEPA (Single Euro Payments Area) is a project to harmonise the way we all make and how banks process retail payments in euro currency. The aim of SEPA is to make payments in euro and across Europe as fast, safe and efficient as UK payments are today.
The good news at least covers the cost of commission fees as the transfer fees will be capped at a much lower rate per transaction using SEPA. The bad news is that all banks (Santander included) will still charge their own foreign exchange margin rate to the transaction. An example of this could be: A Santander bank SEPA transfer from UK pounds to the euro has a commission fee capped at £2.00 on the actual transaction, however the foreign exchange rate received has 5.0 percent taken off the money received, which is hardly the best business money transfer deal on the market. Moreover, SEPA payments can take longer to complete than transactions via a currency broker.