According to a European Commission report, the implementation of European Union regulations on charges for cross-border euro payments has resulted in significant savings for consumers without leading to an increase in charges for domestic transfers.
Prior to the introduction of the EU rules, a E100 cross-border transfer would have cost on average E24. Now, the same transfer will cost on average E2.50, indicating a significant saving. In addition, the new rules have also provided banks with an incentive to develop and invest more in an EU-wide payments infrastructure, which in the longer term, has a view to reduce costs for all consumers.
This EU action has brought real benefits to consumers. The price of cross-border payments has reduced dramatically in many countries, but – contrary to what had been feared – the price of domestic payments has not gone up, commented internal market and services commissioner Charlie McCreevy. The banks’ reaction has been very positive – they have set up an ambitious project to create a single euro payments area (Sepa) that will treat all euro payments as though they were domestic. By using fully automated payment systems that are of lower cost, this project has enormous potential to bring about huge savings and we fully support it.