Cross-border payments in euros
This Regulation provides that the charges levied on payments in euros between bank accounts in different Member States must not be higher than those levied on payments in euros within a Member State. Transactions by debit card and withdrawals from ATMs are also covered by the Regulation.
Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro.
This Regulation is designed to put charges for cross-border payments in euros on the same footing as those for payments in that currency within a Member State. It sets a maximum amount of €50 000 and does not apply to cross-border payments between institutions for their own account.
Reducing costs and making cross-border payments easier for citizens
Cross-border payments comprise:
- cross-border credit transfers: Transactions carried out by the originator via an institution in one Member State, in order to place a sum of money at the disposal of a beneficiary in the latter’s institution in another Member State (the originator and the beneficiary may be the same person);
- cross-border electronic payment transactions: Cross-border funds transfers effected by an electronic payment method or cash withdrawals;
- cross-border cheques: paper cheques.
An institution must make available to its customers in a readily comprehensible form, in writing and, where appropriate, by electronic means, prior information on the charges levied in respect of: cross-border payments, payments transacted within the Member State in which it is located and the exchange of currencies into and from euros.
Any change in the charges must be notified in advance of the date of application.
Facilitating cross-border transfers: IBAN number and BIC code
Institutions must notify customers on request of their International Bank Account Number (IBAN) and the institution’s Bank Identifier Code (BIC). In order to pay only the charges that apply to domestic transfers, customers are required to indicate the IBAN of the beneficiary and the BIC of the beneficiary’s institution.
Applying the Regulation to Member States outside the euro zone
This Regulation also applies to cross-border payments made in the currency of another Member State, once the latter has notified the Commission that it has decided to extend the Regulation’s application to its currency. To date, only the Swedish authorities have asked for the Regulation’s application to be extended to their currency, the Swedish krona. This means that cross-border payments within the European Union (EU) in Swedish kroner are covered by the Regulation in the same way as payments in euros. (For more information, please consult the document explaining the practical implications of Article 9 of the Regulation (pdf )).
This Regulation also applies to cross-border transfers to accounts in euros even if they have been opened in an EU country outside the euro zone, such as the United Kingdom.
|Act||Entry into force||Transposition in the Member States||Official Journal|
|Regulation (EC) No 2560/2001||
OJ L 344 of 28.12.2001