Small Businesses Charged £4bn in Hidden EU Money Transfers
A new report claims 96% of bank revenues from foreign currency transactions are hidden from small business customers
UK banks charge small and medium sized businesses nearly £4bn in hidden EU transfer fees each year, a new study conducted by Accourt and commissioned by Money Mover has claimed.
The report, which surveyed six of the country’s biggest banks to find out the costs of making a euro transfer, alleges that 96% of bank revenues from foreign currency transactions are hidden from small business customers.
The report claims there is a lack of transparency between banks and small businesses with the average total transaction cost charged by a bank to a small business customer on a transfer of £75,000 being 2.43%, or £1,822.
Of this cost, £1,807 is based on the ‘spread’ – a margin added which is hidden from the customer.
Overall, small businesses will pay between 1.12% and 3.68% of the transfer amount due to this ‘spread’.
Money Mover CEO, Hamish Anderson, said:
“When it comes to international payments, it’s clear that the UK’s major banks are overcharging and underserving their small business customers. The UK’s banks are collectively failing to give small businesses the knowledge, transparency and visibility which they need to make an intelligent and informed decision’’.
‘’This lack of transparency is not only unfair and uncompetitive, it’s also costing the UK’s small businesses precious cash in unnecessary fees.”