Is your bank ripping your business off with costly foreign exchange mark-ups?

How to avoid foreign exchange pitfalls for small and medium sized business | Business West

Since the largest banks in the UK, such as Barclays, Lloyds and HSBC, charge lower exchange rates, British companies that make regular payments abroad lose hundreds of pounds per transaction. HSBC calls itself the local bank of the world.

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Levying currency exchange surcharges, these surcharges are actually hidden fees paid overseas, which may be as high as hundreds of pounds. Except for Lloyd, there are none of the five largest business account providers in the UK, and their combined ratio is close to 90%. Cents of the market share of small and medium-sized enterprise banks, publicly disclosing these fees on their website before payment, some seem to hide these fees completely. -ups, especially now except for Norway, Iceland, Liechtenstein and Switzerland, 27 EU member states no longer allow customers to collect certain payments from customers abroad.

Payments to other countries, especially US dollar transactions, will still face a dizzying series of fees, but because of the unclear profit margins, they also face the problem of low exchange rates. Lloyds Bank describes their percentage fees, ranging from 2.6%. cents to 0.75%, depending on the amount transferred, such as The difference between the exchange rate of Lloyds Bank and the exchange rate at which we buy and sell currencies on the wholesale money market.

While this means that a company will save 520 pounds by sending 20,000 pounds abroad, it allows at least bank customers with 19% of the SME market to compare their interest rates before making transactions. However, other peoples rates are not so transparent.

NatWest stated on its website that “when a transaction requires foreign currency exchange, a margin will be applied”, but did not specify how much the margin may be.

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