2 questions on foreign salary payment :)


#1

I am from the UK and have a UK bank account, which my Norwegian employer currently pays into. The money is sent in NOK and converted to GBP by my bank. I am considering switching the bank account that my employer pays into to my Revolut account.

As far as I understand, I would receive the money in NOK and it would then be up to me to exchange it to GBP and transfer to my UK bank account. My hope is that by doing this, I will get a better exchange rate.

I have two questions.

  1. Is there any reason why this wouldn’t be a good idea? any hidden costs or risks etc.
  2. Is there any prep I need to do with my Revolut account to ensure this goes okay? (I have already requested an increased daily and annual limit be submitting the requested documents and I have converted 1GBP to NOK just so my account includes and can hopefully receive NOK)

Appreciate any help

Cheers


#2

Hey @4ze :slight_smile:

The :r: NOK account is not a personal one but a pooled one. For NOK payments to be assigned to your account, they need to have a special reference code and they would show in your account as NOK. You can convert that to GBP at a fantastic rate, yes, but that’s a risky idea because…

  • NOK tranfers are not SEPA, but SWIFT. :r: will not charge you for it but intermediary banks or sending banks might.
  • NOK accounts are not personals and many problems might arise therefore

:wink:


#4

Hello @Juliopp

So I resume that receiving a NOK to an EUR or GB account is the best way, isn’t it? I am in the same case that I receive a NOK for my salary. Thanks in advance.


#5

If you send NOK to your EUR account then it might get exchanged automatically. If it does that then you will not get the interbank exchange rate that Revolut uses but instead get the exchange rate from the partner bank Revolut uses.


#6

Or it might bounce back. I am not certain, but it says in the app that the account details as shown under “EUR local” only accepts SEPA payments.

(There is no clear definition here what Revolut understands as SEPA. There are two sides: the regulatory framework and the technical framework. Under the regulatory framework, only EUR transfers qualify as SEPA transfers. But the technical framework that defines all technical aspects of the transfer supports all other local currencies of SEPA countries. That means basically that all the rules only apply for EUR, but banks use the same system for other currencies as well to streamline their transfer business.)