Transferring to United Kingdom IBAN


#1

I want to transfer to a UK account using their IBAN, when I go to transfer I don’t get IBAN/BIC options, just Account Number/Sort Code.

Is there going to be any option to use IBAN/BIC details in the future?


#2

You could try to deprive account no. / sort code from the IBAN? GB IBANS are made out of these underlaying numbers.


#3

Sounds like the perfect job for an algorithm built right into the app instead of something to push onto the user.


#4

Well, yes, but most U.K. banks and businesses don’t use IBANs that much, except for SEPA transfers. But since SEPA transfers are costly in the U.K., everybody uses the national standard instead. That’s an edge case.


#5

SEPA transfers are free as far as I’m aware, as instructed by EU directives. This extends to Switzerland and a few place like Monaco and San Marino who have deals with the EU. Of course The E in SEPA stands for Euro, so it only covers the euro and no other currency.

Edit: a bank can’t discriminate by country so if they charge for SEPA transfers they charge for every country, including their own!


#6

You’re right that in practice, SEPA credit transfers are free. But the EU legislation to which you refer, specifically Article 3(1) of Regulation (EC) No 924/2009, states “Charges levied by a payment service provider on a payment service user in respect of cross-border payments of up to EUR 50 000 shall be the same as the charges levied by that payment service provider on payment service users for corresponding national payments of the same value and in the same currency”. What this means is that banks have to charge for cross-border EUR payments at their price for domestic EUR payments. For banks in the Eurozone this in practice means zero or close to zero. But for banks in non-Eurozone countries like the UK, their charge for domestic EUR payments tends to be quite high, which means that they get away with high charges for cross-border EUR payments.

Absolutely right. An interesting point is that Sweden unilaterally extends the legislation to apply also to SEK. So a cross-border payment in EUR or SEK has to be charged at the same price as a domestic payment in SEK. It’s a shame that the UK never followed suit in relation to GBP charges.