North has said that it was “disappointed” at a new EU rule requiring that, effective January 13th, all bank payments within the EU and EEA must have the charges applied to the relevant person in the transaction.
North P&I Club noted that it currently had a banking arrangement whereby the Club met the cost of making all of our payments, including those incurred on the beneficiary bank side. This, it said, allowed payments to be received in full and without deduction by beneficiaries.
However, as a result of the Second Payment Services Directive (“PSD2”) a change had been made to the regulations such that all bank payments within the EU and EEA must have the charges applied to the relevant person in the transaction. The change was effective from January 13th 2018. The Directive was intended to increase the integration and efficiency of the European payments market.
However, North observed that the effect of this change was that, whilst North would continue to meet its own costs of transmitting payments, it was now unable to meet beneficiaries’ costs of receiving payments. This cost would vary according to beneficiaries own banks’ charges and will reduce the amount received accordingly.
“We are disappointed to see this change which is mandated within the EU and EEA and is unavoidable”, said North, noting that “our payments to the rest of the world will be unaffected.”