Consumers travelling across Europe will no longer be surcharged for withdrawing cash and making card payments in euros in other EU member states, under new EU regulations set to come into force Monday.
The EU Cross-Border Payments Regulation, effective from 1 July 2002, stipulates that consumers should pay no more to withdraw euros from cash machines or make card payments in euros in other EU Member States than they pay for the same services in the country where they live. It aims to create a single payments area so that citizens and businesses can take full advantage of the single currency across the EU.
At present, customers withdrawing EUR100 from a cash machine outside their own member state costs bank are charged an average of EUR4, while domestic withdrawals and payments are usually either free or cost a few cents.
Frits Bolkestein, internal market commissioner, comments: "This regulation adds a new dimension to the internal market, and in particular makes it easier and cheaper for people travelling to other member states."
In July 2003, the same principle will also be applied to charges for national and cross-border transactions in euros for credit transfers between bank accounts. In 2001, the average charge for a cross-border transfer of EUR100 between banks in EU member states was EUR24.