Sterling goods purchase lowest cost fees

berini

Registered User
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10
Hello, when my Limited Company purchase goods from UK suppliers I pay the suppliers using my personal AIB Debit card, a recent invoice paid 18th Sept for £231 cost €299.39 this is 29% difference, I just searched and found a company "TransferWise" which claims to have lower cost fees i.e 0.5% they claim bank charge is 5%. Anyone use this company for business use as they seem to be geared to private individuals? Any others offering a similar lower cost service with would offer an instant transfer of the funds to the suppliers.
 
The rate today is 1.27 euro. So even if the bank charged you mid market rate and no fees, £231 would cost you €293.37

So you have paid about €6 or 2% for the service. Seems ok to me for an occasional small invoice.


If you are paying larger sums or paying small sums regularly, check out this thread:

The best way to transfer large amounts in euro to and from other currencies

You should consider opening a sterling account in Ulster Bank in Newry. Then you can pay your creditors directly, online, without any need for a third party.

If you have any sterling income, you can lodge it to that account. If you don't, you can just transfer money from your euro account to your sterling account from time to time, using Transfermate or any of the other services.

Brendan
 
I think a lot of people make the error of seeing a rate of 0.78 and thinking the difference is 22c.

But it is 22p over 78p, not 22p over £1.

To do the % calculation you divide 100 by the exchange rate which in above example = 1.2808 (add 28.08% to 78 and you get 100)

Basically, if something is costing you £1 stg, the euro cost at mid market rate is currently about €1.28 euro.

For small transfers, debit credit cards will be as good as any transfer service.
 
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