The EU has proposed legislation that will make sending, spending, and receiving money around Europe cheaper and truly transparent but we need your help to push it over the line. Read below to understand more about what's happened and how you can join the fight.
Last week, the EU Commission announced groundbreaking consumer rights proposals that would make currency conversion cheaper and more transparent for people. If they pass, you'll finally be able to see the total cost of changing and sending your money abroad in one figure. Upfront. Before you make the transaction.
This is a huge win for all of us, but the dedicated campaigners who've pushed for transparency in finance for years should be particularly proud.
But these draft proposals are not yet real laws, and we need your help to make sure these amendments pass.
The Commission's proposals will build on the existing cross border payments regulations. These little-known regulations are the reason that all Europeans are able to pay in euros anywhere in and around the eurozone quickly, easily and for the same price as making a payment in their home country (as long as their home country is in the eurozone).
If they pass, these new amendments will have an immediate impact on the way you can spend your money in Europe outside of the eurozone.
The Commission's draft proposals would mean that all European consumers can see the total cost of changing, sending and spending money abroad upfront, in one clear figure. So if you pay by credit or debit card abroad, send money online using TransferWise – or make any other kind of transaction, payment or ATM withdrawal that requires you to use a different currency – you'll know how much it costs, upfront.
When you send or change money, the proposed changes would force the bank or currency exchange provider to tell you the total cost of making a currency conversion transaction upfront – including any markup they added to the exchange rate – as one single amount.
In short, every provider will have to price like TransferWise.
Why is this a big deal? Don't companies already have to do that?
No. We've been campaigning for years for a change in regulation that would require providers to disclose the markup they add to the exchange rate – as well as any fees – upfront and in one clear figure to their customers.
Right now, French banks and providers conceal in the exchange rate, on average, an additional charge of €23 for every €1,000 sent. These draft proposals would put a stop to this.
But there's still a chance that these proposals could be watered down, as they make their way through the EU's lengthy legislative process.
We need your help to make sure that doesn't happen.
Join us in the fight to make sure these draft proposals become real laws by signing up here (it only takes a minute!).
And if you're interested, you can read the proposals yourself here.