AIB Paylink & making GBP Payments Online from Ireland...

HellFireClub

I've a supplier in the UK who I pay in Sterling each month, using the Paylink option on my iBB (Internet Business Banking).

I have an App on my iPhone (XE Currency), that tells me what the mid market rate is for converting Euro to GBP.

When I pay 1,000 Sterling to my supplier, according to my App above, this would cost me 1,140 Euro, but after making the payment through iBB, I discover that the charge to me in Euro is, 1,176 Euro.

So if I take the difference (which is obviously what the bank are making off this transaction), I get 36 Euro, which is over 3% of a charge (36 Euro/1176 Euro * 100) for this transaction, which I think is absolutely shít as things go.

Just wondering has anyone come up with a more efficient way of doing this??? The thoughts of AIB screwing me like this isn't nice at all and this is coming straight out of my bottom line obviously..

srsly78

Yes. Use an FX broker instead. All banks will just fleece you on FX. I won't link a broker here lest I be accused of shilling, there are many brokers to choose from.

My situation is the opposite from yours, my customer pays me in Sterling. I keep this in a UK STG account until I need to convert. I keep an eye on the market rate, and move it when it's good for me. I sent a big wad of cash home @ 1.16 last week. If I used a bank to do this I would only get 1.11 or even less.

HellFireClub

srsly78 wrote: »

Yes. Use an FX broker instead. All banks will just fleece you on FX. I won't link a broker here lest I be accused of shilling, there are many brokers to choose from.

My situation is the opposite from yours, my customer pays me in Sterling. I keep this in a UK STG account until I need to convert. I keep an eye on the market rate, and move it when it's good for me. I sent a big wad of cash home @ 1.16 last week. If I used a bank to do this I would only get 1.11 or even less.

I'm open to trying something along the lines of above, but if I were to open a STG account, given that all my incoming revenue is in Euro into an AIB Euro denominated A/C, how would I get around the conversion that obviously has to take place to transfer my Euro into GBP?

I can't get over the charges I got hit for today, 3% for an online payment to the UK, that's absolutely criminal I think.

srsly78

You don't need a STG bank account necessarily. The FX broker can take your euros, convert them, then spit out sterling into target account (your supplier). You can even tell the broker to sit on the money until a more favourable rate is reached. They make their money by aggregating all the fx trades together. They even put the money through instantly via CHAPS, without charging you the usual 20 quid fee.

I was quite surprised how easy and quick it was to setup with the broker. You need proof of identity and address, take pictures/scan passport etc as usual. Dunno what requirements are for company, I just set it up linked to my name. The broker is in the UK but they have no problems setting up an Irish customer (aside from the usual "what's your postcode?" confusion between uk and eire).
I'm gonna pm the website to you.

Tangled

I have a similar situation to you, large payment once a month to a UK supplier. Used to do it through IBB but switched to using Transfermate - Irish company, you call them and they give you a rate, if you choose to accept it they tell you the euro amount which you transfer to them using IBB, then they transfer the sterling amount to your suppliers account. No charges if amount is over €1,000 and same day delivery to UK account.

srsly78

Yep that sounds exactly like what the my broker does as well.

rainbowdash

Oanda.com have the tightest spreads of all so you get pretty much the mid market rate. Its $20 per transaction so not for small amounts. It can all be done online.