In December, we wrote about PSD2 (the Second Payments Services Directive) and its importance in bringing fairness to finance.
Well, the UK Government just asked consumers for their views in a consultation, and they haven’t included any measures to make foreign currency transactions as transparent as same-currency transactions.
That means they’ve ignored the measures in PSD2 which say that consumers should know the “real costs and charges” of making a transaction.
The way the Government has drafted the legislation means banks and brokers can still hide costs in poor exchange rates, which are much lower than the mid-market rate you’d see on Google, XE.com or Reuters.
It’s time you had your say. You can respond to the Government by sending an email to PSD2consultation@HMTreasury.gsi.gov.uk or if you prefer you could write to:
[your story - eg I am a consumer living in the UK who regularly sends money from the UK to Germany].
It is essential that we consumers know the “real costs and charges” of making a foreign currency transaction as set out in the Payment Services Directive. Payment providers should use the real exchange rate - the one I can find easily on google, xe.com, or Reuters - so that we can know the actual cost of sending money abroad.
I hope you make foreign currency payments as transparent as same currency payments in the final Payment Services Regulations.
For more information, read our primer on PSD2.
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