The European Commission has announced the release of a proposal that would make euro payments cheaper for consumers.
According to European officials, if adopted, the proposal will have an impact on money transfers both between a euro and a non-euro country, and between two non-Eurozone EU countries. Under the proposed changes, Brussels will extend the existing regulation on cross-border payment fees to all transactions made in the EU’s currency.
The proposal states that fees charged for cross-border payments in euro are the same that would be charged for equivalent domestic payments in the local currency. This is expected to bring down fees to a few euro or even cents.
The Commission will also propose rules that will provide more transparency on “dynamic currency conversion” — the practice of offering consumers traveling abroad the option of paying for purchases in their home currency.