Sending money abroad from the UK is a common and often necessary task, whether you’re supporting family overseas, paying for international services, or buying property in another country. But how safe is it, and what rights and protections do you have?
In the UK, international money transfers are regulated by the Financial Conduct Authority (FCA), which serves as the country’s financial services regulator. Two key regulations govern sending and receiving international payments in the UK: the anti-money laundering (AML) regulations and the Funds Transfer Regulation (FTR).
Here, we explore what you need to know, and what you have the right to know, when sending money overseas.
Transparent fees and exchange rates
Before you make a transfer of funds, your provider must give you clear information about the full cost of the transaction. This is true for all providers, be it a bank, money transfer service company, or an app. Be sure you can clearly understand the exchange rate being applied, any transfer fees or service charges, and the amount that will arrive in the designated bank or account on the other side.
You have the right to see this information upfront before committing to the payment. Keep in mind that some providers can markup the exchange rate, so always compare rates and fees between multiple services. Exchange rates also vary depending on the day of the week and the time of day, so it’s worth researching the best time to send your money to find a good deal.
How long it will take
You also have a right to know the expected delivery time of your transfer. This can vary widely depending which provider you use, the amount you’re sending, the country you’re sending money to, and when you send it – so be sure to compare different routes if you need it there by a specific date.
Cancel or amend a payment
Your ability to cancel or amend an international payment typically depends on whether the money has been sent yet. If the transaction is still pending and hasn’t been processed, you may be able to cancel it for free – depending on the provider.
Once the money has been sent and converted into a different currency, cancellation becomes more difficult and may involve additional fees. Always check the provider’s terms and conditions for cancellation and amendment policies. Some may offer a cooling-off period or allow you to make changes within a certain time frame. If it’s stated in the provider’s policies, you have the right to challenge or complain about those procedures being denied or not followed.
Refund for unauthorised transactions
If money is sent internationally from your account without your permission, either through fraud or theft, you have the right to a full refund under UK law in most cases. Be sure to report the transaction within 13 months to your bank and ask directly for a refund. The only exceptions are where you’ve been negligent with your personal security details, such as by sharing your PIN or online banking login details, or if it was a result of a scam where you authorised the payment yourself.
This is known as authorised push payment fraud, and refund policies in this case vary by provider. Most major banks in the UK may offer refunds in some scam cases, especially if you’re considered to be a vulnerable person.
A smooth process
While it can be daunting to send money abroad for the first time, it should never feel like a gamble. Your consumer rights are there to protect your money, your data, and your peace of mind. So long as you always use an authorised service, read the fine print, ask the right questions about fees, delivery times, and cancellation policies, it should be a straightforward process. Remember, if something goes wrong, you do have the right to challenge it.
Please note: this is a contributed post.
