FCA looks at good and poor practice in international payment pricing transparency

The FCA’s latest Consumer Duty review has looked at good and poor practices in how firms communicate the cost of international payments.

It reviewed websites of various payment firms, looking at whether their communications made pricing information clear before a transfer was initiated. It looked specifically at whether firms provided information on:

• the amount to be remitted in sterling
• the exchange rate that would be used
• the amount the recipient would receive in local currency
• the mark up above the benchmark reference rate
• any variable fees
• any fixed fee for the transaction and
• the total remittance fees.

It found that some firms displayed these clearly, but a number did not always clearly display transaction or additional fees or make it clear that fees could vary, and sometimes it was not easy for customers to find relevant information. The review gives examples of what the FCA likes, and what it doesn’t.