The introduction of the euro has had various implications for
businesses. Companies that trade goods or services with any of the countries in
the eurozone may be required to make payments in euros. It is important that
such businesses have procedures in place for these payments.
Open a euro account
One option is to set up a
euro currency account - all transactions are made in euros, and you receive
regular statements in euros. Most euro accounts will also offer you a
chequebook. This is an efficient way to reduce currency conversion costs while
earning interest on your deposits. This may also reduce currency exchange risks
as the payments backwards and forwards are kept in one currency.
Electronic transfer
The euro is like any other
currency in that payments can be made by electronic transfer; your bank will provide you with details of electronic transfer methods and of charges
levied for these services.
Check with your bank to see if they operate a direct credit payment
service which allows business clients to make regular payments to a euro
account, ask about any fees and charges for this service.
Banker's draft
You can also choose to make
payments using a banker's draft. This is not an ideal solution for businesses
making regular payments as the draft is sent through the post before being
banked into the beneficiary's account. If you rarely make euro payments, this
is a viable option, as it often attracts a lower charge than an electronic
transfer.
