Sending and receiving payments
Your guide to
Whether you live in the Channel Islands, the Isle of Man, the UK or overseas, you may,
at some time, need to send money to another country. It may be a gift for a relative
living overseas or you may need to provide emergency cash for a friend stranded
abroad. Perhaps you just want to buy something direct from a foreign country.
In these cases, Lloyds TSB can help you. We offer a comprehensive system of
international money transfer that will ensure your money is sent as quickly and
securely as possible.
We can also help you to make arrangements to receive funds from abroad. For
example, those living overseas may want to move money from a local bank to an
offshore account in the Islands.
Sending and Receiving Payments 1
The right choice
Before sending money overseas, you should consider:
• how quickly you want the money to reach the beneficiary (the receiver of the
• the cost to you of sending the money.
• whether you wish to enclose a letter or advice with the money.
• whether you want to send the money in foreign currency or in sterling.
We offer a number of different services, so that you will be able to select the one that
suits you best.
For example, if you wish to make a high value and/or urgent payment overseas, we may
recommend using our Express International Moneymover, the key features of which are
speed and security. However, if you need to send a lower value payment, such as a
birthday gift to a relative overseas, then perhaps you should consider an International
Draft or a Standard International Moneymover (if you know the account details).
Our charges and exchange rates vary for each service and the country involved - as will
the length of time it takes to complete a transaction. Our fees are charged when the
service is provided. Please refer to the enclosed Charges Guide to determine the costs
However, for most international services we work through our worldwide network of
correspondent banks, who will make a charge for the service they provide. The charges
can vary significantly according to the country. Any charges made by the correspondent
bank abroad will be advised on the day the transfer is made. We are happy to provide
guidance on this and on any other aspect of making or receiving international transfers.
2 Sending and Receiving Payments
There are two main types of payment method:
• Non-electronic - if you wish to send the payment by post with a covering letter or
advice (see International Drafts below).
• Electronic - if the payment is more urgent and/or you wish to send the payment via a
bank overseas (see International Moneymover services below).
Bank drafts can be drawn in most major currencies.
• An International Draft is a banker’s cheque made out to the beneficiary and payable
at one of our agent banks overseas.
• The Draft can either be sent direct to you so you can send it to the beneficiary, or we
can send it directly to the beneficiary.
International Moneymover services*
• Payments can be made in all major currencies to virtually any destination in the
• These are electronic bank-to-bank transfers of cleared funds. The money is available
to use as soon as it is credited to the beneficiary’s account.
• We are unable to confirm exactly when the beneficiary’s account will be credited
with the funds because overseas banks are involved.
• It may take longer for the funds to be credited if they are affected by events outside
our control such as war, civil unrest, natural disaster or industrial action.
* Please note since 1st January 2007 it has become mandatory for additional remitter information to be included on any payment you ask us to make to an
overseas bank. To avoid any unnecessary delays we will include your name, correspondence address and account number on any payments submitted to the
In addition, any payment to banks within the EU/EEA and Switzerland will no longer be accepted if it does not contain a valid BIC & IBAN number for the
Sending and Receiving Payments 3
We offer three types of moneymover services:
• Express International Moneymover
This is the fastest way to send non Euro funds overseas. Normally funds are received
in the beneficiary’s account within 3 working days. We would normally use this
method of payment unless otherwise instructed.
• Euro Moneymover
The service is for Euro payments and funds are normally received in the
beneficiary’s account within 3 working days.
International Bank Account numbers (IBANs) have been introduced to standardise
the identification of bank accounts in internatonal payment instructions. The reason
for this is to improve the quality of information involved in European cross-border
payments and reduce errors and delays.
The IBAN is not a new account number. Existing bank sorting code and account
numbers have not been replaced, but additionally IBAN numbers have been issued.
Not all IBANs will have the same number of characters. For example, UK IBANs
have 22 characters, while French IBANs have 27 characters. Further information
can be found on the APACS website: http://www.apacs.org.uk/
• Standard International Moneymover
For non-priority payments. Normally funds are received in the beneficiary’s account
within 3-5 working days.
International Standing Orders
As well as the above two services, you can also send a regular payment abroad by
setting up an international standing order. However, if you wish to amend or cancel this
standing order at any time, you will need to give instructions to your branch at least 3
days prior to the next payment date. These instructions should normally be given in
Recalling funds that you have sent
After the funds have been sent to an account overseas, it will not be possible to cancel
an International Moneymover payment. We can, however, ask the beneficiary’s bank to
seek the permission of the account holder for a refund.
4 Sending and Receiving Payments
As banks overseas generally offer a range of payment methods similar to our own, you
may receive a payment by a number of different ways, ranging from a cheque in the
post to a direct electronic bank transfer.
The following section explains how we can help you to manage incoming payments.
If you wish to receive your payment in a specific way, you should tell the person making
As with sending payments abroad, there are two main ways in which funds can be
• Non-electronic - where you receive cheques or bank drafts from overseas, either in
foreign currency or which are payable overseas (see cheque collection and cheque
negotiation on page 6).
• Electronic - direct electronic bank-to-bank transfer (see bank transfer on page 6).
Sending and Receiving Payments 5
If you receive a cheque drawn on an account overseas, there are two methods by
which we can ensure the funds are cleared and reach your account:
• Cheque collection
We accept the cheque and obtain clearance by sending it to the paying bank
overseas and collecting the cleared funds. We cannot credit your account until we
have received the money from them, which can take from a few days to over a
month depending on the bank and country involved. Banks overseas usually make a
charge for collecting cheques and this will be passed on to you in addition to our
• Cheque negotiation
This service is available subject to status. If you receive a cheque from overseas,
wherever possible we can buy it from you and credit the proceeds to your sterling
account immediately, or to a currency account after approximately 4-8 working
days. We do, however, retain the right to debit your account should the cheque
subsequently be returned unpaid, using the rate of exchange prevailing when we are
advised of non-payment. We are able to negotiate cheques payable in most
currencies and in most countries of the world.
Swift bank transfer
When we receive payments for you by direct electronic transfer from an overseas bank,
we are, in effect, acting as agents for that bank and are following their instructions. The
operating costs to the bank at both ends of an international transfer are quite high, so it
is necessary for the sender of the money to tell the sending bank who will pay for the
The usual options are:
• Sender pays the sending bank’s charges and you (the beneficiary) pay the receiving
bank’s charges (usually by deduction from the amount of the payment).
Additionally you must be aware that when requesting a payment to be sent to your
account with ourselves from an EU country it is compulsory for you to give the
remitter your BIC and IBAN numbers which can be found on the statements we
send you. Alternatively please contact us and we will be pleased to give you these
• Sender pays all the charges.
6 Sending and Receiving Payments
Sending funds to the UK
Payments can be made direct to a UK bank or building society
You can make payments direct to a UK bank or building society using a sterling cheque
drawn on your Island or WorldWide Service account. If you live in the Islands or the UK
simply make your payment at your local Lloyds TSB branch. If you’re abroad you can
send your cheque by post.
You can instruct us to use the Clearing House Automated Payment System (CHAPS),
which is an electronic bank-to-bank method of transfer. This makes the payment the
same day and can be used for payments to any bank or to most building societies in
the UK. However, there is a fee for using this service.
Receiving funds from the UK
Cheques drawn in sterling on a bank account with a clearing bank in the UK are
credited to a sterling account offshore free of charge.
Should you instruct your bankers to remit funds utilising the Clearing House Automated
Payment System (CHAPS) then your bankers will most probably levy a charge which
may be deducted from the amount you transfer. The sterling amount received is
credited to a sterling account free of charge.
Sending and Receiving Payments 7
If there is anything you are unclear about or would like our advice on the best method
for you to use, please call us.
8 Sending and Receiving Payments
Sending and Receiving Payments 9
Printed by Chartered Press Limited OB524 (May 2007)
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contained in the Isle of Man Banking Business (Compensation of Depositors) Regulations 1991.
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