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Personal Finances
Travel & Overseas Payments Jargon Buster

We've made it easy to understand the terms used in this site. Look below for simple explanations.

Glossary

Bank to bank electronic links Where payment instructions are sent by electronic messaging systems between banks e.g. SWIFT.
BIC address This is a code which is used by banks throughout the world to identify a bank and its individual branches based abroad. It is mainly used for making international payments and works like UK branch sort codes.
Cirrus Cirrus is a debit card facility which allows you to withdraw money in local currency in a number of different countries throughout the world
Currency equivalent When money is being transferred overseas a currency conversion normally has to be carried out. This has to be done either by the bank making the transfer or by the bank receiving the money. If the original amount is in sterling, the currency equivalent is the amount in foreign currency once the conversion has taken place.
Drafts These are paper-based payments which are normally ordered from the Bank in advance and sent overseas by post.
Euro The euro is now the only legal tender in those countries participating in EMU: Austria; Belgium; Finland; France; Germany; Greece; Republic of Ireland; Italy; Luxembourg; the Netherlands; Portugal; Spain. Customers travelling to these countries should now order euro notes and/or Travellers Cheques.

The old national currencies have now been officially withdrawn. However it will usually be possible to send notes and travellers cheques in the old currencies (sometimes called 'legacy currencies') for collection from your branch. This process could take several days and additional charges may be incurred.

For an extended period, charity collection boxes are available in all branches for the donation of any notes or coins, with proceeds going to Save the Children.
Foreign currency This is the money in general use in a country outside the UK. Examples include United States dollar, Japanese Yen, Swiss franc and euro. At the Royal Bank, it is possible to exchange pounds sterling for these foreign currencies. The amount you get in return for each pound sterling can change daily and is determined by foreign exchange markets.
Local currency of the country on which it is drawn It is always best to have a draft or cheque made out in the local currency of the drawing (i.e. paying) bank's country e.g. US dollars payable in the US. If you are purchasing a draft from the Royal Bank we will select the drawing bank for you and this will be printed on the draft itself; if you are receiving a draft from abroad, ask the remitter to ensure that it is made out in sterling and is drawn on a UK bank if possible.
Maestro Maestro is an international debit card facility which allows you to withdraw money in local currency throughout the world at ATM's as well as Pay for goods and services at overseas retailers, wherever the Maestro logo is displayed.
Remitter's bank This is the bank which the person sending you the money has asked to make the international payment.
SWIFT Swift stands for Society for Worldwide Interbank Financial Telecommunication. It provides a financial message communications service among banks in over 120 countries. These banks use it, among other things, to make international payments.
Value Date This is the date when funds are made available to the bank which is being used to make payment to the beneficiary. Depending on local practice, the beneficiary will not necessarily receive the funds on this date, but in such cases should do so within a few days.

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