Ulster Bank is to check that all its branches are applying the new foreign exchange commission charges correctly following a complaint from a customer who paid more this week for a regular transfer of pounds to Holland than he did before the introduction of the euro.

While the transfer did not involve the changing of the pounds into Dutch guilders, the customer was charged the new foreign exchange commission rates. The result was a commission charge of £49.66 on a transfer of £9,934 on January 4th, compared with commission of £19.99 on the transfer of £10,000 on December 15th 1998. Ulster Bank's regional director, Mr Richard Boucher, said the branch involved had made an error and the customer involved would be compensated. Ulster will now check the methods used by all of its branches to transfer funds to euro area destinations, he added.

The transaction involved was a regular payment in pounds by the Dublin-based company Grooms Flowers to a Dutch supplier of flowers. Since the supplier billed in pounds and accepted pounds in payment, no foreign exchange transaction was involved in the transfer of the funds to Holland.

Therefore, no foreign exchange commission should have been charged. When Mr Negley Groom questioned the higher charge, the branch insisted it was correct, he said. Mr Boucher explained that the correct charge for the transaction should have been 0.2 per cent of the amount involved with a minimum charge of £10 and a maximum charge of £35. On the £9,934 involved the transfer charge should have been £19.87.