An international wire can cost more than the fee quoted by the sending bank. The final payment may include sender bank fees, intermediary or correspondent bank deductions, recipient bank charges, and foreign exchange spread. This guide explains what each cost covers and why the recipient can receive less than the amount sent.
What fees do you pay for an international wire transfer?
International wire transfers can include several different charges. Your sending bank may charge an upfront fee, intermediary banks may deduct fees during routing, and the receiving bank may charge a fee before crediting the final amount.
1. Sending bank fee
The sending bank fee is usually the most visible charge. It may be shown before you submit the transfer, but it does not always include intermediary or receiving bank deductions.
2. Intermediary and correspondent bank fees
Intermediary banks help route international payments between banks and countries. These fees can be deducted from the transfer amount while the money is in transit, which is why the recipient may receive less than expected.
3. Receiving bank fee
Some receiving banks charge a fee when an international wire arrives. This fee may be deducted before the money is credited to the recipient account.
4. Foreign exchange spread
If your transfer involves currency conversion, the bank may apply an exchange rate that includes a spread. This can reduce the final amount received, even if the visible wire fee looks low.
Why can the recipient receive less than the amount sent?
The final received amount can be lower because of intermediary deductions, receiving bank fees, or currency conversion spread. These costs are not always visible at the time the transfer is sent.
Visible Fees vs Possible Deductions
| Visible Fees | Possible Deductions |
|---|---|
| Sending bank fee | Intermediary bank fee |
| Quoted exchange rate | FX spread impact |
| Known transfer charge | Receiving bank fee |
| Amount sent | Amount recipient may receive |
International wire transfer fees can include more than the upfront sending charge. Route, currency, and intermediary bank deductions can affect how much the recipient actually receives.
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FAQ
Who charges international wire transfer fees?
Fees may be charged by the sending bank, intermediary banks, and receiving bank. Currency conversion can also include a spread.
Why are some international wire fees hidden?
Intermediary fees are often deducted while the transfer is being routed, so they may not be visible upfront.
Can I avoid intermediary bank fees?
Not always. Some routes require intermediary banks. Choosing banks with strong correspondent relationships can sometimes reduce the likelihood of extra deductions.