T/T intermediary bank fees

T/T intermediary bank fees

Sometimes, we found the money which we received less than customers' "T/T amount". The situation is not always come up except the following T/T operations: when customers' location is in small town, or currency is not USD, usually will be charged by intermediary bank about 10-25 USD. It's not much, however it bring much trouble to us. Especially customer didn't be told by their bank that the intermediary bank will charge fees.

following is an example Question and answer:
How can I find out about international wire transfer fees?
I recently sent some money from overseas to the U.S. I paid commission and wire transfer fee at the originating bank overseas. I sent the money to the U.S. bank which I knew does not charge incoming wire transfer fees. When I received the money, the amount was smaller than what I sent from overseas. When I inquired my bank (the receiving bank), I was told that they did not charge a fee, but an intermediary bank probably did. Later, when I needed to have another transfer made, I asked another bank and its intermediary bank how much they charge for incoming international wire transfer. The bank that I have my account at said they charge 10USD. The intermediary bank said that international wire transfers go through many financial institutions before coming into their bank, and they cannot tell me how much will be charged. How is this possible - and why is it tolerated that you cannot tell how much fees will be charged before sending the money? Is there a way to find out?
 
Answer :
You need to find out how much the sending bank overseas sent and how much you actually received when it finally got to your account here in the states. Many sending banks don't know what they are talking about. Foreign banks send "Swift" Payment orders to their corresponding banks in the U.S.. They in turn will send the payment via fed to your bank. What you don't know is how the foreign bank's account is set up with the corresponding bank and with what terms. If you received $10, $25 or $35 less than what was originally sent, then this is called the "Bene deduct fee". 

For Example..
Barclays Bank in London has sent a Swift Payment order for $500 to be sent to your account held at Citibank. Barclays in London naturally will send it to their U.S. Correspondent in New York- which is Barclays Plc (New York). New York will act on the instructions sent by London with no alterations what-so-ever. But what is important is to realize is how the account (terms) of Barclays-London is set up with Barclays-New York. 
There is a field on the MT 103 Swift payment order instructions. Each field is indentified with a number- example Line 20 or line 59 or line 70. Lines 57 and 59 are usually the beneficiary field info- on the swift. I do not know the number field for "Details of Charges" but if Barclays-London left that field blank, then the Corresponding bank- Barclays-New York will indeed take the "Bene decuct fee" out. - Again, I don't know what the amount of the bene deduct fee is. - And for corresponding banks, the fee varies. 

On the swift the "Details of Charges" field will look like this....
1)Details of Charges- "OUR"
2)Details of Charges-" Ben"
3)Details of Charges- sometimes this field will be left blank by the sending bank.
OUR means that the sending bank is advising the corresponding bank not to take an additional fee
BEN means that the sending bank is advising the corresponding bank to take an additional fee
LEAVING THE FIELD BLANK- means the corresponding bank will take a fee regardless.
Believe it or not. This is just a simple example of how a Swift Payment order works. If fees are taken out, then its the sending bank's fault. They are or are not advising their correspondents of the bene deduct fee. 
Since calling the corresponding/intermediary bank is a lost cause (because you are not their customer) the best thing to do is have you local bank here in the United States call their wire department and see if the representative from the wire department will call the corresponding bank. Usually (not always) the corresponding bank will tell them- yes there was a $25 bene deduct fee taken out.
Unfortunately, you have no control over these fees.We also do not know if you bank will charge an intermediary fee, for this you will need to ask your bank first before using T/T bank wire transfer method
.