When sending money internationally, the amount received can sometimes be lower than expected — even when the transfer fee and exchange rate seem clear. One common reason for this difference is intermediary bank fees.
Intermediary bank fees are charges applied by banks that help process international transfers between the sender’s bank and the recipient’s bank. These banks are often part of the global correspondent banking network used for cross-border payments.
Many banks do not have direct relationships with every bank worldwide. When a direct connection does not exist, the transfer passes through one or more intermediary banks. Each intermediary may deduct a fee for handling the transaction.
Intermediary bank fees are usually deducted from the transfer amount during processing, rather than charged upfront. As a result, senders may not see these fees clearly before initiating the transfer.
In some cases, neither the sending bank nor the receiving bank can predict the exact total of intermediary fees in advance.
International transfers often use one of three fee arrangements:
Even with an OUR option, some intermediary deductions may still occur, depending on the banks involved and the transfer route.
Intermediary bank fees reduce the final amount received, making it harder to estimate the true cost of a transfer in advance. This is why comparing international transfers based only on visible fees can be misleading.
To understand the real cost, it is important to consider:
Costoria focuses on this true cost perspective, helping users understand where money is lost during international transfers. A comparison and estimation tool (MVP) is currently under development.
This site is currently under construction.