Intermediate Banks - Can't leave with them, Can't leave without them?


#1

This week I’ve made an international transfer (SWIFT) to a EUR account in a country outside EU. To my surprise, the amount received was exactly 15 EUR less.
Revolut says they don’t charge a fee for outgoing payments. The receiving bank says they don’t charge a fee for incoming payments. So, the only party remaining is the Intermediate Bank, but I could’t find much information any further.

Now that I’ve lost 15 EUR, I wonder how can I avoid it in future? There is still no transparancy with the Intermediate Banks, so we still have no guarantee that the money transfers will be free.

I have mixed feelings about using Revolut for future SWIFT transfers…:thinking:
Does anybody have a similar experience?


#2

In no world would SWIFT transfers be free, they’re very expensive in terms of intermediary bank charges.

The cheapest fee I’ve ever had for SWIFT is $25 so, I’d be extremely happy with 15 euro.

Revolut has no power to monitor or affect the charges made by banks and it shouldn’t be expected to. Fair warning is given and also a general outline of usual charges is provided in multiple currencies.

35 AUD
20 CAD
50 AED
16-32 EUR (outside of SEPA)
7500 JPY
35 NZD
20-40 USD


#3

Did you make this transfer in a currency that is different than the one in your recipient bank?

I always thought intermediary bank is only if the bank cannot process itself the transfer because of unsupported currency.

My banks (1 sepa and 1 none sepa) never charge me intermediary fee both for inbound and outbound transfers as long as I do it in the right currency.


#4

No, international transfers like SWIFT often use intermediary banks.

Technically, even a SEPA transfer uses a couple of intermediary banks for the actual settlement. They just can’t charge you for it.


#5

No, both the sending and receiving bank accounts were in EUR.
I’m thinking that such fees depend on the amount sent: charge certain percentage above certain amounts.


#6

Could be a percentage. Could be a fixed handling fee. Hard to tell.


#7

Well, what bothers me is that I can’t see what that handling fee structure is that the intermediary bank is using.


#8

I know. And you should write intermediary banks. Can be more than one. It depends on business relations and infrastructure of the banks involved. It is worse than you thought. :confused: