What is an intermediary bank? Why some transfers arrive short
By SendPay Business · · 2 min read
An intermediary bank is a bank that sits between the sender's bank and the recipient's bank in an international transfer. It's needed when the two banks don't hold accounts with each other, so the payment is passed through one or more banks that do.
How a payment passes through
- Your bank sends the payment, usually over SWIFT.
- If your bank has no direct link with the recipient's bank, it sends the payment to an intermediary bank that does.
- The intermediary passes it on, sometimes through a second intermediary, until it reaches the recipient's bank.
Why transfers can arrive short
Each intermediary can take a fee straight out of the payment before passing it on. So the recipient may get less than you sent, even if you paid your own bank's fee. Choosing the option where you pay all charges (often called OUR) can help, but not every bank can guarantee it.
Reducing surprises
Ask the recipient for their bank's full details, including any intermediary bank their bank names. Use tracked payments where you can, and tell the recipient what fees may apply.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts and international transfers under your own brand, powered by licensed partners.
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Build my platform →Questions people ask
Who pays the charges on an international transfer?
See what you pay and what the recipient gets under OUR, SHA and BEN.
International transfer charges calculator →What does sending money abroad really cost?
Add up the fee and the rate markup.
Money transfer cost calculator →What is correspondent banking?
How banks hold accounts with each other to move money abroad.
Correspondent banking →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.