What is correspondent banking? How money crosses borders between banks
By SendPay Business · · 2 min read
Correspondent banking is the network of relationships banks use to make payments in countries and currencies where they don't operate themselves. A bank that needs to pay someone abroad asks a partner bank there, its correspondent, to make the payment for it.
How it works
- Your bank receives your instruction to pay someone abroad.
- It sends a payment message, often over SWIFT, to its correspondent bank.
- If the correspondent doesn't deal directly with the payee's bank, it passes the payment to another bank.
- The payee's bank receives the money and credits the account.
Why it can be slow and costly
Each bank in the chain may check the payment and take a fee, and different time zones and cut-off times add delays. That's why the amount that arrives can be less than expected, and why some transfers take days.
How newer providers differ
Many money transfer apps hold money in each country they serve and pay out locally, so most transfers never travel the full correspondent chain. That's often how they offer lower fees and faster payments.
Where SendPay fits
SendPay Transfer platforms let you launch a money transfer app under your own brand, powered by licensed partners. It is free to design and preview, and you only pay when you publish. SendPay tells you in writing which licences apply to your platform before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
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 is a nostro account?
The account a bank holds with its correspondent abroad.
What is a nostro account? →What is a SWIFT code?
The code that identifies a bank in international payments.
What is a SWIFT code? →How much does a transfer really cost?
The free calculator adds the fee and the rate markup.
Money transfer cost calculator →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.