Bank fees
Thread poster: Guy Bray

Guy Bray  Identity Verified
United States
Local time: 13:35
Member (2002)
French to English
Sep 27, 2010

I have recently experienced a questionable bank deduction from a wire transfer made by a UK agency - $20 off the top of a fee of less than $300. My bank (Chase) tells me that Barclays Bank in the UK was responsible; the agency states that it paid its local bank in full, and Barclays is telling the agency that Chase is to blame. This agency is almost my only UK client, and all my other international clients (France, Switzerland, Australia…) routinely pay in full (of course I still have to pay Chase’s local fees).
Are any other members experiencing such deductions from their UK wire transfers?
Thanks,
Guy


[Edited at 2010-09-27 20:19 GMT]


 

Guy Bray  Identity Verified
United States
Local time: 13:35
Member (2002)
French to English
TOPIC STARTER
Clarification Sep 27, 2010

I should perhaps add that I am not criticizing the agency- just bank fees. The agency and I are cooperating in trying to determine where the money was deducted, and bywhom.

Guy


 

Lingua 5B  Identity Verified
Bosnia and Herzegovina
Local time: 22:35
German to Serbian
+ ...
I can't see your opening post.. Sep 27, 2010

.. but I presume an unexpectedly large sum had been deducted off your wire transfer amount and you ended up with a much less amount ..

It's always possible that intermediary banks take their own fees ( which neither the sending nor the receiving bank can track or confirm, allegedly). It's very bizarre, I had such situations.


 

Kaspars Melkis  Identity Verified
United Kingdom
Local time: 21:35
Member (2005)
English to Latvian
+ ...
I believe that Chase deducted $20 from your incoming wire. Sep 28, 2010

In the US I had a free checking account at WaMu that was supposed to be free from all such fees. Yet, I got deducted $10 from each incoming international wire. This fee is hard to find but it is mentioned somewhere in the terms booklet. Most of customer support is not familiar with international transactions.

Then Wamu got absorbed by Chase and some fees were increased.


 

wsetters
Local time: 22:35
French to English
Not Barclays Sep 28, 2010

I would be very surprised if Barclay's were responsible. They certainly apply a charge - but it isn't removed from the sum sent but is an additional charge paid by the sender. You should still have received the full sum...

 

Rad Graban  Identity Verified
United Kingdom
Local time: 21:35
English to Slovak
+ ...
Agree with wsetters Sep 28, 2010

Not sure whom to blame though.
I'm pretty sure it's your bank (Chase) were the money went. However, Barclay's should have asked your agency if they were also paying fees applicable by receiving bank.
That's what happened to me when I wanted to send money by wire trasfer to Slovakia - there was about £30 fee on my end (Barclay's) and I was asked if I was willing to pay another £30 receiving bank's fee. Needless to say that I politely refused and found other way how to make the payment.


 

Katalin Horváth McClure  Identity Verified
United States
Local time: 16:35
Member (2002)
English to Hungarian
+ ...
Intermediary bank fees Sep 28, 2010

It is most likely a deduction an intermediary bank made along the way.
When the sender's bank and the recipient's bank does not have a direct relationship (the sender's bank does not have a giro account at the recepient's bank), they have to go through an intermediary bank (or more than one) to "make the connection". They take a fee for that. My experience is that this could be anywhere from $20 to $35. It is hard to track down, but the wire transfer record should say which bank was involved. On the credit statements I get from my bank, it appears below the block of info listing the Chips code, etc.

What is weird that even if money is being sent repeatedly from the same bank to the same receiving bank, the intermediary (and the fees they charge) can change, seemingly randomly. I am sure it is not "random", perhaps the pending wire transaction goes into some central depository queue that several intermediaries have access to, and whoever grabs it first, would execute it on its own terms, or something like that. (I am not sure about how this works, I just imagined it could be like that.)

I have a client where these deductions were sometimes zero, sometimes $20 and sometimes $25. The client claims they are wiring the money the same way every time and they have no control over what happens after they pay their bank. As far as I know, this is not entirely true, as it is possible to specify the intermediary's SWIFT code, to ensure the same intermediary is used every time. Obviously you'd want to pick the cheapest one.
However, there is still the question of who is going to pay the intermediary's fees. If your agreement with the client is that you receive the net amount and they are paying everything, than they have to specify it on the payment instruction, using "OUR" as the SWIFT instruction code, and not "SHA".
More reading material:

http://www.associatedcontent.com/article/954783/understanding_bank_wire_transfers_and.html?cat=3

http://www.globalmediapro.com/content/WhatAreBENSHAOURPaymentInstructions

I hope this explains.
Katalin


 

claude
Thailand
Local time: 22:35
English to French
there is no arguing here Sep 28, 2010

if your invoice states x dollars/euros, you should receive this amount. Being in France, I never had to pay any commission, whether my client is in Uk, Canada, or US. I think it is not the bank, but your client that you should blame, as he probably checked the wrong answer making the transfer so that you pay some commission. I never paid such commission wherever money comes from and that should be the rule. Though, the payments I received from US/Canada were through Paypal, but still, I did not pay any of the due charges.

 

Marcelina Haftka  Identity Verified
Poland
Local time: 22:35
Member (2006)
English to Polish
+ ...
It almost "normal" Sep 29, 2010

Guy, unfortunately it happens...

My first question is: what does it mean that have paid in full? Have they paid the amount due to you and the costs of sending the transfer? Have they also covered the costs of your wire transfer receipt?

As for international transfers you always have as least two fees to pay: one for sending the money and one for receiving the money. It's up to sender to declare who pay what - a Party can pay both fees, one fee or let the second Party bear all the charges.

The second issue was mentioned by Katalin - intermediary fees...
Do not forget that the UK is in the European Union, but they do not use the European currency, they hang on to their GBP. Now, it's possible that somewhere on its way to you the wire transfer was treated GBP>EUR>USD... It's like with credit cards - their currency is always EUR or USD, so if you go abroad (or even surf on the web) and pay with your card, your account is also charged with exchange rate fee.


 


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