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Who bears the cost of Wire transfer?
Thread poster: Md Abu Alam

Md Abu Alam  Identity Verified
Bangladesh
Local time: 14:39
Member (2009)
English to Bengali
+ ...
Apr 10, 2012

I recently received a payment through wire transfer (from the USA to Bangladesh). The client sent me 850 USD, but I received much lower an amount. I now want to know two information:

1. Who bears the cost of a wire transfer as per standard practice?
2. How much is the cost for sending 850 USD from the USA to Bangladesh?

Abu Alam


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LisaniaMelendez  Identity Verified
Spain
Local time: 09:39
English to Spanish
+ ...
The client pays Apr 10, 2012

Hello Abu Alam:

I can only answer your first question. My experience has been that the client pays the cost of the wire transfer but this is one of those details you have to talk about before you sign a contract or start the translation.


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Md Abu Alam  Identity Verified
Bangladesh
Local time: 14:39
Member (2009)
English to Bengali
+ ...
TOPIC STARTER
Thank you very much. Apr 10, 2012

Thank you very much Lisania Melendez for your prompt reply.

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Sheila Wilson  Identity Verified
Spain
Local time: 08:39
Member (2007)
English
+ ...
Shared payment Apr 10, 2012

My experience has been that the client pays the issuing charges (i.e. their own bank's charges). The supplier (i.e. you and I) pays the receiving charges (charged by your own bank). Then there are occasionally some charges imposed by intermediaries - they are the ones that cause most of the problems.

Who pays what (including any intermediary charges) needs to be agreed in writing before the job is accepted.

Sheila


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Md Abu Alam  Identity Verified
Bangladesh
Local time: 14:39
Member (2009)
English to Bengali
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TOPIC STARTER
Thanks Sheila Apr 10, 2012

Thanks Sheila for the details.

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Samuel Murray  Identity Verified
Netherlands
Local time: 09:39
Member (2006)
English to Afrikaans
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Both parties pay something Apr 10, 2012

Md Abu Alam wrote:
I recently received a payment through wire transfer (from the USA to Bangladesh). The client sent me 850 USD, but I received much lower an amount. I now want to know two information:

1. Who bears the cost of a wire transfer as per standard practice?
2. How much is the cost for sending 850 USD from the USA to Bangladesh?


It is impossible to determine what the cost of the transfer would be. The client would have to pay his bank something (the bank won't perform the transaction unless the client pays it), and the translator would have to pay something (he has to pay his own bank, and his bank will also charge him for intermediary bank charges).

However, the amount that is sent by the client should be the full invoiced amount. In other words, the client can't pay his own bank's charges by deducting it from the invoiced amount.

If for example his bank charges him USD 75 for a transfer, then he has to transfer the full USD 850 (and pay the USD 75 out of his own pocket). If he transfers only USD 775 (i.e if he deducted the USD 75 from of the invoiced), then he still owes you USD 75 on that invoice. Note that this is not a universal rule -- the client may well believe that all bank charges should be paid by the recipient.

Your bank will also charge you a fee (or fees) (and the client has no way of knowing how much those fees are), and you are responsible for paying it. Have a look at your bank's web site and search for "SWIFT" transaction fees.


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Magali GUENETTE
France
Local time: 09:39
English to French
+ ...
Client pays for financial charges Apr 10, 2012

But you have to specify it on the quote and invoice so that the client instructs his bank to do so. (Just as when you send away for some goods, transportation fees are indicated for instance).

Of course you can decide that you pay the financial/change charges... but in that case, you'd better calculate how much that would be and arrange your price so as not to loose to much. Especially if you receive small wired amounts. Some charges can amount to more than the invoice price. Not good either for you or the client.

Mac2


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Md Abu Alam  Identity Verified
Bangladesh
Local time: 14:39
Member (2009)
English to Bengali
+ ...
TOPIC STARTER
Thank you both. Apr 10, 2012

Thank you Samuel and Magali. I really could know a lot from you.

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2G Trad  Identity Verified
Italy
Local time: 09:39
Member (2000)
English to Italian
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Intermediaries... Apr 10, 2012

Sheila Wilson:
Then there are occasionally some charges imposed by intermediaries - they are the ones that cause most of the problems.


Quote.

Intermediary bank fees are unpredictable and you can see them only upon receiving money.

You should agree some kind of compensation with your client (eg. slightly raise your standard rate or apply an extra charge in your invoice).

Cheers
Gianni


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Nicole Schnell  Identity Verified
United States
Local time: 00:39
English to German
+ ...
The cost for sending international wire transfers Apr 10, 2012

is US $ 38.00 at my bank (JPMorgan Chase). Such costs are covered by the payer / sender at all times, otherwise the wire transfer can not be initiated.

The payee might be charged additional fees by his own bank, e.g. a fee for incoming wire transfers. Such fees are the responsibility of the payee.


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Hipyan Nopri  Identity Verified
Indonesia
Local time: 15:39
English to Indonesian
+ ...
Wire Transfer Fee Apr 10, 2012

Md Abu Alam wrote:
1. Who bears the cost of a wire transfer as per standard practice?

In my experience, the client usually pays the fee. However, you should discuss this with your potential client before accepting the assignment.

Md Abu Alam wrote:
2. How much is the cost for sending 850 USD from the USA to Bangladesh?

It is about US$35-40.

Best Regards

Hipyan


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Radian Yazynin  Identity Verified
Local time: 11:39
Member (2004)
English to Russian
+ ...
My terms vary Apr 10, 2012

In some cases I receive payments on terms SHA (shared fees) and still get paid precisely as billed, with no deductions. In some other cases I ask to cover all bank fees and pay me on terms "all bank fees at payor's expense", if in doubt. But even in the latter case an intermediary may ignore this and deduct extra (my bank has never charged something for receipt of funds) - it's over the top...

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Nicole Schnell  Identity Verified
United States
Local time: 00:39
English to German
+ ...
This is not possible Apr 10, 2012

Radian Yazynin wrote:
In some other cases I ask to cover all bank fees and pay me on terms "all bank fees at payor's expense", if in doubt.


No payer knows how much your bank is going to charge in your country and nobody knows in advance what currency exchange is going to be expected at a particular date. Any banking fees and expenses on the payee's side are called overhead and should be integrated in the translator's pricing. Please do not blame outsourcers for your personal fees. Whenever a net amount is sent from the US via wire transfer, the bank fees are already paid, and you have no idea how we have to bite our teeth and shrink our check books when a translator insists on his 50 dollar to be paid via 24 hour international wire transfer. Nobody is trying to rip you off.


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Radian Yazynin  Identity Verified
Local time: 11:39
Member (2004)
English to Russian
+ ...
A bit different situation Apr 10, 2012

Nicole Schnell wrote:
Nobody is trying to rip you off.

The two cases I mentioned - with all bank fees already paid "till destination point" (from UK), one of the estimated German banks deducted some extra, but after an investigation, they compensated for it. And, for me personally, it's not an issue of currency conversion - I receive in USD and Euros alright.


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Radian Yazynin  Identity Verified
Local time: 11:39
Member (2004)
English to Russian
+ ...
And what's more Apr 10, 2012

In that very case - all bank fees - I provide a certain reduction in invoices, not just insisting, you know. All are happy!

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