Understanding and Resolving Frustrating Deductions in International Remittances
Have you ever faced unexpected deductions in your international money transfers, such as the infamous 15-20 USD being deducted by ICICI and SBI? You’re not alone. Many users wonder why these deductions occur and how to address them. This article aims to help you understand the process and steps you can take to resolve the issue.
One common issue many users face is the so-called Intermediary Bank Charge. This charge is an additional fee that can be deducted from your international money transfer. If you’ve experienced deductions like these, you’ve encountered this Intermediary Bank Charge.
The Intermediary Bank Charge Explained
The Intermediary Bank Charge is a fee that is typically applied to international money transfers that are routed through the SWIFT network. The SWIFT network is the de facto standard for transferring money internationally, also known as a Wire Transfer or Telegraphic Transfer. It’s a messaging system that facilitates the exchange of financial information between banks.
Introducing intermediary banks means that your funds are routed through multiple banks, each of which charges a small fee for handling the transaction. These fees accumulate to make up the Intermediary Bank Charge.
What is a SWIFT Transfer?
A SWIFT Transfer, also known as a Wire Transfer or Telegraphic Transfer, is a secure and standardized method of sending money internationally. It’s the preferred method for large and important transactions because it’s reliable and traceable.
Why Do Banks Deduct Such Fees?
As you might expect, banks have to earn money to cover their operations, which include providing services to customers. Therefore, they charge a minimum fee per transaction, and this fee can differ from one bank to another.
Steps to Resolve the Issue
1. Understand the Charges: Make sure you are aware of the charges that are associated with the transfer process. Typically, you should check the fee structure of the sending and receiving banks, as well as the intermediary banks.
2. Contact the Sending and Receiving Banks: If you’re not satisfied with the charges or if you want a breakdown of the fees, contact the relevant banks. They should be able to provide detailed information about the charges and fees.
3. Check the Transfer Process: Review the entire process of transferring money to identify any unnecessary intermediary steps that might be adding to the charges.
4. Choose an Alternative Transfer Method: If the fees are too high, consider alternative methods such as direct bank-to-bank transfers or using more cost-effective services like PayPal.
Conclusion
International money transfers can sometimes be frustrating due to unexpected deductions. However, understanding the process and the charges involved can help you make informed decisions and take appropriate action to minimize such deductions.
If you have any further queries or need assistance, feel free to reach out to your bank or consult the official Intermediary Bank Charge webpage for more guidance.