Fx
Correspondent banking & intermediary fees
Why a cross-border payment passes through banks you did not choose, and what that means for time and cost.
Why intermediaries exist
No bank holds an account with every other bank in the world. To pay a beneficiary at a bank it has no direct relationship with, your bank routes the payment through a correspondent — a bank that holds accounts (nostro/vostro) with both. In some currencies and countries a payment may hop through two or three correspondents before it arrives.
What this means for you
- Time — each hop adds a little time and a compliance check; most arrive same or next day, but exotic routes can take longer.
- Cost — each correspondent may deduct a fee (under SHA/BEN) or bill your bank (under OUR).
- Visibility — SWIFT gpi and the UETR let you see the full route and any deductions, so the chain is no longer a black box.
Reducing hops
Tip
Providing a correct beneficiary BIC — and an intermediary BIC when the portal asks for one — lets the payment take the most direct route. Vague or missing routing detail is what sends a payment on the scenic path with extra fees.
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About this guide
- Topic
- FX & cross-border
- Reading time
- 3 min
- Views
- 2,541
- Found helpful
- 96% (107/112)
- Updated
- 17 Jun 2026
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