Why is the received amount less than the remitted amount?

The reasons why the received amount is less than the remitted amount may include:

Bank fees:

When processing cross-border remittances, banks usually charge certain fees, including fees from the originating bank, intermediary bank, and receiving bank. These fees will be deducted from the remittance amount.

Currency conversion fees:

If the remittance involves currency conversion, the bank or remittance service provider may charge an exchange rate spread from the exchange rate. For example, the exchange rate used when remitting may be slightly different from the current market exchange rate, and this difference will also cause the received amount to decrease.

Intermediary bank fees:

Cross-border remittances usually need to be transferred through one or more intermediary banks. Each intermediary bank may charge processing fees, which will cause the final received amount to be less than the remitted amount.

Receiving bank fees:

When receiving foreign currency remittances, the receiving bank may charge deposit fees or foreign exchange conversion fees, which will also be deducted from the remittance amount.

Different remittance methods:

Different remittance methods (such as SWIFT, ACH, local bank transfer, etc.) may involve different fee structures, which may cause the final received amount to be different.

Taxes or other fees:

In some cases, the government may tax cross-border remittances, or the remittance platform may charge other management fees, which will be deducted from the remittance amount.