Why is the amount received less than the amount remitted?

The reason why the amount received is less than the amount remitted may involve multiple factors. Here are some common reasons and explanations:

Remittance Fees

Remittance fees are one of the most common reasons. Fees can be generated at the following stages:

Sending bank fee: The fee charged by the remitting bank. Different banks and different remittance methods have different charging standards.

Intermediary bank fee: If the remittance needs to pass through one or more intermediary banks, the intermediary banks may charge fees.

Receiving bank fee: The receiving bank may also charge certain fees.

Exchange Rate Differences

Exchange rate differences will also affect the amount received. The remittance process may involve currency conversion, and the exchange rates used by different banks and financial institutions may vary slightly:

Sending bank exchange rate: The remitting bank converts your currency to the recipient's currency at its exchange rate.

Receiving bank exchange rate: The receiving bank converts the currency to the account currency at its exchange rate.

Correspondent Bank Charges

Correspondent bank charges refer to the fees that may be charged by multiple intermediary banks during the international remittance process. These fees are usually deducted directly from the remittance amount.

Wire Transfer Fees

Wire transfer fees refer to the fees generated when conducting international remittances through wire transfer, including SWIFT wire transfer fees, etc.

Foreign Exchange Control and Hidden Fees

Some countries have strict controls on foreign exchange remittances, which may impose additional fees. In addition, some hidden fees may include bank exchange rate differences, processing fees, etc.

How to Reduce Remittance Losses

Choose local remittance methods based on the remittance amount and destination to avoid unnecessary fees. BiyaPay will match local bank remittances, where banks charge little or no fees, which can save remittance costs.