Why is the arrival amount less than the remittance amount?

A number of factors may be involved in the reason why the amount of remittance received is less than the amount remitted. The following are some common reasons and their explanations:

1.Remittance handling fee
Remittance handling fee is one of the most common reasons. Handling fee can be incurred in the following links:

• Sending Bank Handling Fee: Handling fee charged by the remitting bank. Different banks and different remittance methods will have different charges.
• Transit Bank Handling Fee: If the remittance needs to go through one or more transit banks, the transit bank may charge a handling fee.
• Receiving Bank Handling Fee: The receiving bank may also charge a handling fee.

2.Exchange rate differences
Exchange rate differences may also affect the amount of money received. The remittance process may involve currency exchange, and different banks and financial institutions may use slightly different exchange rates:

• Sending bank exchange rate: The sending bank converts your currency into the recipient’s currency according to its exchange rate.
• Receiving bank exchange rate: The receiving bank converts the currency into the account currency according to its exchange rate.

3.Intermediary Bank Charges
Correspondent bank charges are fees that may be levied by a number of intermediary banks that the funds pass through during the international money transfer process. These charges are usually deducted directly from the remittance amount.

4.Wire transfer fees
Wire transfer fees are fees incurred when international remittances are made by wire transfer, and these fees include SWIFT wire transfer fees, among others.

5.Foreign Exchange Controls and Hidden Fees
Certain countries have strict controls on foreign exchange remittances and additional fees may be attached. In addition, some hidden costs may include banks’ exchange rate differences, processing fees, etc.

How to minimize remittance losses?

Choose the local remittance method according to the remittance amount and destination to avoid unnecessary fees. BiyaPay will match the local bank remittance and the bank will not charge or charge a small amount of handling fee, which can save the remittance cost.