intermediary bank fee
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- How to read in Japanese: intermediary bank fee
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When sending money overseas, one of the fees incurred is an intermediary bank fee. Since international money transfers go through multiple banks, there are fees to be paid to intermediary banks.
In the case of domestic money transfers, money is exchanged between the bank that handled the transfer, the central bank in each country, and the bank that handled the receipt. However, in the case of overseas remittances, there is no central bank that can act as an intermediary between all banks. Therefore, the transfer is relayed to a bank that can handle international money transfers.
The amount of the relay bank fee is based on the number of banks that relayed the funds, so the fee may be more than that of two banks. Intermediary banks are also called correspondent banks, and funds can be transferred when a correspondent bank agreement is concluded between banks.