What is an intermediary bank?
An intermediary bank is a bank that sits in the middle of an international wire, passing the payment from the sending bank to the beneficiary's bank because those two banks do not hold accounts with each other. It can deduct its own fee from the amount before passing it on. Example (invented, for illustration only): a US importer sends $10,000 to a supplier's bank in Colombia with shared charges; the payment passes through the Colombian bank's US correspondent, which deducts $25, so $9,975 reaches the supplier's bank before its own receiving fee.
- An intermediary bank is needed when the sending and receiving banks have no account with each other in the payment's currency.
- In an October 2026 sample of 5,527 US dollar payments measured by Ohmyfin, 1,901 arrived short, with a median deduction of $26.76.
- In the same sample, 68 of 72 US dollar payments sent with shared charges arrived short, against 7 of 151 sent with OUR.
- In the Swift MT103 message, field 56a names the intermediary institution and field 71F records charges a bank deducted.
How an intermediary bank works
To pay out in a currency, a bank needs an account in that currency's banking system. When the sending bank and the beneficiary's bank share no such account, a third bank that both can reach passes the payment along. That third bank is the intermediary, often in the currency's home country: for US dollars, usually a bank in the United States.
Each intermediary can charge for the service, usually as a flat amount taken from the payment in transit. The sender does not choose the banks in the chain, and each bank sets its own fee, which is why the deduction is hard to predict.
| Measure | US dollar payments |
|---|---|
| Payments analyzed | 5,527 |
| Arrived short by $1 or more | 1,901 |
| Median deduction on short payments | $26.76 |
| Most common deductions | $10, then $20, then $25 |
| Sent with SHA (shared charges) | 68 of 72 arrived short; median shortfall $50 |
| Sent with OUR (sender pays) | 7 of 151 arrived short; median shortfall $10 |
Source: Ohmyfin, "Intermediary bank fees: who takes the cut, and how much", 25 October 2026. As published on 29 October 2026.
Where a business meets an intermediary bank
A business meets an intermediary bank in two places. On the sending side, a supplier's bank details sometimes list an "intermediary bank" or "correspondent bank" with its own SWIFT code: this is the bank the supplier's bank uses for dollars, and putting it on the payment can shorten the chain. On the receiving side, an intermediary fee is the usual reason an invoice arrives short.
The payment message records what happened. In the Swift MT103, field 56a names the intermediary institution, field 33B shows the amount originally instructed, field 32A the amount passed on, and each bank that deducted a charge can add a field 71F entry. Ask your bank for the message when a payment arrives short. Our guide to intermediary bank fees explains how to read it.
Common mistakes with intermediary banks
- Sending with shared charges for an invoice that must arrive in full. Under SHA, intermediary fees come out of the payment. Use OUR, or agree in the contract who bears them.
- Assuming OUR guarantees the full amount. It moves the cost to the sender in most cases, but a bank that does not honor the instruction can still deduct.
- Ignoring the supplier's correspondent details. A wrong or missing correspondent is a common reason for delays and returns.
- Sending many small payments. Fees are usually flat, so they take a larger share of small payments. Consolidate where the terms allow.
Related terms and how Helm handles it
Intermediary bank and correspondent bank are often used for the same role; the accounts that link them are nostro and vostro accounts. Who pays the intermediary depends on the SHA, OUR or BEN charge code.
Payouts on local rails avoid the correspondent chain of an international wire, and Helm shows the fee for each route before you confirm.
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USD, EUR and GBP accounts in your company's name, with a named account manager.
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Why is there an intermediary bank on my wire?
Because the sending and receiving banks do not hold accounts with each other in the payment's currency, so a third bank passes the payment between them.
How much do intermediary banks charge?
It varies by bank and route. In Ohmyfin's October 2026 sample, the median deduction on short US dollar payments was $26.76, and the most common amounts were $10, $20 and $25.
Who pays intermediary bank fees?
Under OUR the sender pays them; under SHA and BEN they are deducted from the payment, so the beneficiary bears them.
Is an intermediary bank the same as a correspondent bank?
The terms are often used interchangeably. A correspondent bank is one that holds accounts for other banks; when it passes a payment along, it acts as the intermediary.
How do I find out which bank deducted a fee?
Ask your bank for the MT103 and compare the instructed amount in field 33B with the settled amount in field 32A and any 71F entries.
References
- Ohmyfin: Intermediary bank fees: who takes the cut, and how much (25 October 2026)
- Swift: MT 103 Single Customer Credit Transfer, Message Reference Guide, Standards MT November 2021 (copy published by BNZ)
- Bank for International Settlements: Correspondent banking trends persisted in 2020, even as payment landscape changed, new data show (13 December 2021)
- Swift: gpi for corporates (Association of Corporate Treasurers)
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.