| Páginas sobre el tema: < [1 2] | An unnecessary fee of the correspondent bank Autor de la hebra: ptansri
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Samuel Murray 
Países Bajos
Local time: 00:16
Miembro 2006
inglés al afrikaans
+ ...
| They deduct a fixed fee, not a percentage | Dec 28, 2014 |
ptansri wrote:
I also wonder why the bank deducted almost half of the payment as fee.
Because they deduct a fixed fee, not a percentage. To them, the deduction is not "half of your money" because they they don't determine the fee based on how much your money is.
If the transfer fee is $50, and you transfer $51, then you'll end up with $1, and although that may seem to you like the fee was "98%" of the money, the fee was really only $50.
So after the bank fee, the left amount is not even worth my effort doing that job.
When you do business internationally you have to take into account all the costs of doing so. Sometimes we only learn of certain costs when those costs occur. You choose between various risks, e.g. the risk that clients won't give you jobs if you require them to pay all transfer fees, or the risk that the transfer fee will be sky high if you accept such jobs.
They obviously ripped me off.
The sad fact is that you ripped yourself off (-: but you have my sympathy, because you did not see it coming.
| | | | 2GT
Italia
Local time: 00:16
inglés al italiano
+ ...
Samuel Murray: ptansri:
I also wonder why the bank deducted almost half of the payment as fee. Because they deduct a fixed fee, not a percentage. To them, the deduction is not "half of your money" because they they don't determine the fee based on how much your money is. If the transfer fee is $50, and you transfer $51, then you'll end up with $1, and although that may seem to you like the fee was "98%" of the money, the fee was really only $50.
So if the amount due is 40 USD and the intermediary bank thiefee is 50 USD, then are you going to owe them 10 USD?
Cheers
Gianni
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Gabriele Demuth wrote:
[Edited at 2014-12-26 10:23 GMT]
So is it the bank you should be complaining to? This sounds as if we were at their mercy, had to pay whatever they chose to charge and if they chose to invite other banks to the party then we pay for that as well. [/quote]
yes, we are - to a certain extent.
I once tried to chase some 40 USD which had vanished somewhere along the way. My client gave me all the docs confirming the fact that he had paid all the fees his bank required. In my bank I was told that they didn`t take anything either. The end.
However, these 40 USD were a very tiny percentage of the total amount.
| | | | Samuel Murray
Países Bajos
Local time: 00:16
Miembro 2006
inglés al afrikaans
+ ...
2G Trad wrote: Samuel Murray:
If the transfer fee is $50, and you transfer $51, then you'll end up with $1, and although that may seem to you like the fee was "98%" of the money, the fee was really only $50. So if the amount due is 40 USD and the intermediary bank fee is 50 USD, then are you going to owe them 10 USD?
I have never tried that, so I have no idea what would happen.
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| I can tell you that | Dec 29, 2014 |
Samuel Murray wrote: 2G Trad wrote: Samuel Murray:
If the transfer fee is $50, and you transfer $51, then you'll end up with $1, and although that may seem to you like the fee was "98%" of the money, the fee was really only $50. So if the amount due is 40 USD and the intermediary bank fee is 50 USD, then are you going to owe them 10 USD? I have never tried that, so I have no idea what would happen.
Years ago, when I was "green" in using wire transfers, an agency sent me a WT for the big job, and I paid the fee. Then the agency sent me a minor "the end-client forgot..." job, and was just about to send me a smaller-than-fee WT. I called my bank manager, and she told me to halt that WT on its tracks, otherwise I'd receive nothing and my account would be charged the balance.
The reason is that every time you do a foreign exchange transaction, you sign an agreement with whoever is doing it with you. The complexity of this agreement may vary sharply, but it always exists, and it involves fees, since the exchange operator is making a living on that. Of course, where there is a black market, there is no such contract, since the entire operation takes place on the shady side of the street.
I recall a trip to England, back in the 1980s. Buying foreign currency in Brazil was extremely complex, credit cards were all for domestic use only, so I left home with a pack of USD, since I'd be visiting other countries too. The EUR didn't exist yet.
Every time I needed GBP in London, I'd take some USD to an exchange house. I was amazed that entire blocks on Oxford St. basically had two kinds of stores: foreign exchange and shish kebab. They alternated like the stripes on the US flag. There, a clerk would write some data on a giant book, and have me sign at the end of the line at every transaction. That was the agreement.
Nowadays, if I do any foreign exchange transaction at my bank here in Brazil, regardless of the amount, they print two counterparts of a 5-page agreement and have me sign it. Of course, I chose the modern option, and we do it online, I sign it electronically by clicking on a checkbox after having been thoroughly identified online. However the agreement is there, and I can download it as a PDF, print it, e-mail it, whatever. Both options are available, the latter costing about one-third of the "paper" one, and does not require my personal presence at the bank branch to sign it.
Bottom line is that the electronic agreement makes me incur a BRL 60 (~USD 30-) transaction fee.
OTOH receiving a payment via PayPal here costs me 10% of the entire amount (6.5% in fees + 3.5% in overtly lower exchange rates). So, for payments under USD 300 I prefer PayPal.
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