Several factors influence the fees charged by intermediary banks during SWIFT transactions.
1. Number of Intermediary Banks: The more intermediary banks involved in a transaction, the higher the total fees. Each intermediary bank typically charges its own fee, which can accumulate significantly if multiple banks are used to facilitate the transfer.2. Currency and Countries Involved: Different currencies and countries have varying fee structures. Some currencies may incur higher processing costs or additional regulatory requirements, leading to increased fees for transactions involving those currencies.
3. Bank Policies: Each bank sets its own fees for processing international payments, which can differ widely. This variability means that the same transaction could incur different fees depending on the banks involved.
4. Transaction Type: The type of transaction can also affect fees. For example, certain types of transfers may be subject to different fee arrangements based on the nature of the transaction or the services provided by the intermediary banks.
5. Payment Method: The choice of payment instruction method (Split fees, paid by sender, or paid by recipient [link to first question]) can influence who pays the intermediary fees and how much is charged.