Foreign bank charges in MT103 - BEN, SHA, OUR

International wire transfers are executed via standard message format MT103 in the SWIFT messagin platform. In this article, we’ll discuss the different options available for foreign bank charges.

Please get familiar with the below terms which will be used in our below discussion.

Remitter: one who is initiating a foreign remittance

Beneficiary: one to whom the funds is being remitted

Remitter's bank: the bank where the applicant holds an account and from where the MT103 is being sent

Beneficiary's bank: the bank where the beneficiary holds an account and where the funds will finally be credited

There are 3 types of foreign bank charges – BEN, SHA and OUR.

Let’s discuss these in details below:

1. BEN

When BEN is selected, all the charges related to the remittance is borne by the beneficiary.

For example, if the remittance is for USD 100.00 and the charges of the remitter's bank is USD 5.00, then this amount will be deducted from the remittance amount. The amount mentioned in the MT103 will be USD 95.00

2. SHA

When SHA is selected, the remitter's bank charges are born by the applicant and the beneficiary's bank charges are borne by the beneficiary. The beneficiary bank deducts its charges before providing credit to the beneficiary.

For example, if the remittance is for USD 100.00 and the charges of the remitter's bank is USD 5.00, then this amount will be separately recovered from the remitter. The amount mentioned in the MT103 will be USD 100.00

3. OUR

When OUR is selected, all the charges related to the remittance is borne by the remitter. In this case, the beneficiary received full amount.

For example, if the remittance is for USD 100.00 and the charges of the remitter's bank is USD 5.00, then this amount will be separately recovered from the remitter. The amount mentioned in the MT103 will be USD 100.00 In addition to this the charges of the beneficiary's bank is also recovered from the remitter. This is recovered at a later date when the claim is received from the beneficiary's bank.