Who pays the bank's transfer fee when receiving payment


If I sell a product for, say, £1000, and a buyer in another country pays me via a bank transfer, should I expect them to pay the bank charges? Is it something that should be explicit on the invoice - e.g., "buyer pays all bank charges"?

Payments Bank Money

asked Jan 21 '12 at 23:42
108 points

2 Answers


Potentially both parties may pay fees, each to their respective bank.

In other words the person paying is responsible for any fees charged by his bank while the recipient is responsible for any fees charged by the receiving bank.

answered Jan 22 '12 at 01:07
Jonny Boats
4,848 points
  • That makes sense. Thanks. – Swisstony 12 years ago
  • Further complications is that not all banks have a direct relationship so sometimes international transfers go through a 3rd party intermediary (A > X > B) who can also levy charges. Its practically impossible to determine what these fees will be in advance. Banks eh? – Ryan 12 years ago


When you sell something you set the price of that item or service. If someone wants to pay you in a way that incurs fees, they should pay those fees. But you need to specify that to your customer up front.

Both the sending and receiving banks will usually charge a fee to process a wire transfer. In addition, they may also be a currency conversion fee (typically 1%). You need to check with your bank to find out what your fees will be, and you can then ask your customer to pay your fees, or not.

answered Jan 22 '12 at 03:20
Gary E
12,510 points
  • Every single payment method incurs fees, including physical cash. Businesses that operate with large amounts of cash have real expenses handling it (handling, security, even simply paying it into a bank costs money). So pragmatically some of these costs are simply 'the cost of doing business'. – Ryan 12 years ago
  • Yes, every payment method has some cost associated wiuth it. But **some** payment methods have **very** large costs associated with them. For example, in the US, wire transfer fees can range from $15 to over $100 **per** transaction. So if you sell a $25 product and your bank charges $75 to receive a wire transfer, you **don't** accept wire transfers, or you make the customer pay the fees. You have no problem depositing cash or checks, or even paying 2% to a credit card company. – Gary E 12 years ago

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