Understanding Intermediary Bank Fees (Correspondent Fees) When Sending and Receiving Payments

When you send payments globally through LiquidTrust, your payment will travel through our network of banking partners to reach its final destination. Just like a journey with connecting flights, these intermediary banks can sometimes apply their own fees, which are often called "correspondent fees" or "intermediary bank fees."

At LiquidTrust, we strive to be transparent about all potential costs. While our direct fees are clear and upfront, these intermediary fees are charged by other banks in the payment chain, and they are outside of our control.

Think of it like this:

When you send money to a country where your bank (or LiquidTrust's banking partner) doesn't have a direct connection to the recipient's bank, the money might need to pass through one or more "middleman" banks to get there. Each of these intermediary banks can charge a small fee for their role in facilitating the transfer.

How Do Intermediary Fees Work?

• When Sending Money: When you initiate a payment, especially across different countries or currencies, your funds might travel through several banking partners. If the sending bank's partner and the recipient's bank don't have a direct relationship, other banks in the network step in to help move the money. These banks may deduct a fee from the amount as it passes through.
• When Receiving Money: Similarly, when someone sends you money, it might go through these intermediary banks before reaching your LiquidTrust wallet or connected bank account. These banks can also deduct their fees from the amount on its way to you.

What to Expect Regarding Intermediary Fees:

• Variable Amounts: The amount charged by intermediary banks can vary significantly. It depends on factors like the currency, the countries involved, the specific banks in the chain, and the transaction amount. We've seen these fees range from a few dollars to the equivalent of 50 USD depending on the complexity of the route.
• Deducted from the Transfer: These fees are typically deducted directly from the amount being transferred. This means the recipient might receive slightly less than the original amount sent or expected.
• Unpredictable: The specific banks involved in a transfer can change, making it difficult to predict the exact fees in advance. These fees are determined by the individual banks in the network, not by LiquidTrust.
• Transparency from LiquidTrust: While we can't control these fees, we are committed to full transparency regarding our own fees. Any fees charged by LiquidTrust will always be shown to you upfront.

How Can You Minimize the Impact of Intermediary Fees?

Unfortunately, intermediary fees are an inherent part of certain international banking networks. However, here are some general considerations:

• Check Our Fee Structure: Always review LiquidTrust's stated fees for your specific transaction. Our goal is to provide the most cost-effective and transparent service.
• Communicate with Your Contact: If you're sending money, consider discussing with your recipient that they might receive a slightly reduced amount due to potential intermediary fees.
• FX Options: For certain countries, LiquidTrust offers payments in local foreign currency, which can bypass these USD intermediary fees. Always check the available options for your specific payment via our country list shown here.

We understand that unexpected fees can be frustrating, and we work hard to minimize their occurrence and ensure you have the clearest possible understanding of your transactions. Our platform is designed to be as efficient as possible, leveraging our network of banking partners to get your money where it needs to go.