When payments are made locally and overseas, charges are imposed by various banks, eg. the remitting bank, the beneficiary bank, the intermediary bank, etc. These charges can be paid or settled in one of the following ways:
a) BEN: Charges are borne by the beneficiary
Your beneficiary bears all charges of the banks engaged in the transfer of the payment. You only pay the remittance amount. All charges (ours, as well those of the intermediary and beneficiary banks, etc.) will be deducted from the remittance amount and your beneficiary will receive the remaining balance.
b) SHA: Charges are shared
You pay for our charges and the remittance amount. Your beneficiary bears the charges of all the other banks' (the intermediary and beneficiary banks, etc.). Your beneficiary will receive the remaining balance. This is the most common type of charge, where each party bears their respective charges.
c) OUR: Charges are borne by the remitter
You bear all charges of the payment, ie. the remittance amount, our charges, as well as all the other banks' (intermediary and beneficiary banks, etc.) and the beneficiary receives full payment. We will debit your account for payment of charges after the exact amount has been identified. For cases where we have "OUR" arrangement with our correspondents, we will debit the agent charges upfront. We shall not be liable if our correspondent or the beneficiary's bank does not follow the instructions, or if full payment fails to reach the beneficiary's account for any other reason.
This form of payment is the most expensive for you. Where possible, you should opt for SHA (shared charges) or BEN (charges borne by the beneficiary).
