Lifting Charge: Meaning, Types & How It's Calculated
TL;DR - Summary
- What is a lifting charge in international payments and wire transfers? - It is a bank’s name for a handling fee, often on a transfer in the same currency. The meaning and the bank charging it depend on the tariff.
- What are the different types of lifting charges? - There is no standard set of types. Sending, intermediary and receiving banks may each charge fees, and their names can overlap.
- How is a lifting charge calculated? - A bank may use a fixed fee or a percentage, sometimes with a minimum or maximum. Check its tariff and any other charges.
- Who pays the lifting charge, the sender or the receiver? - It depends on the charge instruction, the banks’ terms and the route. The fee may be billed separately or deducted from the transfer.
What Is a Lifting Charge in International Payments?
A lifting charge is a name some banks use for a fee for handling a transfer. For example, a bank may charge it when money is sent or received in the same currency. The label does not have one universal meaning, so check the tariff that applies to your payment.
The fee can be charged separately or deducted from the amount transferred. Other costs, such as intermediary-bank fees and currency conversion, can also affect what reaches the recipient. A short credit is not automatically a lifting charge.
Why Do Banks Charge a Lifting Fee?
A lifting fee is a charge a bank applies for handling an international payment as it moves to your account. Banks charge it to cover the work involved in processing the transfer, such as:
- Receiving and processing the payment: Handling the incoming SWIFT message and crediting the funds to the right account.
- Compliance checks: Verifying sender and beneficiary details and screening the payment under anti-money laundering rules.
- Account and settlement costs: Maintaining the foreign currency accounts used to settle cross-border payments.
How much you pay depends on a few factors:
- The bank’s tariff: Each bank sets its own charges, which can vary by payment type, currency, or amount.
- The banking arrangement: The fee depends on how the sending, receiving, and any partner banks have agreed to handle charges, not simply on how many banks the payment passes through.
- Intermediary banks: When a payment is routed through an intermediary, that bank may deduct its own fee for routing or settling the transfer, which reduces the amount you receive.
How Does a Lifting Charge Work in an International Wire Transfer?
An international wire usually passes through a few stages before it reaches your account:
- Your client’s bank sends the payment: It issues the payment instructions with the amount, currency, and your bank details.
- Intermediary banks may handle the transfer: Depending on the route, one or more intermediary banks may move the funds and can deduct a fee along the way.
- Your receiving bank credits your account: It processes the incoming payment and may apply its own lifting charge before crediting you.
SWIFT carries the payment messages between banks. It does not deduct the fee itself; the banks in the route do.
The charge instruction on the payment decides who is meant to pay the fees:
- OUR: The sender pays all charges.
- SHA: The sender pays their bank’s charges, and you pay the rest.
- BEN: You pay all charges, deducted from the amount received.
If the amount credited is less than expected:
- Compare the details: Check the amount and currency sent, the charge instruction, the payment confirmation, and your bank’s credit advice.
- Ask your bank for a breakdown: Request details of every charge deducted before crediting your account.
- Ask for a trace: If needed, ask your client to have their bank trace the payment to see where deductions happened.
- Request the payment message copy: A SWIFT message copy, such as an MT103, can help, though it may not show charges deducted later in the route.
When an international payment arrives short, exporters should not immediately attribute the difference to a lifting charge. Compare the amount remitted with the amount credited, check the exchange rate and conversion applied, and request an itemized breakdown from the receiving bank. This helps distinguish bank fees from FX deductions or other adjustments.
What Are the Different Types of Lifting Charges?
There is no standard set of lifting charge types. Banks use the term in different ways, but most charges on an international wire fall into a few groups based on which bank applies them:
- Receiving bank charges: Your bank may apply a lifting or handling fee under its tariff for processing the incoming payment and crediting your account.
- Sending bank charges: Your client’s bank may charge a fee for sending the transfer, which may be paid by the sender or passed on, depending on the charge instruction.
- Intermediary or correspondent bank charges: A bank that helps route or settle the payment may charge separately for its part in the transfer.
A few points help make sense of these fees:
- Roles can overlap: “Intermediary” and “correspondent” describe what a bank does in a transfer, and one bank can play both roles.
- Labels vary by bank: The same fee may appear as a lifting charge, handling fee, or processing fee, depending on the bank.
- Deduction method matters: Some fees are deducted from the payment amount, while others are billed to you separately.
How Is a Lifting Charge Calculated?
Banks calculate lifting charges under their own tariffs. Most use one of these methods:
- Fixed fee: A flat amount per transfer, whatever the payment size.
- Percentage of the transfer: A set share of the amount received.
- Percentage with a minimum: A percentage, where you pay the minimum if the percentage works out lower.
Example: Metrobank’s Tokyo branch schedule (as of June 2026) lists a lifting charge of 0.05% on yen inward remittances, with a minimum of ¥2,000. This tariff belongs to one branch in Japan. Indian banks set their own.
| Amount received | 0.05% of amount | Lifting charge applied |
|---|---|---|
| ¥1,000,000 | ¥500 | ¥2,000 (minimum applies) |
| ¥10,000,000 | ¥5,000 | ¥5,000 |
Keep in mind:
- Other fees may apply: Inward remittance fees, intermediary charges, or currency conversion costs can be added on top.
- Collection method varies: The bank’s current terms decide whether the fee is deducted from the payment or billed separately.
- Tariffs change: Check the bank’s latest schedule before you estimate costs.
How Much Do Banks Charge for Lifting Fees?
Banks don’t charge a single standard lifting fee. The amount depends on the bank, the currency, and the route the payment takes, so the amount you receive can be less than what your client sent. Here’s an example of how deductions can add up:
| Step | Amount |
|---|---|
| Amount sent by client | $5,000 |
| Intermediary bank fee | −$25 |
| Receiving bank fee | −$15 |
| Amount credited before conversion | $4,960 |
These amounts are for illustration only. They aren’t actual bank fees, and the example assumes no other charges.
To avoid surprises, check these details with the sending and receiving banks before the transfer:
- Bank fees: What the sending and receiving banks charge for the transfer.
- Intermediary charges: Whether any intermediary bank is likely to deduct a fee along the route.
- Taxes: Any taxes that apply to the transfer or currency conversion.
- Exchange rate: The rate used to convert the payment and how it compares with the market rate.
Some charges are published in advance, while others depend on the route the payment takes. Compare the total cost of receiving the payment, since looking at one fee alone won’t show what you’ll actually receive.
Who Pays the Lifting Charge: Sender or Receiver?
Either the sender or the receiver can pay the lifting charge. Who pays depends on the charge instruction in the payment and the terms of the banks involved:
| Step | Amount |
|---|---|
| Amount sent by client | $5,000 |
| Intermediary bank fee | −$25 |
| Receiving bank fee | −$15 |
| Amount credited before conversion | $4,960 |
Before the transfer, confirm the charge instruction with your client and check the charges with both banks so you know what you’ll receive.
What Is the Difference Between a Lifting Charge and an Intermediary Bank Fee?
Both fees can reduce the amount you receive, but they come from different places in the transfer:
| Lifting charge | Intermediary bank fee | |
|---|---|---|
| What it is | A handling fee a bank applies under its own tariff | A fee for helping route or settle the payment |
| Who charges it | Usually the sending or receiving bank | A bank between the sending and receiving banks |
| How it's defined | Depends on how each bank uses the term | Depends on the intermediary's role and terms |
| When it applies | When the bank processes the payment | When the payment passes through that intermediary |
How to Avoid or Reduce Lifting Charges on International Payments
You can’t always avoid lifting charges, but you can lower them by planning the transfer ahead of time:
- Agree on who pays: Settle the charge instruction (OUR, SHA, or BEN) with your client before they send the payment.
- Check the route: Ask both banks how the payment will travel and whether any intermediary banks are likely to be involved.
- Ask for the full tariff: Find out the sending, intermediary, and receiving bank fees that apply to your transfer.
- Compare exchange rates: Check the rate your bank will use to convert the payment and how it compares with the market rate.
- Calculate the final amount: Compare what you expect to receive after all known costs, instead of judging by one fee.
- Consider a local payment route: Receiving through a local payment method in your client’s country can avoid some SWIFT charges, though other fees may still apply.
- Review the provider’s terms: Check the fees, the exchange rate, and the payment methods your client can use before choosing a provider.
Our guide explains more ways to avoid hidden international transaction charges.
How Do Lifting Charges Affect Exporters and Freelancers in India?
Lifting charges can create a few problems when you receive international payments:
- Lower margins: Every fee deducted from the payment reduces what you actually earn from the invoice.
- Harder reconciliation: When the amount credited doesn’t match the invoice, it takes extra work to match payments to invoices in your books.
- Unclear deductions: If several banks take a fee, it can be hard to tell who charged what.
- Pricing uncertainty: Fees that change by route or bank make it harder to quote prices that protect your margin.
How Skydo Helps Indian Exporters Avoid Intermediary Bank Charges
Bank fees can make it hard to predict the amount that reaches you. The route matters: local payments and international SWIFT payments can have different costs.
Skydo helps Indian businesses and eligible freelancers receive international export payments. Local receiving details can let eligible clients pay by a local transfer, avoiding SWIFT charges on that transfer. International SWIFT payments can still incur sending or intermediary-bank charges; check the route and quote before your client pays.
- Pricing: For Global Bank Account transfers, the published fee is $19 for payments up to $2,000, $29 for $2,001–$10,000, and 0.3% above $10,000, plus 18% GST on our fee. Amazon Global Selling has separate pricing. Check your quote for the exact amount and any route-specific charges.
- Virtual accounts: We offer local receiving details in USD, EUR, GBP, SGD, AUD, CAD and AED. Eligible clients can use the local payment details; other payments may use an International SWIFT account. These receiving details are for payment collection, not a foreign-currency deposit account.
- Setup and fees: Signup is online, and activation depends on KYC and document verification. There are no monthly maintenance fees; transaction and route charges may apply.
- FIRA: Each payment comes with a free Foreign Inward Remittance Advice (FIRA), which helps document receipt. Check which documents your bank or filing requires: a FIRA is not automatically a FIRC or eBRC.
- eBRC assistance: You can link your DGFT account, bulk-upload shipping bills, review matched inward remittance messages and approve eBRC generation. The shipping-bill workflow applies to goods exports.
- EDPMS closure assistance: We help with export-payment documents and closure requests. The authorised dealer bank checks and updates the relevant EDPMS entries; generating an eBRC does not itself close them.
- Settlement: We aim for settlement in 24 hours. Our terms allow T+1 to T+3 business days, with T being the business day after the payment passes our checks. Other banks’ processing can also affect timing. This is not a guaranteed one-day credit from when your client sends the payment.
- Support: Our India-based team can help by phone, email or chat. If a payment arrives short, compare the invoice, payment confirmation and credit advice, then ask for a fee breakdown and trace if needed.
Are lifting charges disclosed before a transfer is initiated?
Some banks publish their fees upfront, while intermediary or receiving-bank charges may depend on the route. Ask both banks for the applicable tariff and an estimate of other charges before the transfer.
What should I do if a lifting charge was deducted without prior notice?
Can deductions delay an international payment as well as reduce it?
