SWIFT Transfer Charges: Components, Example & How to Reduce
TL;DR - Summary
- What are SWIFT transfer charges? - SWIFT transfer charges are the costs associated with sending or receiving an international bank transfer through the SWIFT network. These can include the sending bank's fee, intermediary or correspondent-bank charges, the recipient bank's inward-remittance fee, and any foreign-exchange spread applied during currency conversion.
- How much do SWIFT transfer charges typically cost? - There is no standard SWIFT transfer fee or universal total cost. The amount depends on the banks involved, payment route, currency, transaction value, intermediary charges, and exchange rate used.
- Do OUR, SHA, and BEN codes affect SWIFT transfer charges? - Yes. OUR, SHA, and BEN determine how SWIFT transfer charges are allocated. OUR generally places the applicable transfer charges on the sender, SHA divides charges between the sender and recipient, and BEN places the charges on the beneficiary.
- Can Indian businesses reduce SWIFT transfer charges? - Yes. Indian businesses can reduce SWIFT costs by using local payment rails such as ACH or SEPA where available, consolidating payments, negotiating better foreign-exchange rates, choosing an appropriate charge arrangement, and using permitted foreign-currency accounts such as EEFC accounts.
- Is there a way to avoid SWIFT deductions entirely? - Businesses can avoid correspondent-bank deductions by receiving payments through platforms that use local receiving accounts and domestic payment rails instead of routing the customer's payment through SWIFT.
What Is a SWIFT Transfer?
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network that enables banks and financial institutions to securely exchange payment instructions for cross-border transactions. A SWIFT transfer is an international payment sent through the SWIFT network, the messaging system banks use to instruct each other to move money across borders securely.
Founded in 1973 and headquartered in Belgium, SWIFT connects more than 11,000 financial institutions across over 200 countries. It carried over 59.8 million messages a day as of 2025, the most recent year SWIFT has published figures for.
When receiving an international payment into an Indian bank account, the sender’s bank uses the recipient bank’s SWIFT/BIC code along with the beneficiary’s account details to route the payment to the correct institution. This is also called a Telegraphic Transfer (TT), an older term Indian banks still use for the same wire sent over SWIFT.
What Constitutes SWIFT Transfer Charges?
SWIFT transfer charges are made up of several costs that can arise at different points in an international payment. The sender's bank, intermediary banks, recipient's bank, and currency conversion can all affect the amount that finally reaches the Indian account.
- Sender's Outgoing Fee: The bank initiating the SWIFT payment may charge a wire-transfer fee. The amount depends on the bank and transfer channel. For example, SBI's published schedule lists ₹500 for an outward SWIFT message, while charges can differ for branch transactions and specific customer categories.
- Intermediary / Correspondent Bank Charges: A payment may travel through one or more correspondent banks before reaching the beneficiary's bank. Each intermediary can levy its own fee or deduct an amount from the payment, so the recipient may receive less than the sender originally instructed. There is no standard SWIFT charge applicable to every intermediary bank.
- Recipient's Inward Remittance Fee: The Indian bank receiving the funds may charge an inward-remittance fee. For example, Axis Bank lists ₹250 for inward wire transfers for resident customers under its applicable schedule. The exact fee depends on the bank, account type, and transaction.
- Forex Rate Markup: When the incoming currency is converted into INR, the bank's exchange rate may include a spread over the prevailing market rate. This is a separate cost from the SWIFT transfer fee, and the percentage varies by bank, currency, and transaction.
- Taxes and Compliance Costs: GST may be charged on taxable banking, remittance, and foreign-exchange services. For example, if a bank charges ₹250 as an inward-remittance fee, GST at 18% would add ₹45, making the fee ₹295. Additional charges may apply for specific certificates or documentation.
Note that SWIFT charges are not fixed. The total cost can change based on the sending and receiving banks, currency, transfer amount, payment route, intermediary banks involved, and the exchange rate used. A quoted SWIFT fee therefore does not necessarily represent the total cost of receiving the payment.
After a SWIFT payment has been processed, you can ask the bank for the MT103 or equivalent SWIFT payment confirmation, where available. It contains transaction details that can help trace the payment and check deductions made during transit.
What Do OUR, SHA, and BEN Charge Codes Mean?
OUR, SHA, and BEN are the three charge instructions used for international SWIFT transfers. They determine how the sender's bank, intermediary banks, and beneficiary's bank charges are allocated, which can directly affect the amount ultimately credited to an Indian recipient.
OUR (Sender Pays All)
- The sender agrees to bear the applicable transfer charges, including their bank's fees and, where supported by the payment route, intermediary and receiving-bank charges.
- The intention is for the beneficiary to receive the full payment amount without standard transfer charges being deducted from the principal.
- However, the final credited amount can still vary if charges are imposed outside the sender's bank or by banks and payment systems not covered by the OUR arrangement.
SHA (Shared)
- The sender pays the charges levied by their own bank, while other applicable charges are passed on to the beneficiary.
- Intermediary or correspondent banks may deduct their fees from the payment before it reaches India.
- The receiving bank can also charge an inward-remittance fee, so the recipient may receive less than the amount sent.
BEN (Beneficiary Pays All)
- The beneficiary is responsible for the applicable transfer charges, including charges that would otherwise be payable by the sender.
- These charges can be deducted from the payment as it moves through the banking network.
- The recipient therefore receives the transfer amount after the applicable deductions.
For an Indian freelancer or exporter who needs the full invoice value to reach their account, OUR is generally the more favourable charge instruction. SHA and BEN can result in deductions from the amount received, although the actual outcome depends on the banks and payment route involved.
Example of SWIFT Transfer Charges on an Invoice
A $10,000 SWIFT payment from the US to India can lose value at several stages, depending on the banks involved, charge arrangement, and exchange rate. The following is an illustrative SHA example, and not a fixed industry fee schedule. For context, Chase currently charges $40 for an online international wire in USD, while Axis Bank lists ₹250 plus GST for an inward SWIFT transfer to a resident account. Correspondent-bank deductions vary by payment route.
| Stage | Amount at This Point | What Happened |
|---|---|---|
| Original Invoice | $10,000.00 | The US client sends the full invoiced amount. |
| Sender's Outgoing Fee | $10,000.00 | Under SHA terms, the sender pays their bank's wire fee ($40) out-of-pocket, so $10,000 enters the network intact. |
| After Intermediary Banks | $9,960.00 | Illustrative $20 deduction by each of two correspondent banks ($40 total mid-route deduction). |
| After Indian Bank Fee | $9,956.57 | ₹250 + 18% GST = ₹295 inward fee deducted (approx. $3.43 at an illustrative ₹86/USD rate). |
| Final INR Credit | ~₹8,34,858 | Remaining $9,956.57 converted at the bank's effective rate (₹83.85/USD after spread). |
Here, if the Indian bank fee is ₹295 and the reference rate is ₹86/USD, the fee equals $3.43, leaving $9,916.57. At a 2.5% FX spread, assuming ₹86/USD is the mid-market reference rate, the effective bank rate would be ₹83.85/USD. The final credit would therefore be approximately ₹8,31,504
after conversion.
The important point is that the FX spread is calculated on the amount being converted and not on the original $10,000. The actual INR credit will depend on the bank's quoted exchange rate, so a 2.5% spread should be treated only as an illustration, not as a standard bank markup.
If the payment is sent under OUR terms, the sender agrees to bear the applicable transfer charges rather than passing standard correspondent charges to the beneficiary. The Indian recipient may still have receiving-bank charges or currency-conversion costs, and hidden costs depending on the bank and arrangement.
How Can Indian Businesses Reduce SWIFT Transfer Charges?
Besides looking for SWIFT payment alternatives, Indian businesses can reduce SWIFT costs by avoiding unnecessary intermediary banks, consolidating payments, choosing the right charge arrangement, negotiating exchange rates, and using foreign-currency accounts strategically.
Bypass SWIFT with Local Clearing Rails
- Payment platforms with local receiving accounts can accept payments through ACH in the US or SEPA in Europe, instead of routing them through the SWIFT network. This can eliminate correspondent-bank deductions and may also speed up settlement.
Consolidate and Batch Payments
- Where practical, combine several smaller receipts into fewer larger transfers. This can reduce the number of fixed bank and intermediary charges incurred across multiple transactions.
Optimize SWIFT Charge Codes
- OUR generally means the sender bears the applicable transfer charges, which can help prevent intermediary fees from being deducted from the amount you receive. With SHA, some charges are passed on to the beneficiary. Agree on the charge arrangement with the client before payment.
Negotiate Forex Markups
- The exchange rate can have a larger financial impact than a fixed wire fee on high-value transfers. Businesses with regular foreign-currency receipts can negotiate preferential rates with their bank and compare the quoted INR rate with the prevailing market rate before converting.
Maintain Multi-Currency Balances (EEFC Accounts)
- An EEFC account allows eligible exporters and other foreign-exchange earners to hold permitted foreign-currency receipts rather than converting them immediately. This gives you flexibility over when to convert the funds, although the account is subject to RBI rules and permitted-use conditions.
- SWIFT costs vary by bank, transaction size, currency, payment route, and intermediary institutions. Before a large transfer, ask for the complete cost, including fixed fees, correspondent charges, inward fees, and the applicable exchange rate.
When your US or European client can pay over ACH or SEPA, take the payment into a local receiving account. Receiving on a domestic rail can strip out the correspondent-bank layer that a traditional SWIFT transfer carries, which is where a lot of the cost and delay hides.
For a cost comparison, make sure you understand the underlying differences between ACH vs wire transfer vs card and check what is the cheapest for Indian receivers.
How Does Skydo Help Reduce SWIFT Transfer Charges for Indian Businesses?
Skydo can make receiving overseas payments cheaper than a conventional SWIFT transfer by letting customers pay into local-currency receiving accounts instead of sending money through multiple correspondent banks.
Skydo gives businesses access to receiving accounts in USD, EUR, GBP, SGD, AUD, and CAD. Where local payment methods such as ACH or SEPA are supported, the customer can pay domestically, avoiding the correspondent-bank chain that can reduce the amount received through a traditional wire. Alongside, it offers:
- Flat, predictable fees with no forex markup: The amount Skydo charges depends on the payment size; $19 up to $2,000, $29 from $2,001 to $10,000, and 0.3% above $10,000, plus GST. There is no separate FX markup added to the conversion, so you can estimate your receiving cost before the payment is made.
- Free FIRA with every transaction: Skydo provides an instant free FIRA at no additional charge for each eligible payment, giving you a record of the foreign funds received for your accounting and compliance records.
- Settlement within 1 working day: After the payment reaches the relevant receiving account, Skydo generally transfers the funds to your Indian bank account within one business day. The initial payment time depends on the client's country and payment method.
Additionally, payment records and remittance documentation are available digitally, while exporters can use Skydo's eBRC and EDPMS assistance for processes such as shipping-bill uploads and matching inward remittances.
Skydo does not charge a monthly account fee. Opening an account takes around 5 minutes, and the applicable international bank transfer fees are charged only when you receive a payment.
Is there a charge for receiving a SWIFT transfer in India?
Yes, an Indian bank may charge an inward-remittance or wire-processing fee when you receive a SWIFT transfer. The amount varies by bank and account type. Correspondent-bank charges and foreign-exchange conversion costs may apply separately.
What are SBI's charges for inward SWIFT transfers?
How many days does a SWIFT transfer take to arrive in India?
Can I receive more than ₹2 lakh via a SWIFT bank transfer?
Who pays the SWIFT transfer charges - sender or receiver?
Are SWIFT transfer charges fixed?
Can I track SWIFT fees deducted mid-route?
Does selecting OUR guarantee I receive the full invoiced amount?
Is GST applicable on SWIFT transfer service charges in India?
