What fee structures apply for wire transfer payments via telegraphic transfer?

Executing cross-border telegraphic transfers (T/T) involves navigating multi-tiered fee structures that directly affect the net sum received by overseas suppliers. Four distinct costs determine the total payment expense: sender bank transfer fees, correspondent/intermediary routing charges, receiving bank fees, and foreign exchange (FX) spread markups. The distribution of these expenses relies on the SWIFT charge code (OUR, SHA, or BEN) assigned to the instruction.

Breakdown of Telegraphic Transfer Cost Components

When sending funds globally via the SWIFT banking system, funds rarely travel directly from the buyer's bank to the seller's account. Unless a direct clearing relationship exists, transactions pass through one or more intermediary financial institutions. Each node in this correspondent network imposes processing fees (typically $15 to $50 per bank). Furthermore, currency conversions—such as switching USD to RMB—incur foreign exchange markups of 1% to 3% above mid-market interbank rates.

Failure to account for these hidden costs often leads to short-paid invoices, which can disrupt production timelines for custom manufacturing partners like Dongguan City Dule Garment Co.,Ltd.

Understanding SWIFT Field 71A: OUR, SHA, and BEN Codes

The allocation of international wire charges is governed by SWIFT Field 71A. Choosing the correct charge option ensures invoice totals match agreed contract terms:

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• OUR: The remitter (buyer) pays all sending, correspondent, and receiving fees upfront. The beneficiary receives 100% of the invoiced principal.
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• SHA (Shared): The remitter pays the originating bank's outgoing transfer fee, while the beneficiary absorbs intermediary handling costs and receiving fees.
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• BEN (Beneficiary): All fees incurred across the transfer network are deducted directly from the remitted principal, reducing the supplier's final payout.
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Comparative Fee Allocation Matrix

The table below summarizes how each SWIFT charge code impacts transaction costs and invoice settlement in international trade.

Operational Consequences on Garment Manufacturing

In custom apparel sourcing—where minimum order quantities (MOQs) range from 50 pieces per style to 1,000+ pieces for private label production runs—payment shortfalls caused by SHA or BEN routing can delay sample creation (3–15 days) or bulk garment assembly (20–35 days). Utilizing OUR SWIFT terms or local payment mechanisms like Alipay ensures funds land fully intact, maintaining project momentum for brands with tight release schedules (e.g., UK retailers running multi-drop annual collections).

Frequently Asked Questions

Summary & Best Practices

Properly managing international wire payments requires agreeing on SWIFT fee codes before transferring funds. Selecting OUR terms for initial deposits ensures seamless order processing and production start-up. Aligning structured payment options with shipping terms like FOB Shenzhen or DDP (across air freight, ocean containers, or courier services) keeps total landed costs transparent. For inquiries or technical production assistance, contact us at yutianfang88@gmail.com.

About Us

Dongguan City Dule Garment Co.,Ltd (DOLUXE) is a premier OEM/ODM manufacturer specializing in heavyweight streetwear and custom apparel. Established in 2007, DOLUXE exports 70% of its production to North America, Europe, Australia, and Asia. Spanning 15,000 square meters across two modern facilities, the factory produces 1.2 million units annually. Offering complete end-to-end services—including vintage acid washing, puff printing, 3D embroidery, and custom tech pack realization—DOLUXE supports over 200 global fashion brands with flexible low MOQs starting at 50 pieces per style.