The charges applying to international transfers comprise a processing charge and the exchange rate difference.
Whenever you enter international payment instructions in Touch, an estimate of the charges will always be displayed to give you an idea of how much it will cost you.
The processing charge
You can choose from three options:
- Principal pays the costs (OUR): you pay all the charges applying to the transaction, i.e. those levied by KBC and by the beneficiary's bank.
- Shared costs (SHA): each party pays their own charges, i.e. you pay KBC's charges and the beneficiary pays their bank's charges.
- Beneficiary pays the costs (BEN): the beneficiary pays all the charges i.e. those levied by KBC and by the beneficiary's bank.
Bear the following in mind when making payments with the 'OUR' cost option (i.e. the principal pays all charges). Although KBC makes every effort to ensure that the full amount reaches the beneficiary, it cannot guarantee that the ‘OUR’ character of the payment will be preserved throughout the processing chain and that the beneficiary receives the full amount.
This is mainly a problem with payments made in US dollars. These always go through the US. When a payment is made from one US bank to another, the 'OUR' cost option usually falls away and consequently payments are converted to the 'SHA' system (where the beneficiary also has to pay a share of the charges). Therefore, the beneficiary does not receive the full amount of the transfer, even if the principal has chosen the 'OUR' cost option.
KBC is in constant dialogue with its US correspondent banks* to resolve this issue as much as possible.
However, you can do your bit to help here too!
If you notice a problem with a payment you've made in US dollars after choosing the 'OUR' cost option (i.e. the principal pays all the charges), let us know as quickly as possible. We will then take it up with the relevant US correspondent bank, which in certain cases will pay the missing amount.
The exchange rate difference
The actual rates at which you buy foreign currencies in KBC Touch may be slightly different than the official rates due to the fact that exchange rates constantly fluctuate. Rates are adjusted every hour at KBC, but differences are always possible.
* KBC works with an extensive network of correspondent banks in other countries to make payments and to make sure they go through local payment systems and reach the payees.
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