Glossary entry

Intermediary bank

An intermediary bank is a bank that sits between the sending bank and the receiving bank on some international payments, passing the instruction along the chain. It may deduct a charge, so the amount credited to the recipient can be lower than the amount quoted unless the provider guarantees the received amount. You usually cannot see these charges in advance, which is why a quote that states the recipient gets exactly a given amount is worth more than one that only gives an estimate. See also: correspondent bank, SWIFT, and the guide How to Read a Money Transfer Quote.