Correspondent Banks Fees
or IBAN wire transfers are not
completely free of vulnerabilities.
Every intermediate bank that handles a
wire transaction can take a fee directly
out of the wire payload (the assets
being transferred) without the account
holders knowledge or consent. There is
no legislation or technical means to
protect customers from this practice. If
bank S is the sending bank (or brokerage),
and bank R is the receiving bank (or
brokerage), and bank I1, I2, and I3 are
intermediary banks, the client may only
have a contract with bank S and/or R,
but banks I1, I2, and I3 can (and often
do) take money from the wire without any
direct arrangement with the client.
Clients are sometimes taken by surprise
when less money arrives at bank R.
Contrast this with cheques, the amount
transferred is guaranteed in full, and
fees (if there are any) can be charged
only at endpoint banks.