Hidden FX fees on supplier payments

1. The rate margin itself

This is the biggest one, and the least visible. A provider quoting "no transfer fees" can still build in a 2–3% margin on the exchange rate — often more expensive than a broker charging a flat fee with a tighter rate.

Compare the quoted rate with the mid-market rate to see the size of the margin.

2. Correspondent bank charges

International payments — especially to certain regions or via SWIFT — often pass through intermediary banks, each of which can deduct a handling fee before the payment reaches your supplier. Your supplier receives less than you sent, and you may not find out until they query it.

3. Receiving fees

Some banks charge the recipient to receive an international payment. If you're covering costs on your supplier's behalf, this is easy to miss.

4. "OUR" vs "SHA" vs "BEN" charging options

These SWIFT payment codes determine who pays the intermediary fees — you, your supplier, or split between you. Getting this wrong means unexpected deductions, disputes, and awkward conversations with suppliers who've been paid short.

5. Poor timing on rate locks

If your provider doesn't let you lock a rate at the point of quoting, currency movement between quote and settlement can quietly cost — or occasionally save — you money. Either way, it's a variable you should know you're exposed to.