A software company in Texas pays USD 10,000 to a design studio in São Paulo. The bank statement shows a single sending fee, yet the studio reports that less arrived than expected, and the finance team cannot say where the difference went. The answer is rarely one fee. Which cross-border transaction fees does a business actually pay on an international payment?
The visible fee is only part of it: an international payment usually carries an FX markup on the exchange rate, a sending fee, one or more correspondent bank fees and sometimes a receiving fee, plus taxes in some countries. Which ones apply, and who pays them, depends on the route (SWIFT, local payout or stablecoin) and on the charge option chosen (OUR, SHA or BEN).
What is a cross-border transaction fee?
A cross-border transaction fee is any charge applied when money moves between countries or currencies. Some are explicit, such as a fixed fee per transfer. Others are built into the price of the operation, such as the difference between the exchange rate you get and the reference rate in the market.
For a business, the useful number is the total cost: what left your account compared with what the recipient could use, in their currency. Looking at the fee line alone hides most of that cost. For a broader view of how routes, timelines and costs connect, see how cross-border payments work.
Which fees make up the cost of an international payment?
Most international payments combine up to six cost components. Not every payment carries all of them, but each one should be checked before choosing a route.
1. FX markup
The FX markup, or spread, is the difference between the rate the provider applies and the market reference rate. It rarely appears as a separate line, which makes it the cost most often missed. On large or recurring payments, it can outweigh every fixed fee combined.
2. Sending fee
The sending fee is what your bank or provider charges to initiate the transfer. It is usually fixed per payment, sometimes with a separate charge for urgent or manually handled transfers.
3. Correspondent bank fees
When banks do not have a direct relationship, a SWIFT payment passes through one or more intermediary banks. Each one may deduct a fee from the amount in transit, which explains why the recipient often receives less than was sent. The number of intermediaries depends on the currency and the banks involved, so the cost is hard to predict in advance.
4. Receiving fee
The recipient's bank may charge to credit an incoming international transfer. In Brazil, the incoming foreign currency also goes through an FX operation to become reais, which adds its own spread on the receiving side.
5. Taxes in the origin or destination country
Some countries tax FX operations. In Brazil, IOF applies to the FX leg: under Decree No. 6,306/2007, article 15-B, inflows generally pay 0.38%, export revenue pays 0%, and outflows for services pay 3.5%. The rate depends on the nature of the operation, which is why the purpose of each payment must be declared correctly. Transfero's guide to IOF on cross-border transactions covers each case.
6. Network and conversion fees on stablecoin routes
Stablecoin routes replace correspondent banks with a blockchain transfer, but they are not free. The cost moves to the conversion into and out of the stablecoin (on-ramp and off-ramp spreads) and to the network fee, which varies by blockchain and by moment. In Brazil, buying, selling or swapping a stablecoin in an international payment is an FX operation under BCB Resolution No. 521, of November 10, 2025.
Who pays what? OUR, SHA and BEN explained
On a SWIFT transfer, the charge option tells the banks who carries the fees. It is chosen by the sender when the payment is created.
Option | Who pays the sending fee | Who pays intermediary and receiving fees | What the recipient gets |
|---|---|---|---|
OUR | Sender | Sender | The full amount, in principle |
SHA | Sender | Recipient | The amount minus intermediary and receiving fees |
BEN | Recipient | Recipient | The amount minus all fees |
Even with OUR, an intermediary bank may still deduct a fee in some corridors. When a supplier must receive an exact amount, confirm with your provider how OUR is handled end to end.
Are card cross-border fees the same thing?
No. When a company card is used for a purchase in another currency, the card issuer may add a foreign transaction fee to the card statement. That is a card pricing rule, not a payment-transfer fee. This article covers business-to-business payments sent by transfer, local payout or stablecoin.
What does a USD 10,000 payment to Brazil cost by each route? An example
The US company from the opening pays USD 10,000 to its supplier in Brazil. The table shows where each cost appears on three routes. Values are illustrative and are not market averages or Transfero prices.
Cost component | SWIFT transfer (SHA) | Local payout in BRL | Stablecoin converted to BRL |
|---|---|---|---|
Sending fee | Charged by the sending bank | Charged by the provider | Charged by the provider, if any |
Correspondent fees | Deducted in transit, for example USD 20 to USD 40 | Not applicable | Not applicable |
FX markup | Applied by the recipient's bank in Brazil | Applied by the provider when converting USD to BRL | Applied at on-ramp and off-ramp |
Network fee | Not applicable | Not applicable | Depends on the blockchain |
IOF in Brazil | 0.38% on inflows; 0% if export revenue | Same rule, by nature of the operation | Same rule, by nature of the operation |
What the supplier sees | Less than USD 10,000, converted by its bank | A BRL amount known in advance | A BRL amount after conversion |
The SWIFT route has the least predictable cost because intermediary fees and the recipient's FX spread are applied after the payment leaves. The local payout route concentrates the conversion in one place, so the supplier knows what arrives in reais.
Want to see the full cost of your next payment before you send it? Talk to our team.
How can a business reduce cross-border fees?
Lower fees start with measuring the total cost, not the fee line. Four practices make the biggest difference for companies that pay abroad every month.
Compare routes on the amount received, in the recipient's currency
Consolidate small payments into fewer, larger runs where the supplier allows it
Use local payouts in the destination currency to avoid intermediary banks
Declare the correct nature of each operation, so the right tax rate applies
Settlement time also has a cost: money in transit for days is money that cannot be used. Transfero's guide on how to choose an international payment provider treats total cost and settlement as part of the same decision.
How does Transfero keep the cost of cross-border payments visible?
Transfero is a financial infrastructure company that connects banking rails, blockchain networks and liquidity providers through one integration. The Transfero Payments Network (TPN) routes each payment across these rails, so a company sees one flow instead of a chain of intermediaries.
Cross-border payments with predictable 24/7 pay-outs across multiple countries
More than 180 pay-out markets with settlement in local currency
Banking rails, stablecoins and liquidity combined in a single integration
More than 9.8 million transactions processed in 2025
Questions to ask your provider about fees
What exchange rate will you apply, and how does it compare with the reference rate?
Which fees are fixed, and which depend on the amount or the route?
Can intermediary banks deduct fees from this payment?
How do you handle the OUR option end to end?
What exact amount will the recipient receive, in their currency?
Which taxes apply in the destination country, and who pays them?
Compare the total cost of your cross-border payments with our team: get in touch.
Frequently asked questions
Why did my supplier receive less than I sent?
On SWIFT payments, intermediary banks may deduct fees while the money is in transit, and the recipient's bank may charge to credit the transfer. If the payment was sent with the SHA or BEN option, those deductions fall on the recipient. A currency conversion on arrival can also reduce the final amount.
What is the difference between OUR, SHA and BEN?
They define who pays the fees on a SWIFT transfer. With OUR, the sender pays all fees. With SHA, the sender pays its own bank and the recipient pays intermediary and receiving fees. With BEN, the recipient pays everything, so the amount credited is the amount sent minus all fees.
Are stablecoin transfers free of fees?
No. A stablecoin route avoids correspondent banks, but it carries a network fee and the spreads of converting into and out of the stablecoin. In Brazil, these conversions in an international payment are FX operations under BCB Resolution No. 521, so the usual FX rules and taxes apply.
Is the exchange rate markup a fee?
In practice, yes. The markup is the difference between the rate applied and the market reference rate, and it reduces what the recipient gets just like an explicit fee. Because it is built into the rate, it rarely appears on the statement, which is why comparing the amount received is the most reliable test.
