The three charge instructions
- OUR · sender pays
- The sender is instructed to bear transfer charges, including intermediary and beneficiary-bank charges where the service supports this arrangement.
- SHA · shared
- The sender pays the sending bank’s charges. Other applicable charges fall to the beneficiary side; “shared” does not mean a fifty-fifty split.
- BEN · beneficiary pays
- The beneficiary bears the transfer charges, including sending-bank charges. Deductions can reduce the amount received.
These describe allocation, not a fee quote. Availability and treatment depend on the bank, payment service, route and applicable rules. HSBC’s published charge-code definitions describe the three options; that historical notice is not a current tariff or a rule for every route.
A simple example of a short payment
Suppose the instruction is for 1,000 units of a currency, the sending fee is 15 and a later bank charge is 10. Under a simplified SHA example, the sender might pay 1,015 while the beneficiary receives 990. Under a supported OUR arrangement, the sender would bear the additional charge instead.
Those figures are illustrative, not market rates or a prediction. Real banks may debit charges separately, bundle them or apply a different service agreement. Ask what the quoted beneficiary amount includes.
Separate fees from currency conversion
The charge option does not select the exchange rate. Conversion by the sending bank, an intermediary or the receiving bank can affect the final amount. A transfer advertised without an outgoing wire fee can still include an exchange-rate markup.
Compare the debit currency, instructed currency and credited currency. Ask which institution converted the funds and which rate and date it used. A difference caused by conversion needs a different explanation from a deducted processing charge.
Does OUR guarantee the invoice amount?
Do not infer an unconditional full-credit guarantee from the three letters alone. Ask whether the bank offers a guaranteed full-amount service for that route, what it covers and how exceptions are handled.
For example, HSBC Egypt’s tariff notes explain that some clearing routes may not recognise OUR. That is a route-specific example, not a claim that every OUR transfer loses value.
Agree the amount before sending
- Confirm the invoice currency and the beneficiary account’s supported currency.
- Ask which charge options the service permits.
- Request the total debit and expected beneficiary credit, including known deductions.
- Agree with the recipient how any shortfall will be handled.
- Retain the quote and payment confirmation.
For an existing short payment, ask for the recorded charge instruction and a breakdown of the difference before sending a top-up. Avoid creating a second discrepancy through another transfer with the same fee treatment.
Where to look in the paperwork
An MT103 can show the charge instruction in field 71A. ISO 20022 messages use charge-bearer elements and their own codes. A customer confirmation may use plain-language labels instead. Read our MT103 guide or pacs.008 guide, then ask the bank to explain its actual instruction and entries.
UETR.io does not calculate the banks’ final fees or exchange rate. Its recorded amount should not be treated as a promise of net beneficiary credit.