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Money Transfer Terms


Beneficiary Financial Institution
The financial institution that receives the wire transfer directly or through an intermediary financial institution and makes the funds available to the beneficiary.

Cover Payment
Is a wire transfer that combines a payment message sent directly by the remitting bank to the beneficiary bank with the remittance funding instruction (the cover), through one or more intermediary financial institutions.

Cross-border Wire Transfer
A cross-border transfer is any transfer of funds where the remitting and beneficiary
institutions are located in different jurisdictions.

Currency Market
The market which allows people around the world to buy, sell, exchange and speculate on different currencies.

Exchange or Conversion or Live Exchange Rate, FX or Forex
The rate at which you buy another currency i.e. the rate at which one currency can be exchanged
for another.

Foreign Exchange Conversion
Converting one country's currency into another country's currency. Based on exchange rates, so a person may receive less or more value for the currency converted. This can be
determined by looking at the current exchange rate for the country's currency.

Intermediate or Correspondent banking
Intermediate banking is when one bank uses another bank's services. Large international banks typically act as an intermediate for thousands of other banks around the world. An intermediate
bank can conduct business transactions, accept deposits, and gather documents on behalf of another financial institution. Intermediate banks are more likely to be used for business in foreign countries and act as a domestic bank's agent abroad.

Intermediate or Correspondent Bank Fee
The fee payable to the intermediate bank, to act as a middle-man for transferring funds from the remitter's account to the beneficiary account.  The charges may be borne by the remitter or the beneficiary, depending on the charge type selected.

Transfer Fee
The fee charged by the remitting bank for transferring funds from the remitter's account to the beneficiary account.  The charges may be borne by the remitter or the beneficiary, depending
on the charge type selected.