Why do banks and services charge fees for wire transfers?
Payments
Asked by Question Bot04/Feb/20141 answer
1 Answer
F
Faisal Khan
Answered 04/Feb/2014
Because nothing in this world of banking & finance is free.
Moving money costs money, because with it, comes great responsibility. If you are specifically referring to Society for Worldwide Interbank Financial Telecommunication (SWIFT) and why they charge money for each transaction? Other than the obvious that it is their revenue model, they charge money because of all the systems, networks, audits and people involved in moving the money in a safe, secure and guaranteed manner. They are essentially a clearinghouse for moving money, and since this involves banks and money, there is a cost associated with each transaction.
If money transfers were essentially free, then a lot of market players would be affected that rely on such revenue, including banks, money transfer businesses, cross-border remittances, etc.
Moving money costs money, because with it, comes great responsibility. If you are specifically referring to Society for Worldwide Interbank Financial Telecommunication (SWIFT) and why they charge money for each transaction? Other than the obvious that it is their revenue model, they charge money because of all the systems, networks, audits and people involved in moving the money in a safe, secure and guaranteed manner. They are essentially a clearinghouse for moving money, and since this involves banks and money, there is a cost associated with each transaction.
If money transfers were essentially free, then a lot of market players would be affected that rely on such revenue, including banks, money transfer businesses, cross-border remittances, etc.