What Is OUR (Our Charges)?
Our (our charges) is a payment instruction used in international banking to indicate who will pay the fees associated with a money transfer. When our (our charges) is selected, the sender agrees to cover all the charges related to moving funds from their bank to the recipient’s bank.
This term is most commonly used in a wire transfer, especially when sending money internationally. Because multiple banks may be involved in routing the funds, fees can arise at different stages of the transaction. Our (our charges) ensures that the beneficiary receives the full intended amount without deductions along the way.
Our (our charges) is one of the standard options used in cross-border payments to define responsibility for transfer costs.
Executive Summary
- Our (our charges) means the sender pays all transfer-related fees.
- It is commonly used in international bank transfers.
- The recipient should receive the full payment amount without deductions.
- Fees may include charges from sending, intermediary, and receiving banks.
- Our (our charges) is part of the overall fee structure of international payments.
- It is one of three main charge types, along side BEN (beneficiary pays all charges) and SHA (or Shared).
- Using our (our charges) can make payments clearer for invoices and contracts.
- It is often selected when the sender wants to avoid underpayment issues.
- Even with OUR selected, exact costs can vary depending on banking routes.
- Clear communication between sender and recipient helps avoid disputes.
How OUR (Our Charges) Works?
When someone sends money internationally, the funds often pass through more than one bank before reaching the final destination. Each bank involved may apply banking charges for processing the transaction. These can include handling fees, intermediary bank fees, and receiving bank charges.
If the sender chooses our (our charges), they are agreeing to absorb all these payment fees. The sending bank usually collects an upfront fee, and it may also attempt to cover additional costs charged by intermediary banks in the payment chain. The goal is for the recipient to receive the full transfer amount, with no deductions taken from the principal.
This arrangement is common in an international wire transfer, where the payment may travel through several institutions before reaching the beneficiary. Instructions related to our (our charges) are typically included in the payment message sent through SWIFT, the global messaging network used by banks.
Behind the scenes, the banks involved rely on predefined agreements and routing relationships to determine how costs are handled. While our (our charges) signals that the sender covers everything, the exact fee allocation can depend on correspondent banking arrangements and how each institution processes the payment.
OUR (Our Charges) Explained Simply (ELI5)
Imagine you are sending a package to a friend in another country. You go to the post office and choose the option where you pay for all shipping costs in advance. Your friend receives the package without being asked to pay anything when it arrives. That’s how our (our charges) works in banking. You cover all the delivery costs, so the other person gets the full amount without any surprise deductions.
Why OUR (Our Charges) Matters?
Our (our charges) is important because it helps ensure clarity and fairness in international transactions. In business payments, even small fee deductions can cause accounting mismatches or disputes. If a supplier expects $10,000 but receives slightly less due to bank deductions, it can create confusion and delays.
By using our (our charges), the sender takes responsibility for ensuring the recipient gets the exact invoiced amount. This is especially important in trade, professional services, and contractual payments where full settlement is required. It also improves transparency. When both sides understand who is responsible for transfer costs, there is less risk of misunderstanding. This is particularly helpful in global commerce, where different banking systems and fee practices may apply.
However, our (our charges) can be more expensive for the sender compared to other fee options. Because the sender absorbs all costs, the total fee may be higher than expected, especially if multiple intermediary banks are involved. Even so, many businesses prefer the predictability it offers.
Common Misconceptions About OUR (Our Charges)
- OUR means there will be no fees at all: Our (our charges) does not eliminate fees; it only defines who pays them. The sender still pays charges, and these can sometimes be higher than anticipated.
- The recipient is always guaranteed the exact amount: While the intention of our (our charges) is full delivery, unexpected routing or correspondent bank practices can sometimes still affect the final amount. Checking with banks in advance can reduce this risk.
- OUR is only used for large corporate payments: Although common in business transactions, individuals also use our (our charges) when sending personal funds and wanting the recipient to receive the full amount.
- All banks charge the same for OUR payments: Fee levels vary widely between banks and corridors. Understanding your bank’s pricing helps avoid surprises.
- OUR is better in every situation: Our (our charges) is useful when the sender wants to ensure full delivery, but in some cases shared or beneficiary-paid options may be more cost-effective depending on the agreement between parties.
Conclusion
Our (our charges) is a key instruction used in international banking to determine who is responsible for transfer fees. By choosing our (our charges), the sender agrees to cover all associated costs so the recipient receives the full payment amount.
This approach is widely used in global business and personal remittances where accuracy and clarity matter. While it may increase costs for the sender, our (our charges) reduces the risk of underpayment and helps keep financial transactions smooth and predictable across borders.
Further Reading
For more details, refer to SWIFT’s guide on payment instructions and their impact on international transfers.