Banking
Correspondent bank
A correspondent bank is an intermediary that processes transactions on behalf of another bank, typically where the two institutions have no direct relationship. International wire transfers often pass through one or more correspondent banks, each of which may deduct a fee.
In plain terms: A middleman bank your money passes through on the way abroad.
Why it matters
The reason an international transfer arrives short of the amount sent. Where the recipient must receive an exact figure, the sender needs to specify who bears the charges rather than assuming.
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