SWIFT & International
Intermediary / Correspondent Bank
An intermediary bank is a financial institution that acts as a middleman between the sending bank and the receiving bank when they do not have a direct correspondent banking relationship. It is sometimes called a relay bank or third-party bank. Large global banks such as JPMorgan Chase, Deutsche Bank, and HSBC frequently serve as intermediaries for cross-border payments.
When the originating bank cannot route a payment directly to the beneficiary's bank, it sends the SWIFT message to an intermediary that holds accounts with both institutions. The intermediary debits the sender's correspondent account and credits the receiver's correspondent account, then forwards the payment instruction onward. Some complex corridors may involve two or more intermediaries, each adding processing time and fees.
Every intermediary bank in the chain can deduct a fee from the transfer amount, which means the beneficiary may receive less than expected. Knowing the intermediary bank details upfront lets you choose routing options that minimize hops and costs, and helps troubleshoot delayed or missing payments.
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