Why did the recipient get less in an international transfer? Fees, FX and tracing

Record the invoice amount, instructed transfer amount, any separately charged sender fee, credited amount, account currency, date and payment reference. Retain the receipt, statement and fee notices. If currencies differ, obtain the actual conversion rate and converted amount; a generic online rate does not establish the contractual result.

Map the route: sender → sending provider → any intermediary → receiving provider → recipient balance. A domestic collection account or payment request may still form part of an international service. If the credit is absent rather than smaller, use the pending-payment process instead of assuming deductions.

Hypothetical USD invoice: 1,000. The sender instructs USD1,000 and separately pays USD10, so the sender debit is USD1,010. A documented intermediary deduction is USD15 and a receiving charge USD5, leaving USD980. The recipient shortfall is USD20; total charges across both parties are USD30. Do not count the separately paid USD10 again as a deduction from the USD1,000 instruction.

If USD980 is then converted at an illustrative 0.90 EUR per USD, the result is EUR882 before any separate conversion charge. Comparing EUR882 directly with the USD invoice creates a meaningless “118” gap. Record currencies separately. If no documents explain the USD20, leave it unexplained and investigate; do not manufacture a matching fee.

Read the specific fee instruction and terms. Wise’s Global Currencies documentation explicitly warns that correspondent deductions can remain even with OUR or SHA. That example disproves a universal full-delivery promise, not every bank’s contractual guarantee. Ask your provider what it actually undertakes for this route.

Send the initiating institution the payment reference, instruction amount and evidence of the lower credit; ask which deductions or conversions it can identify and what investigation it offers. Ask the recipient institution about its own incoming charge or conversion. Use official secure channels and redact unrelated account history. A support investigation is not a guaranteed refund or a reason to send another full transfer.

Once the facts are established, check the contract’s lawful allocation of fees or withholding. If the parties agree a corrective payment, give it a separate reference linked to the invoice and consider the new transfer’s costs. Preserve original records and dated corrections. For future invoices specify currency, approved beneficiary details, fee allocation and reconciliation contact. Country-specific tax or legal treatment requires qualified advice.