Payment Fees – The Difference Between BEN, OUR and SHA

I have received a couple of recurring questions about payment fees, specifically the difference between BEN, OUR and SHA. So, lets get straight to it…

Payment Fees / Transaction Charges

The sending bank and receiving bank in a payment transaction may charge a fee for processing the payment. Within each payment specific codes are used by the sending bank to understand how any payment charges or payment fees should be handled.

If you’re sending money abroad, you will be asked how you want any transaction fees to be managed. Here is what you need to know.

The Difference between BEN, OUR, SHA

• BEN (BENeficiary) –
  • The Payee (recipient of the payment) will incur all of the payment transaction fees
    • Typically, the recipient will receive the payment minus the transfer charges
  • The Payer (sender of the payment) will not pay any payment fees
• OUR –
  • The Payer (sender of the payment) will bear all of the payment transaction fees
    • Normally you will be billed separately for the payment transfer
  • The Payee (recipient of the payment) will not pay any payment fees,
    • The beneficiary will receive the full amount of the payment
• SHA (SHAred) –
  • The Payer (sender of the payment) will pay all fees charged by the sending bank
    • You will be billed separately for the payment transfer
  • The Payee (recipient of the payment) will pay all fees charged by the receiving bank
    • The recipient will receive the payment minus any correspondent /intermediary fees

Where to Indicate Payment Fees

If you’re submitting the payment via an App, internet banking or a paper form you’ll select one of the above options from a drop down list. But if you’re generating the payment within your ERP system, here’s where you specify this information:

MT101 – Field 71A: Detail of Charges

In the MT101, specify the appropriate value in field 71 (detail of charges) as follows:

• :71A:BEN
• :71A:OUR
• :71A:SHA

PAIN.001 – Charge Bearer: <ChrgBr>

In the PAIN.001, specify the appropriate below value in the Charge Bearer <ChrgBr> tag

• CRED –
  • The Payee (recipient of the payment) will incur all of the payment transaction fees
• DEBT –
  • The Payer (sender of the payment) will bear all of the payment transaction fees
• SHAR  –
  • The Payer (sender of the payment) will pay all fees charged by the sending bank
  • The Payee (recipient of the payment) will pay all fees charged by the receiving bank
• SLEV –
  • As above, (same as SHAR) – the only option available for SEPA credit transfers