Europeanguy Posted November 29, 2019 Share Posted November 29, 2019 When you transfer money from abroad by bank, an MT103 form is created. Depending on your transfer provider, this MT103 will have a different clause numbered 71A. - "SHA" means that the Thai bank will shave off 0.25% at a maximum of 500 Bahts - "OUR" means that you will get the full amount from the provider see https://www.moneymover.com/about/faqs/what-mt103/ Have you encountered that? Not much but the difference would pay for a meal out here where I live (Udon Thani) One of my transfer provider send me the MT03 automatically which I can keep as proof as transfers. The other one I need to request it specifically. Kind regards Bernard Link to comment Share on other sites More sharing options...
CharlieH Posted November 29, 2019 Share Posted November 29, 2019 Wrong forum - MOVED to Banking Link to comment Share on other sites More sharing options...
Sophon Posted November 29, 2019 Share Posted November 29, 2019 Yes, if you select cost code "OUR" the full amount will be credited beneficiary's account without deduction of costs. However, that doesn't mean that beneficiary bank doesn't get their fee, just that they will charge it from sending bank. This creates more work for both sending and receiving bank, and to account for this most (all?) sending banks will charge an extra fee if you select cost code "OUR". This fee will almost always be more than what the receiving Thai bank normally charges, so the total cost for a transfer with cost code "OUR" will be more than a transfer with cost code "SHA". The one (and only) situation where it makes sense to use cost code "OUR", is when you have to pay for goods or services where beneficiary will not accept a fee to be deducted from the transfer amount. But check your (sending) bank's fee structure before you do, in some cases it can turn out to be quite costly. If you are sending funds for your own account, always use cost code "SHA". Link to comment Share on other sites More sharing options...
torturedsole Posted November 29, 2019 Share Posted November 29, 2019 Quote All banks and financial institutions which make payments via SWIFT will have an MT103 for every payment, but they are unlikely to let you have them. https://www.moneymover.com/about/faqs/what-mt103/ This quote from the OP's link is patently untrue as bank to bank Swift transfers are made solely by MT202. For example if Bank of America send a payment to JPMorgan for their own account then it's 100% always a MT202 as it's between financial institutions. Quote Details of Charges (BEN / OUR / SHA) BEN is an abbreviation for beneficiary, OUR is not an abbreviation and to be taken literally as our, as in mine, and SHA is an abbreviation for shared. So BEN in Field 71A is any charges are payable by the beneficiary, OUR is any charges are payable by the remitter and SHA is any charges are shared 50/50 between the remitter and the beneficiary. This particularly website is very short on detail and quite confusing as a MT103 isn't a payment at all, it's merely a message to the beneficiary bank. The only time a MT103 is used is when the remitter sends funds to say, Bank of America, but for the account of me, torturedsole, if I held my account with Bank of America as I'm not a financial institution. But the physical payment is made by MT202. Both Swift messages (MT202 and MT103) would be released simultaneously by the remitting financial institution. The MT103 is sent directly to Bank of America informing them that they are to expect covering funds [COV] by way of the MT202 and the MT202 would be sent to the remitters correspondent bank and make its way through the intermediaries, if any, and correspondent bank of the beneficiary bank. The correspondent bank is sometimes the beneficiary bank if they clear their own currency. Link to comment Share on other sites More sharing options...
Europeanguy Posted November 30, 2019 Author Share Posted November 30, 2019 Thank you all for the useful answers. I didn't know about an MT202, I just knew about the MT103. The code 71A ("SHA", "OUR" or "BEN") does not depend on me but the UK provider (or rather the bank they make business with). I use 2 different ones to transfer UK money to Bahts and send it to my Thai bank account. One uses "SHA", the other "OUR" and so in turn they tell me it depends on the bank they are making business with and they cannot do anything about it either. Why 2 different providers? It is easy to pitch them against each other for exchange rates. It shows how much money they make when you see how far they will go to get your transaction. I also have 2 Thai bank accounts. Both charge 0.25% of the transaction when the 71A code is "SHA" capped at a maximum of 500 Bahts. So putting it altogether ... I typically make an 8,000£/ 10,00$ transfer every 3 or 4 months from my pension. So the Thai charge will be 0.25% capped at 500 Bahts, so it is a 500 bahts charge. I find the more favourable exchange rate by one the provider far outweighs this 500 Bahts charged by using him (up to 3,000 bahts on that amount of transfer). I still check it every time as the other provider which does not provoke a Thai charge is keen to beat the other. I have never explored the idea of getting a foreign currency Thai account and change the money in Thailand. I am a pensioner with plenty of time but there is a limit to my will to live. So I might be wrong but my uninformed view is that I should not bother with that. I am happy to be proven wrong. I am reluctant to say who the 2 UK providers and the 2 banks are as the moderator might find it is not acceptable in a forum like this. That would be fair enough but I would welcome the moderator opinion on how much we can say here in terms of commercial advice. Thank you all again. Link to comment Share on other sites More sharing options...
topt Posted November 30, 2019 Share Posted November 30, 2019 3 hours ago, Europeanguy said: I am reluctant to say who the 2 UK providers and the 2 banks are as the moderator might find it is not acceptable in a forum like this. That would be fair enough but I would welcome the moderator opinion on how much we can say here in terms of commercial advice. You should really have a read through some of the banking threads. People talk openly (both good and bad) about their foreign (not Thai) banks and FX providers. As examples TransferWise has had many individual threads devoted to it and there is a current one on HSBC transfer charges. I am a bit bemused why you think a moderator would find it unacceptable especially if the information was beneficial to others......... Link to comment Share on other sites More sharing options...
torturedsole Posted November 30, 2019 Share Posted November 30, 2019 3 hours ago, Europeanguy said: I am reluctant to say who the 2 UK providers and the 2 banks are as the moderator might find it is not acceptable in a forum like this. There doesn't appear to be anything in the rules that preclude you stating which banks you utilise. Link to comment Share on other sites More sharing options...
Europeanguy Posted November 30, 2019 Author Share Posted November 30, 2019 15 minutes ago, topt said: You should really have a read through some of the banking threads. People talk openly (both good and bad) about their foreign (not Thai) banks and FX providers. As examples TransferWise has had many individual threads devoted to it and there is a current one on HSBC transfer charges. I am a bit bemused why you think a moderator would find it unacceptable especially if the information was beneficial to others......... I have already been suspended a few weeks ago for alleged trolling, then reinstated when the Thaivisa manager realised with his own eyes that it was not the case (without me even raising the issue). So I am careful now. Thaivisa is very useful, I do not want to be thrown out again. The answer of the moderator should clarify their position about naming commercial entities in discussions. And you are right, useful information is beneficial to others. I do not have any objections to say who I am talking about, I have an objection to being thrown out because I did. Kind regards Link to comment Share on other sites More sharing options...
Europeanguy Posted November 30, 2019 Author Share Posted November 30, 2019 20 minutes ago, torturedsole said: There doesn't appear to be anything in the rules that preclude you stating which banks you utilise. Thank you. Just a copy of my answer to another poster on the same subject, same thread: ****************** I have already been suspended a few weeks ago for alleged trolling, then reinstated when the Thaivisa manager realised with his own eyes that it was not the case (without me even raising the issue). So I am careful now. Thaivisa is very useful, I do not want to be thrown out again. The answer of the moderator should clarify their position about naming commercial entities in discussions. And you are right, useful information is beneficial to others. I do not have any objections to say who I am talking about, I have an objection to being thrown out because I did. Kind regards Link to comment Share on other sites More sharing options...
torturedsole Posted November 30, 2019 Share Posted November 30, 2019 They may or may not answer in this thread, Europeanguy. You could also PM them. As topt stated, you could look through the banking threads as well. Link to comment Share on other sites More sharing options...
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