Last updated: 8 March 2021
In May 2021, United States Dollar (USD) payments sent from HSBC Bank Plc to accounts in the UK and European Economic Area (EEA) may be subject to additional processing fees from intermediary banks.
If an intermediary bank fee is charged, the beneficiary of your payment will receive less than the original amount that was sent.
What’s changing?
In January 2018, for payments using the 'SHA' charges option, HSBC Bank Plc temporarily suspended intermediary banking fee deductions on US Dollar payments to beneficiaries in the EEA and United Kingdom, which are processed via our intermediary bank, HSBC Bank USA, N.A.
In May 2021, this suspension will be lifted and payments remitted from customers of HSBC Bank Plc with charges option 'SHA' may be subject to a deduction from the principal amount1, in alignment with market norms.
US Dollar payments to beneficiaries outside of the EEA and United Kingdom are already subject to a deduction and are not affected by this change.
How do I know if I'm affected?
HSBC is divided into two UK entities; HSBC UK Bank plc and HSBC Bank plc.
If you are making a payment from HSBC Bank Plc in US Dollars, you may be affected by this change2.
You can identify your USD accounts held with HSBC Bank Plc using the Account information service in HSBCnet. USD accounts with the ‘400515’ sort code, or an IBAN beginning with ‘GBxxMIDL’ may be impacted.
US Dollar payments to beneficiaries outside of the EEA and United Kingdom are already subject to a deduction and are not affected by this change.
What is an intermediary banking fee?
An intermediary bank fee is a fee deducted from the original payment amount for services provided by an intermediary bank, serving as an agent to facilitate the international transfer and settlement of funds. In some instances, there may be multiple intermediary or correspondent banks that take deductions from the payment.
Find out more
If you have any further questions, please contact your local HSBC representative.
1 Standard payment processing fees and charges apply and may vary by country/region. To learn more about fees and charges, please contact your bank representative.
2 US dollar payments from HSBC Bank plc by accounts denominated in other currencies may also be subject to deductions.