Lifting fee definition
/What is a Lifting Fee?
A lifting fee is the transaction fee charged to the recipient of cash transferred through a wire transfer, which the recipient's bank or an intermediary bank imposes for handling the transaction. The term also applies to foreign bank processing fees, which may be applied to a variety of other financial transactions besides a wire transfer. Some banks charge lifting fees to recipients that are clearly excessive, in comparison to the service performed.
Since it is difficult to determine in advance the amount of a lifting fee that will be charged, the agreed amount of a transfer may cause confusion between the payer and payee, since the payee is clearly not receiving the expected amount.
Lifting Fee Best Practices
Before setting up an account at your bank, be aware of its fee structure. This structure may include a lifting fee for received wire transfers. If you expect to receive a large number of wire transfers, it may make sense to set up your account with a different bank, or to negotiate with the bank to delete this fee.