Published on
September 30, 2021

New Feature: Choose Your Settlement Method

min read
Completion Progress

We realize every business has a unique set of needs and goals. Here at Wallex we’re always excited to offer our customers additional ways to make payments. Wallex customers can now specify exactly how they want their payments to be routed and settled via the two types of transfers, Local Channels and SWIFT Network.

Here we’ll cover both types of transfers and when to use each one.


Local channel is a settlement method to transfer money into a foreign bank account and typically involves an intermediary organization or financial institution which operates between the originator and the receiver.

A SWIFT transfer is an electronic transfer of money in which international payments are directly sent from one bank to another via the SWIFT network¹.

Customers can now indicate their payment channel preferences by choosing which settlement method and charge type they would like to use.

How does it work?

Sending money through Local Channels

If your company has overseas vendors, suppliers or staff and you need them to receive your payments in full while you incur far fewer costs, then settling your transactions through Local Channels would be a great choice for you. Here’s how to settle your payments using Local Transfers.

On your Wallex Dashboard, click on Send Money then input the funding currency and destination currency, also the amount that you want to pay or for your beneficiary to receive.

  • Choose the beneficiary from your list or add a new one.
  • Choose Local Channels to settle your payments using Local Transfers.

Wallex works with many local banks and payment service providers to create a well-established local bank transfer network, effectively creating a system where your payments can cost up to 60% cheaper and up to 4x faster than alternatives. In addition, these payments are often processed in real-time with the highest security standards.

Sending money through SWIFT Network

If you prefer to settle your transaction via SWIFT Network, Wallex is also able to accommodate it. In this case, you can choose the type of charges, whether you want to split the fees between you and your beneficiary, or if you want to bear all the associated fees.

After adding your beneficiary, opt for SWIFT Network. After that, you can choose if you want to bear all the transaction fees (OUR) or share the fees with your beneficiary (SHA)

SHA: Charges are shared

Shared fees effectively mean that you will only bear the remitting bank’s charges while any correspondent/intermediary bank charges as well as the receiving bank’s charges are borne by your beneficiary. Therefore, your beneficiary may not receive the payment amount you intended in full as these additional bank charges will be deducted from your payment amount along the way.

This is the most common type of charge, where each party bears their respective charges.

OUR: Charges are borne by the Remitter

As the remitter, you will bear all of the transaction fees and charges associated with the payment which includes the remitting bank’s charges, any correspondent/intermediary bank charges, as well as the receiving bank charges. These charges will be reflected as a total sum as Bank Charge on our platform and it will be on top of the Remittance Amount and Wallex Fee payable in your Payment Instruction.

Selecting this option safeguards you against short payments made to your institution.

After choosing which settlement method you want to go with, you will be able to see the details of your transaction, including the fees, etc.

When to choose Local Channels or SWIFT?

The difference between sending money through Local Channels and SWIFT is the role of the network or intermediary. SWIFT utilizes a direct link between the banks on both sides of the transfer. While local bank transfers can be completed at a relatively low cost, international wire transfers tend to carry hefty fees. While sending money through the SWIFT Network tends to be more expensive than Local Channels, they are more reliable and traceable.

Does that mean Local Channels are better? Not always!

Local Channels is recommended if:

  • You require your beneficiary to receive in full
  • You want to pay the smallest amount of fees possible

SWIFT Networks is recommended if:

  • You require a MT103 (which is a globally-accepted Proof of Payment)
  • You need to be able to trace, recall or amend your payments (fees will apply)

Learn more about the difference between Local vs SWIFT.

Why is this important for you?

1. More autonomy

Based on their needs and desired outcome, customers can now have the flexibility to choose whichever payment channels suit their payment best.

Need MT103? Go for SWIFT.

If you don’t want your beneficiary to pay any fees, opt for OUR as a charge type.

2. More transparency

Now customers can clearly see upfront the actual fees for their payments based on the payment channel selected.

Selected Local? See local fees only.

Selected SWIFT-OUR? See total OUR fees only.

Simplify your cross-border payments with Wallex

Wallex uses an intelligent routing system that deploys Local transfers or SWIFT² depending on a combination of factors like urgency of transaction, amount, currency corridor amongst many others.

Businesses of all shapes and sizes use a Wallex business account to make and receive cross border payments, hold balance in and convert funds in over 46 currencies. With Wallex, our clients can efficiently plan, manage and hedge their currency needs all from one secure online platform.
If you would like to know more about how Wallex can help your business, visit to schedule a demo.

² Wallex enables customers to perform SWIFT transfers via our network of banking partners.

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