Skip to content
Last updated

Incoming & Outgoing Payment Fees and Settlement Timings

This page explains how incoming and outgoing payments work at Bermuda Commercial Bank (BCB), including fee handling, cut-off times, and expected settlement timelines.

1. IBAN vs. Account Numbers

  • Bermuda does not use IBANs for inbound payments.
  • Clients must use:
    • Account number
    • BIC/SWIFT code
  • BCB can send payments to destinations that use IBAN (e.g., EU), but incoming payments are always received via account number and SWIFT.

2. Fee Handling on Incoming Payments

There are two primary scenarios for how fees are applied to incoming funds:

ScenarioDescriptionFee ApplicationAmount Credited
Straight-Through Processing (STP)Payment arrives automatically through correspondent banksFees are deducted by intermediariesNet of fees (e.g., $100 sent → $94 credited)
Manual PostingPayment is manually posted by BCBBCB may credit the gross amount and debit the fee separatelyGross amount, followed by fee debit

Because intermediary/correspondent banks may apply their own charges, the credited amount may not match the amount sent.

To minimize unexpected deductions, remitters should use the following SWIFT charge code:

  • OUR (DEBT): Remitter pays all fees.
  • Not SHA (SHAR) or BEN (CRED).

With increased adoption of ISO 20022, fee details will become more transparent to remitters.

3. Payment Cut-off Times and Settlement Expectations

International Payments

CurrencyOutgoing Cut-off (AST)Typical Value DateIncoming Cut-off (AST)
USD2:30 PMSame day4:00 PM
CAD3:00 PM1 business day4:00 PM
EUR12:30 PM2 business days4:00 PM
GBP12:30 PM2 business days4:00 PM
AUD11:00 AM2 business days4:00 PM
NZD11:00 AM2 business days4:00 PM
NOK11:00 AM2 business days4:00 PM
Other currencies11:00 AM2 business days4:00 PM

Settlement times may vary due to correspondent routing, time zones, and regulatory checks.

Domestic (SWIFT)

CurrencyOutgoing Cut-off (AST)Value DateIncoming Cut-off (AST)
BMD12:30 PMSame day4:00 PM
USD12:30 PMSame day4:00 PM

Domestic (ACH)

CurrencyOutgoing Cut-off (AST)Value DateIncoming Cut-off (AST)
BMD / USD (local banks)3:15 PMSame day3:15 PM

4. Holidays and Delays

  • On Bermuda and international public holidays, cut-off times are earlier, and value dates roll forward to the next business day.
  • Payments to certain jurisdictions may be delayed or incur extra charges due to sanctions or additional checks.

5. Typical Settlement Timeframes by Corridor

CorridorTypical SettlementNotes
Domestic (Bermuda)Same daySWIFT or ACH
United StatesSame or next business dayDepends on remitting bank
Europe1–2 business daysIBAN destinations
Asia (e.g., China)1–3 business daysSubject to FX controls

6. Key Points to Remember

  • Incoming payments may be net of fees depending on how the remitter sets up their payment.
  • To avoid intermediary deductions, remitters should use OUR charges.
  • Domestic payments typically settle same day; international payments typically settle in one to three business days.
  • Early submission is required on holiday periods to meet value dates.
  • Fee transparency will improve as ISO 20022 adoption expands.

Integration Note

Developers should account for potential net settlement when reconciling expected inbound payment amounts. Integrations should not assume that the credited amount will always equal the amount sent.