# 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:

| Scenario | Description | Fee Application | Amount Credited |
|  --- | --- | --- | --- |
| Straight-Through Processing (STP) | Payment arrives automatically through correspondent banks | Fees are deducted by intermediaries | Net of fees (e.g., $100 sent → $94 credited) |
| Manual Posting | Payment is manually posted by BCB | BCB may credit the gross amount and debit the fee separately | Gross 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

| Currency | Outgoing Cut-off (AST) | Typical Value Date | Incoming Cut-off (AST) |
|  --- | --- | --- | --- |
| USD | 2:30 PM | Same day | 4:00 PM |
| CAD | 3:00 PM | 1 business day | 4:00 PM |
| EUR | 12:30 PM | 2 business days | 4:00 PM |
| GBP | 12:30 PM | 2 business days | 4:00 PM |
| AUD | 11:00 AM | 2 business days | 4:00 PM |
| NZD | 11:00 AM | 2 business days | 4:00 PM |
| NOK | 11:00 AM | 2 business days | 4:00 PM |
| Other currencies | 11:00 AM | 2 business days | 4:00 PM |


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

### Domestic (SWIFT)

| Currency | Outgoing Cut-off (AST) | Value Date | Incoming Cut-off (AST) |
|  --- | --- | --- | --- |
| BMD | 12:30 PM | Same day | 4:00 PM |
| USD | 12:30 PM | Same day | 4:00 PM |


### Domestic (ACH)

| Currency | Outgoing Cut-off (AST) | Value Date | Incoming Cut-off (AST) |
|  --- | --- | --- | --- |
| BMD / USD (local banks) | 3:15 PM | Same day | 3:15 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

| Corridor | Typical Settlement | Notes |
|  --- | --- | --- |
| Domestic (Bermuda) | Same day | SWIFT or ACH |
| United States | Same or next business day | Depends on remitting bank |
| Europe | 1–2 business days | IBAN destinations |
| Asia (e.g., China) | 1–3 business days | Subject 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.