Principal protection
Overview
Intermediary banks often process international wires before they reach their intended recipient. These banks may deduct processing fees from the amount of the wire. In the past, we have used a mix of different models to handle international wire fee coverage, and some wires have had their fees covered, while others have not. To help prevent you from paying unintended fees, we now offer a principal protection option at $15 per outgoing wire.
Without optional principal protection
We send international wires using the ISO 20022 format and with the CRED code—equivalent to the OUR code in the MT format.
With optional principal protection
Wires sent with principal protection are sent with the DEBT charge bearer code—equivalent to the SHA code in the MT format. Principal protection is a paid service that protects an outgoing international wire from reductions due to correspondent banking fees. The service guarantees that the beneficiary bank receives the full amount.You can elect principal protection for any international wires sent in USD, including wires funded from either a Brex business account or an external bank account.
When to use principal protection
Principal protection is completely optional. It’s meant to help protect you against unanticipated fees, which can range up to $40 or $50. If you know that the bank you are sending money to does not charge fees, then principal protection may not be necessary. You can still send a wire to 100+ countries with no hidden fees, regardless of your choice.
Using principal protection
Any international wire sent in USD can be marked for principal protection, including wires funded from either a Brex business account or an external bank account. However, by default, international wires will be sent without principal protection unless you elect to add it. Once available, if you elect principal protection for an international wire, you’ll see an invoice under Company Settings > Billing on a monthly basis. You can pay these invoices via autopay using either a Brex business account or a verified connected bank account.