When wiring funds internationally (for example, from a European bank into your AngelList U.S. funding account), you may notice that the amount received is slightly lower than what you sent. This difference is usually due to intermediary/correspondent bank fees and is not a fee charged by AngelList.
Why does this happen? International wires typically pass through one or more “intermediary” or “correspondent” banks before reaching the final U.S. account. These banks may deduct a fee along the way, reducing the final amount received. These deductions happen outside of AngelList’s control.
Who pays the fees? How fees are allocated depends on the instructions chosen when you set up your wire with your bank. The most common options are:
- SHA (Shared): The sender pays their bank’s fees, and the recipient covers any intermediary or receiving bank fees. This is the most common default for international wires.
- BEN (Beneficiary): The recipient covers all fees, including the sending bank’s and intermediaries. The transfer amount is reduced the most under this option.
- OUR (Sender): The sender covers all fees. The beneficiary should receive the full transfer amount, though this usually comes with a higher upfront cost at the sending bank.
How to avoid underpayment issues with your wire to AngelList: If you want to ensure that AngelList receives the full subscription amount, we recommend asking your bank to send the wire using the OUR fee option.
- Confirm with your bank which fee instruction they are using (SHA, BEN, or OUR).
- If using SHA or BEN, consider sending a slightly higher amount to account for possible intermediary fees.