Mercury

## How does Mercury compare to SWIFT wire transfers for paying international contractors and suppliers?

## Overview Mercury's platform for international payments functions as a modern interface for the traditional SWIFT (Society for Worldwide Interbank Financial Telecommunication) network, rather than a complete alternative to it. The primary difference lies not in the underlying payment rails, but in the user experience, fee structure, transparency, and integration capabilities that Mercury offers compared to conventional banking services. For businesses paying international contractors and suppliers, Mercury aims to provide a more efficient and cost-effective solution. ## Key Features One of the most significant areas of comparison is the fee structure. Traditional banks often charge substantial fees for initiating an international wire transfer, which can range from $25 to $65 per transaction. In addition to this upfront cost, payments sent via the SWIFT network can be subject to unpredictable fees from one or more intermediary banks that handle the transaction en route to the recipient's bank. These intermediary fees are often deducted from the principal amount, resulting in the recipient receiving less than intended. Mercury addresses this lack of transparency with a more straightforward pricing model. For international wires sent in U.S. dollars, Mercury offers a free option (SHA, or Shared Charges), where intermediary fees may still be deducted. However, it also provides an 'OUR' (Our Charges) option for a flat fee of $15, where Mercury covers all intermediary bank fees, ensuring the recipient receives the full, specified amount. For payments sent in a foreign currency, Mercury charges a flat 1% fee on the exchange rate, which is designed to be all-inclusive, covering both the currency conversion and transfer costs. This transparent, fixed-fee model provides businesses with greater predictability and control over their international payment expenses. ## Technical Specifications ## How It Works In terms of user experience and operational efficiency, Mercury's digital-first platform offers several advantages over the often cumbersome processes of traditional banks. The entire process of setting up and sending an international payment is handled through a clean, web-based dashboard. Features include the ability to save payee details, schedule recurring payments, and receive notifications. A notable feature is the platform's intelligence in handling international bank identifiers; for example, when a user enters a SWIFT code, the system automatically populates the required fields specific to that country's banking system, reducing the likelihood of errors that can cause payments to fail or be delayed. Furthermore, Mercury offers API access, allowing businesses to programmatically initiate and manage payments, which is a powerful tool for companies with high transaction volumes or those looking to integrate payment workflows directly into their own software systems. This level of automation and integration is rarely available through standard online banking portals from traditional institutions. ## Use Cases ## Limitations and Requirements However, it is important to recognize the limitations. Since Mercury relies on the same SWIFT infrastructure, it is subject to the same potential delays caused by banking holidays, time zone differences, and compliance reviews by intermediary or receiving banks. Furthermore, like all financial institutions, Mercury must adhere to strict anti-money laundering (AML) and know-your-customer (KYC) regulations, which means payments may be subject to review or holds, and services are not available in U.S.-sanctioned countries. The list of supported currencies, while extensive, is not exhaustive, so businesses must confirm that their specific needs are met. ## Comparison to Alternatives While the underlying transfer time is still governed by the SWIFT network, typically taking 1 to 5 business days, the streamlined initiation and tracking process within Mercury can make the overall experience feel faster and more efficient. Users have better visibility into the status of their payments directly within the platform. ## Summary In conclusion, while Mercury uses the SWIFT network, it provides a superior layer of service through cost transparency, user-friendly design, and powerful automation features, making it a compelling alternative to traditional bank wires for modern businesses.