What does the code "BEN" indicate in charging conventions?

The code "BEN" indicates that the beneficiary is responsible for paying all fees related to the transaction. This charging convention is significant in payment operations as it clarifies who bears the costs associated with processing and handling the payment.

When the "BEN" code is used, it implies that the fees incurred during the payment process will be deducted from the total amount that the beneficiary receives, allowing the remitter (the party sending the payment) to send the full amount without worrying about deductions for fees. This is particularly important in international transactions where fee structures may vary significantly, ensuring transparency in the costs involved for the beneficiary and allowing the remitter to have a clear understanding of what the recipient will actually receive.

This understanding is vital for both parties in a transaction and can influence decisions about payment methods, the choice of financial institutions, and overall transaction planning.