What happens to the fees in "SHA" payment convention?

In the "SHA" payment convention, which stands for "shared," the fees associated with a transaction are divided between both parties involved. This means that each party is responsible for the fees that their respective banks or financial institutions charge. For example, the sender pays for their bank's fees, while the receiver covers their own bank's fees. This approach allows for transparency, as both parties are aware of the costs they will incur, and it is commonly used in international wire transfers.

The division of fees is distinct from other conventions, where one party may bear all costs, or fees may be waived entirely for specific types of transactions. Understanding how fees are distributed in different payment conventions is crucial for effective financial planning and negotiation in international transactions.