A sender bank is the financial institution that debits or transmits funds on behalf of the payer at the start of a bank payment. It may also be called the originating or ordering institution, depending on the rail.
What does the sender bank do?
It validates the instruction and authority, checks available funds, applies required controls, creates the payment message and sends it into the relevant network or correspondent route.
Sender bank vs. intermediary bank
The sender bank serves the payer side. An intermediary bank passes the payment between institutions when no direct route exists. Each can apply separate processing and fees.
Which information does it need?
- Payer account and authority
- Beneficiary name and account
- Receiving-bank routing details
- Amount and currency
- Payment purpose and reference
- Intermediary instructions where required
Does debit prove delivery?
No. A debit or sent status shows that the sender side acted, not that the recipient received settled funds. Track the payment through receiving and reconciliation evidence.
What should the sender retain?
Keep the approved instruction, bank reference, timestamps, fees, exchange rate where relevant, status updates and any repair or return messages.
