FX transaction fees

Fx fee is calculated in a different way because the Exchange Rate billing fee is involved in the calculation. The cost of an FX transaction involves two billing products: Swift out and Exchange Rate billing fees

FX transaction fee = Swift out billing fee + Exchange Rate billing fee

Definition of Terms

• Exchange Rate Billing Fee: A fee set by the Customer in the Admin Portal to charge users an FX service fee on all foreign exchange (FX) transactions.
• Swift Out Fee: Applicable for transactions between accounts of different users, covering international payment network costs.
• Swift In Fee: Charged when receiving international funds, applicable to transactions between different users.

Transactions Between Own Accounts

When conducting an FX transaction between accounts belonging to the same user:

Billing Fee Display

• The billing fee will be displayed to the user in the currency of the outbound account.
• Example: If exchanging GBP to EUR, the billing fee is shown in GBP.

Billing Fee Calculation

Billing Fee = Exchange Rate Billing Fee

(No additional Swift transfer fees apply.)

Fee Application

• The fee is charged directly to the outbound account at the moment the FX transaction is executed.

Destination Account Fees

• The destination account does not incur any charges upon receipt of the exchanged funds, as the transaction is internal between accounts of the same user.

Transactions Between Different Users

When conducting an FX transaction between accounts belonging to different users:

Billing Fee Display

• The billing fee is displayed to the user in the currency of the outbound account.
• Example: If exchanging GBP to EUR, the billing fee will be shown in GBP.

Billing Fee Calculation

Billing Fee = Exchange Rate Billing Fee + Swift Out Billing Fee

Fee Application

• The outbound transaction user is charged the billing fee at the time of transaction execution.
• Collected fees are credited directly into the Customer's Collection Account, maintained in the same currency as the billing fee.

Destination Account Fees

• Upon receipt of the exchanged funds, the destination account (belonging to another merchant) will incur an Swift In Billing Fee in the currency of the destination account, consistent with standard inbound payment billing procedures.

Examples using different types of Exchange Rate Billing fees:

• The amount to send is €10, the fixed fee is €25, the variable fee is 0.1%, and the minimum and maximum fees are €0; therefore, the variable amount for SWIFT is:
• Using previous formula we get that SWIFT out fee = Fixed fee + Sent amount_Variable = €25+ €10_0.1 = €25.01
• Now we calculate the exchange rate product the same way as for other products but using the fx rate received from our FX provider instead of the tx amount and skipping the last step (summing the fixed fee). Let’s suppose it just has a 0.5% variable fee. So, supposing fxRate = 0.8494, so the exchange rate fee = (£0.8494*0.5) / 100 = €0.004247
• Final exchange rate fee = Exchange rate fee sent amount + Exchange rate fixed fee = 0.004247 €10 + 0= €0.04247
• Now we add up SWIFT out + final exchange rate. Result: 25.01€ + 0.04247 = 25.05€