Annex: Selecting quotes when there are multiple UPSs

Most countries have a single IPS, operating in a single currency. However in Europe and the United States (in particular) there may be multiple IPSs in a single country. (For example, a PSP in Spain may be reachable through TIPS, RT1 or IberPay.)
As soon as two or more IPSs in the same country connect to Nexus, the following complications could arise.

Scenario: Selecting quotes when there are >1 UPSs in the Source Country

This complication would arise where:
  • There is more than one IPS/UPS in the Source Country
  • The Source PSP is a member of one of the UPSs (UPS-A), but not the other (UPS-B)
  • Some FXPs hold settlement accounts in one UPS (UPS-B) but not the other (UPS-A)
    • These quotes are not available to the Source PSP, because they cannot make a payment to the FXP’s account in UPS-B
Recommended approach:
  • The PSP needs to check that it only selects a quote where the Source UPS Id (provided in each quote) is for a UPS that the PSP is a member of (eg UPS-A in the example above).
This complication can be addressed in Nexus. Nexus is aware of which UPS each PSP has access to, so the FX Service can be adapted to only return quotes that the Source PSP can actually use. This feature would only be required once two UPSs in the same country join Nexus, and so it was not developed in the proof-of-concept.

Scenario: Selecting quotes when there are >1 UPSs in the Destination Country

This scenario arises when:
  • There is more than one UPS in the Destination Country (eg UPS-C and UPS-D)
  • Some FXPs are members of one UPS (UPS-C) but not the other (UPS-D)
  • The Destination PSP is a member of one UPS (UPS-D) but not the other (UPS-C)
  • The Source PSP therefore needs to select a quote from an FXP that is a member of UPS-D
The challenge is that:
  • In the recommended user experience, the Source PSP should show the Sender the exchange rate before the Sender is asked to provide addressing details for the Recipient
  • However, the Source PSP will only know the Destination PSP after addressing details have been provided by the Sender
Therefore the preferred quote may no longer be applicable (for example, if the preferred quote selected above is for an FXP that is a member of UPS-D but not UPS-C).
Recommended approach
If the UPSs element contains only one UPS, the PSP can display the preferred exchange rate to the Sender with the message that this rate is secured for at least 10 minutes (or words to that effect).
However, if the UPSs element contains more than one UPS, the PSP should instead display the message that “This rate is provisional and will be confirmed once the Recipient’s PSP is known” (or words to that effect).
  • After the Source PSP calls the GET /creditors/ API operation, they should review the /CdtrInfRspns/PSP/RchblUPSs element for the UPS Ids of the UPS(s) in which the Destination PSP is reachable.
  • If the preferred quote’s DestinationUPSId is not found in the /CdtrInfRspns/PSP/RchblUPSs element, the Source PSP will need to select another quote. (It is advisable to call the GET /quotes/ API operation again to get the latest rates.)
  • The PSP can now show the Sender the new quote, this time as “Guaranteed for 10 minutes”.