Improving rates for larger transactions
This page relates only to third-party FX Providers.
For Source PSPs that provide their own FX, a different process applies. See Payment setup for PSPs who provide their own FX for details.
Tier-based improvements for larger transactions
In Nexus a specific FXP may offer better rates for larger transactions. This works as follows:
For each specific Source Currency, the FXP may define a number of “tiers” at which better rates apply.
For each tier, the FXP will define how much the base rate (as provided in the POST /rates/ API) must be improved, in basis points.
For payments smaller than the lowest tier, the base rate (provided when the FXP submits a rate to the
POST /rates/API) applies.
WORKED EXAMPLE: Tier Improvements
In this example, the Source Currency is Euros. The maximum payment permitted through the TIPS payment system is EUR 100,000. FXP-A may therefore choose to set the following tiers:
FXP Id
SOURCE CURRENCY
TIER THRESHOLD (Minimum transaction size at which the improvement applies)
IMPROVEMENT in basis points (applied to the base rate in the FXP’s quote)
FXP-A
EUR
25,000
50
FXP-A
EUR
50,000
100
FXP-A
EUR
75,000
150
This means that for a payment of 50,000, the rate will be improved by 1%, and so the amount received by the Recipient will be 1% greater than it would have been with the base rate.
If FXP-A quoted the base rate for EUR>SGD at 1.500, then the improvement would be calculated as:
Improved rate = Base Rate * (1 + ((Improvement in basis points) / 10000)
= 1.5000 * (1 + (100 / 10000))
= 1.5000 * (1 + 0.01)
= 1.5000 * (1.01) = 1.5150
Note that for transactions below the 50,000 threshold, FXP-A’s base rate, as provided in the initial POST /rates/ API call, will apply.
Tiers only need to be set once by the FXP, and will continue to apply for that FXP until the FXP updates or deletes the tiers.
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