Fees

Fees (Deducted)

The Nexus scheme specifies a number of requirements around the fee model for Nexus participants. This includes the type of fees that can be charged by Nexus participants and whether these fees can be collected as a deduction from the value of the payment, or must be separately invoiced to the participant in question.

Only the Source PSP and Destination PSP are permitted to make a deduction from the value of the payment (a "Deducted Fee"). All other participants must invoice each other for the relevant fees that they charge (an "Invoiced Fee").

The following features need to be considered when the Source PSP prepares the pacs.008 payment instruction:

Source PSP Fees

• The Source PSP may optionally charge an “Invoiced Fee” to the Sender, which should be separately debited from the Sender’s account and appear as a separate line item on the Sender’s account statement. This fee must be made visible to the Sender before they confirm that they wish the payment to go ahead.

  • The level of the Source PSP Invoiced Fee is not defined by the Nexus Scheme and is at the sole discretion of the Source PSP. There is no cap.

• The Source PSP may also charge a “Deducted Fee” to the Sender

  • The Source PSP deducts this fee by debiting more from the Sender’s account than it transfers to the Source SAP. This fee is thus included in the amount debited and not explicitly visible to the Sender.

• The level of the Source PSP Deducted Fee is not defined by the Nexus Scheme and is at the sole discretion of the Source PSP.

• The Source PSP Deducted Fee must be recorded in the pacs.008 payment instruction, in the Charges Information block.

Destination PSP Deducted Fee [Creditor Agent Fee]

• The Destination PSP must not charge an “Invoiced Fee” to Recipient or any other participant.

  • Doing so would break the principle that the Sender must know exactly what the Recipient will receive after all fees.

• The Destination PSP must charge a “Deducted Fee” by crediting less to the Recipient’s account than the Destination PSP received from the Destination SAP.

  • The formula for calculating the Destination PSP Deducted Fee is set in the Nexus Scheme Rulebook and is consistent for all countries and corridors

  • The fee will be calculated by Nexus and provided to the Source PSP in the response to the GET /quotes or GET /fees-and-amounts API operation

  • The Source PSP will include the value of the Destination PSP fee (as calculated by Nexus) in the pacs.008 payment instruction - see Charges Information.

  • The Destination PSP must charge the exact amount as specified in the pacs.008 payment message (as recorded in the Charges > Amount element for the Creditor Agent – See Charges Informationfor details).

    • The Destination PSP must not recalculate the Destination PSP. (Doing so could lead to a rare edge case in which the amount credited to the Recipient will differ from the amount that was shown to the Sender; this edge case can occur if the scheme-wide Destination PSP Deducted Fee formula is revised at midnight a specific date, and a payment is initiated by the Source PSP just before midnight but processed by the Destination PSP using the new formula after midnight.)

  • The Destination PSP may or may not disclose the Destination PSP Deducted Fee to the Recipient.

This fee is described in some places as a Creditor Agent Fee, as it is charged by the Creditor Agent (Destination PSP).

Calculating and recording the deducted fees in the payment instruction

• The Source PSP must include the Source PSP Deducted Fee and Destination PSP Deducted Fee in the payment message. To do this, the Source PSP must follow these steps:

1. For every transaction, the Source PSP must call EITHER:

   1. GET /quotes/ - to be used by PSPs which use an FXP. This will return the list of quotes and the creditor agent fee (D-PSP fee) for every quote, OR

   2. GET /fees-and-amounts/ - for Source PSPs which provide their own FXP. This API will calculate the Destination PSP Deducted Fee given a specific amount and exchange rate.

2. The S-PSP must insert the Source PSP Deducted Fee and Destination PSP Deducted Fee (as calculated in Step 1) into the Charges > Amount element of the pacs.008. See Charges Informationfor details.

Note: The Source PSP must not hardcode the D-PSP fee formula in their systems. This is because the fee formula will change, at a minimum on the 1st of every month, to accommodate changes in exchange rates between the Nexus Scheme Reference Currency and the Source PSP or Destination PSP’s local currency.

1. The D-PSP must deduct the amount defined in the Charges > Amount element of the pacs.008

Transparency Requirements

Source PSP Transparency

Before the Sender approves a payment, the Source PSP must display to the Sender:

• The exact amount of the Source PSP Invoiced Fee (if charged), in the Sender’s currency

• The exact amount that will be debited from the Sender’s account, in the Sender’s currency

• The exact amount that will be credited to the Recipient’s account, in the Recipient’s currency

The Source PSP must also show the Sender one of the following options:

• Option (A) Effective Exchange Rate, which is the ratio between the amount credited to the Recipient's account (in the Destination Currency) and the amount debited from the Sender's account (in the Source Currency); OR

• Option (B) Other Fees + Defined Exchange Rate + , which shows the value of the fees to be deducted (shown in the Source Currency) and the effective exchange rate between the amount after deductions and the amount actually credited to the Recipient.

Subject to the requirements above, the exact amount of the Source PSP Deducted Fee (if charged) does not need to be disclosed. If Option (B) is chosen, the Source PSP Deducted Fee and other relevant fees can be combined and presented as one amount.

Destination PSP Transparency

The Destination PSP may or may not disclose the Destination PSP Deducted Fee to the Recipient.