Steps 3-6: Exchange Rates

This step only applies to Source PSPs that wish to use a third-party FX Provider. Source PSPs that hold funds in an account as a Settlement Access Provider in the Destination Country can define their own FX rate. See Payment setup for PSPs who provide their own FX for detail.

As shown in Step 2, the Sender can choose to set EITHER:

• the amount to send in their own Source Currency. This is the DebtorAccountAmount which will be debited from the Sender/Debtor's account, defined in the Source Currency, OR

• the amount the Recipient should receive, in the Recipient's own Destination Currency. This is the CreditorAccountAmount which will be credited to the Recipient/Creditor's account, defined in the Destination Currency

The quote request process is slightly different depending on which option the Sender chose.

Step 3: Source PSP prepares quote request to Nexus

1. The Source PSP should use the GET /quotes API operation to retrieve quotes. This API accepts the following values:

   1. Source Country

   2. Source Currency

   3. Destination Country

   4. Destination Currency

   5. Amount

   6. Amount Currency (ie Source Currency or Destination Currency)

2. If the Sender defined the DebtorAccountAmount (ie amount to send), then the Source PSP should set the following values in the quote request:

   1. Amount Currency = Source Currency

   2. Amount = DebtorAccountAmount minus Source PSP Deducted Fee

If the Source PSP charges a Source PSP Deducted Fee, this fee is deducted from the DebtorAccountAmount before any funds are transfered to the FX Provider. Therefore the Source PSP should request the quote amount after deducting its own fee.

See also Source PSP Fees

3. If the Sender defined the CreditorAccountAmount (ie amount the recipient should receive), then the Source PSP should set the following values in the quote request:

   1. Amount Currency = Destination Currency

   2. Amount = CreditorAccountAmount

In this case, the Source PSP should request the quote amount defined by the Sender ie the CreditorAccountAmount. This is the exact amount that should be credited to the Recipient/Creditor account.

Nexus will work backwards from the CreditorAccountAmountto calculate how much money (in the Source Currency) the Source PSP needs to transfer to the FXP. This amount will also be sufficient to cover the Destination PSP Deducted Fee, so that the Recipient recieves the full CreditorAccountAmount. See Destination PSP Deducted Fee for further detail.

4. The Source PSP sends a quote request to the GET /quotes API.

Step 4: Nexus generates quotes

4. Nexus will retrieve the basic rates for the currency and country pair selected, from those FXPs that have confirmed they are happy to provide FXP to this Source PSP

5. For each rate, Nexus will:

   1. automatically apply any improvements offered by that FXP based on size of the transaction or the PSP requesting the rate. (See Improving rates for larger transactions and Improving rates for specific PSPs for more detail.)

   2. If the Sender defined the DebtorAccountAmount, the Source PSP will have subtracted their own Destination PSP Deducted Fee and then requested a quote for the net amount. Nexus will multiply this amount by the (possibly improved) exchange rate to get the amount that will be transferred from the Destination SAP to the Destination PSP (the Interbank Settlement Amount in Destination Currency).

      1. Nexus will also calculate the Destination PSP Deducted Fee and include this in the quote response.

      2. Nexus will calculate the amount that will be credited to the Recipient's account after the Destination PSP (Deducted) Fee has been deducted. This is included the quote response as CreditorAccountAmount.

   3. Alternatively, if the Sender defined the CreditorAccountAmount, Nexus will:

      1. work backwards from this amount to calculate the Destination PSP (Deducted) Fee.

      2. add the CreditorAccountAmount and Destination PSP (Deducted) Fee together, and divide the result by the (possibly improved) exchange rate to identify how much the Source PSP needs to transfer to the FXP. This amount will be included in the Quote response as Interbank Settlement Amount (in the Source Currency).

   4. Nexus will check that the Interbank Settlement Amount (in the Source Currency) and CreditorAccountAmount (at the given rate) do not exceed the MaxAmt values in either the Source or Destination IPS

      1. Where the Source Currency Amount or Destination Currency Amount provided by the Sender exceeds the MaxAmt of the respective IPS, Nexus will apply whichever cap is the smaller at the current rate, and include an additional field in the quote response flagging that the amount exceeded the cap, and including the actual capped amounts that can be sent.

6. Nexus will then return the full list of adjusted and improved rates, with FX Quote Ids that are unique to this GET /quotes request. (The FX Quote Id of the chosen quote must be referenced when the PSP submits the pacs.008 payment instruction in Step 15: Send the pacs.008 to the Source IPS )

The GET /quotesAPI must be called again every time the Sender changes either the Source Currency Amount or Destination Currency Amount, since changes in the transaction value may (a) breach the maximum transaction value or (b) qualify for different size-based improvements to the rate.

Step 5: Source PSP selects the preferred quote

1. The Source PSP selects the quote that the PSP wishes to use (from any FXP with which is has already onboarded). This could be the best quote available or a quote from a preferred FX Provider.

2. The PSP does not show the list of quotes to the Sender.

Step 6: Source PSP displays the exchange rate and amounts to the Sender

Now the exchange rate and Source Currency Amount and Destination Currency Amount can be shown to the Sender:

• If the Sender defines the DebtorAccountAmount (ie the amount they wish to send, in their own currency), the amount fields should be updated as follows:

  • DebtorAccountamount = the DebtorAccountAmount originally defined by the Sender (ie no change)

  • CreditorAccountAmount = the CreditorAccountAmount which was calculated by Nexus and provided in the Quote response;

• If the Sender defines the CreditorAccountAmount (ie the amount that the Sender wishes the Recipient to receive),

  • DebtorAccountamount = the Interbank Settlement Amount provided in the quote response plus the Source PSP (Deducted) Fee

  • CreditorAccountAmount = the CreditorAccountAmount which was originally defined by the Sender. (This will be the same as the CreditorAccountAmount included the quote response.)

The Source PSP should check the quote response to confirm whether the amount originally requested by the Sender exceeded the maximum amount in either the Source IPS or Destination IPS.

If so, the Source PSP should update the app screen to show the new maximum value that can be sent.

• The effective exchange rate applied should also be shown to the Sender