Steps 3-6: Exchange rates
Step 3: Request rates from Nexus
Once the Sender has entered either Source Currency Amount or Destination Currency Amount, the PSP should use the
GET /quotes/
API operation to retrieve quotes (see FX Service APIs for more detail).
In the case that the PSP is also an FXP, they should still use this quote to retrieve current rates, as Nexus will generate a quote ID specific to this payment which must be referenced in the pacs.008 payment instruction. Without this quote ID, the exchange rate cannot be validated and the payment will fail.
Nexus will retrieve rates for the currency and country pair selected
For each rate, Nexus will:
automatically apply any improvements offered by that FXP based on size of the transaction or the PSP requesting the rate. (See Tier-based improvements and PSP-based improvements for more detail.)
check that the Source Currency Amount and Destination Currency Amount (at the given rate) do not exceed the
MaxAmt
values in either the Source or Destination IPS, and adjust those values if they do.calculate the amounts, in Source and Destination Currency, that can be sent at this rate. These are defined in the following fields in the response to
GET /quotes/
:AdjustedSourceAmount
AdjustedDestinationAmount
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. This means theAdjustedSourceAmount
andAdjustedDestinationAmount
will never exceed the maximum that can be sent through the relevant IPS.
Nexus will then return the full list of adjusted and improved rates, with Quote Ids that are unique to this
GET /quotes/
request. The Quote Id must be referenced when the PSP submits the pacs.008 payment instruction (or the domestic equivalent).
The GET /quotes/
API 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 4: Selecting the preferred quote
The 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.
The PSP does not show the list of quotes to the Sender.
In the case that the PSP also acts as an FX Provider, the PSP can select its own quote. Please note that when the PSP selects itself as FX Provider, the PSP need to have quotes registered as an FX Provider in Nexus. See PSPs who are also FXPs.)
Complications can arise when there are two or more IPSs in the Destination Country, and some quotes are only valid for one of those IPSs. See Selecting quotes when there are multiple IPSs in one country for details.
Step 5: Marking up FX Rates
The PSP can also add a markup to the FX rate before it is shown to the Sender. PSPs may wish to mark up the FX rate they are provided by the FX Provider instead of (or in addition to) charging a transaction fee.
The Nexus pacs.008 when markups are used
When the PSP applies a markup to the FX rate, the pacs.008 message should use the following elements in a specific way:
Instructed Amount = the amount deducted from the Sender’s account
Exchange rate = 1.5000 (the exchange rate agreed between the Source PSP and the FX Provider, as defined in the Source PSP’s preferred quote provided by Nexus
Interbank Settlement Amount = the amount the Source PSP actually transfers to the FXP’s Settlement Account Provider (rather than the amount deducted from the Sender’s account, which will be higher to account for the FX markup)
Step 6: Display 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 Source PSP does not plan to mark up the FX rate offered to the Sender, it can simply use the
AdjustedSourceAmount
andAdjustedDestinationAmount
fields in the quote response to update the Source Currency Amount and Destination Currency Amount fields in the app.If the Source PSP plans to mark up the FX rate offered to the Sender, it should calculate the Effective Rate (ie. Preferred rate from Nexus * PSP’s Markup = Effective rate)
If the Sender defined the Source Currency Amount, the
AdjustedSourceAmount
should be multiplied by the (Effective) Rate to get the Destination Currency AmountIf the Sender defined the Destination Currency Amount, the
AdjustedDestinationAmount
should be divided by the (Effective) Rate to get the Source Currency Amount
The Source PSP should confirm whether the amount originally requested by the Sender has been capped (because it exceeds the maximum amount in either the Source IPS or Destination IPS):
If the Sender defined the Source Currency Amount, AND this amount is greater than the
AdjustedSourceAmount
, the Source PSP should add a notice to the Sender that the amounts have been adjusted to the maximum value that can be sent.If the Sender defined the Destination Currency Amount AND this amount is greater than the
AdjustedDestinationAmount
, the Source PSP should add a notice to the Sender that the amounts have been adjusted to the maximum value that can be sent.
The effective exchange rate applied (after any markup added by the PSP) should also be shown to the Sender
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