Currency pairsĪ currency pair is the quotation and pricing structure of the currencies being traded. CurrenciesĬurrencies are a system of money accepted within a country, for example the US Dollar in the US, or the Euro across the Eurozone. For example, a trader in the UK dealing in Mexican Pesos and Euros will trade them at the ‘cross rate’. In foreign exchange, crosses refer to the exchange rate of currencies being traded in a country that does not utilise either of those currencies. Cross-border paymentĬross-border payment is a transaction in which a payer in one country transfers money to a payee operating in a different country via the foreign exchange market, using a bank or third party payment processor. A correspondent bank is a financial institution that provides services on behalf of another financial institution. The beneficiary receives the full payment amount but the payer will be charged a higher payment fee to cover the intermediary bank charges.īanks are financial institutions that are licensed to provide financial services, such as deposit taking, lending, currency exchange and payment services. As a result, the payment amount received in the beneficiary bank account may be less than the full amount expected.įor OUR payments, the intermediary bank charges are covered by the payer and not deducted from the payment amount. There are two available payment charge types - ‘Shared’ (SHA) and ‘Ours’ (OUR).įor SHA payments, the intermediary bank charges are deducted from the payment amount. The type of deduction made by a receiving bank for a priority payment. The bid rate is the rate quoted to you when you’re about to buy a currency. Automated Clearing House (ACH)Ī US-based organisation that processes massive amounts of debit and credit transactions such as direct deposit, payroll and vendor USD payments in the USA.Ī Bank Identifier Code (BIC) is a unique code that tells the SWIFT network which bank is making/receiving messages. Anti-money laundering (AML) refers to a set of procedures, laws and regulations governments and financial regulation authorities have designed to stop the practice of generating income through illegal actions.
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