To comply with EU Cross Border Payment regulation (EU 2021/1230) and to enable improved end user experience, Enfuce provides a solution to disclose to the end user the exchange rates used for card payments.
fxRateVisa/fxRateWithAdditionalFee
) and amount (toAmountWithVisaRate/toAmountWithAdditionalFee
), are available with and without the mark-up defined by the issuer. If the issuer has a 0% mark-up then the amounts and rates are the same.
For the benchmark, in this case the ECB, the API returns the rate (benchmarkFxRate
) and the amount(toAmountWithBenchmarkRate
). It should be noted that the ECB only provides benchmark rates for 32 currencies (Euro foreign exchange reference rates) which exceeds the regulation requirements but limits a global solution.
With this information, the issuer can access the relevant rates, as well as easily derive the difference in percentage between these as required by the regulation. The issuer is responsible for having this information easily accessible in an easily understandable manner for the end user. In practice this means that the end user should be able to access this information at any time to independently and transparently be able to compare the exchange rate on the card and ECB.
settlementAmount
+ feeAmount
with the transactionAmount
and comparing the result with the ecbRate
, will allow you to determine the difference in exchange rates.
Use case step | Message | Explanation |
---|---|---|
Customer makes a purchase for 10.50 USD and decides to pay in local currency. | Issuer receives transaction message from Enfuce API:“settlementAmount”: { “amount”: 8.76, “currency”: “EUR” }, “transactionAmount”: { “amount”: 10.50, “currency”: “USD” }, “feeAmount”: { “amount”: 0.18, “currency”: “EUR” }, “ecbRate”: “0,82873”, | Purchase is 10.50 USD (“transactionAmount”)The amount charged from the customer is 8.76 EUR (“settlementAmount”) + 0.18 EUR (“feeAmount”) = 8.94 EUR. This results in a card exchange rate (EUR/USD) of 0,85142. |
Real-time notification sent to (your) Customer by the issuer | $10.50 (€8.94) spent at Restaurant Restaurant, City, Country Markup over ECB: 2.74% Exchange rate $1 = €0.85 | The difference between the card exchange rate and benchmark rate is: 0,85142/0,82873 = 1,0273792 → 2,74% difference. The issuer will need to send a push notification/alert to the cardholder with the % mark-up over ECB. Alternatively, this can be included in any existing push notifications about the transaction. |