If a user's transaction consists of any type of conversion between currencies, they must be clearly presented with the FX rate and additional fees at the point they make the transaction and in any statements covering the relevant period.
Below are examples of good practices when presenting fees.
Variable Fee
This shows an example where a reference rate and a variable fee are charged.
| You pay | £100.00 |
| Variable fee | 3% |
| Total fees | £3.00 |
| You convert | £97.00 |
| Exchange rate (1 GBP to 1.30 USD) | 1.30 |
| They receive | $126.10 |
Fixed Fee
The following table is an example of a fixed fee presentation:
| You pay | £100.00 |
| Firm exchange rate (1 GBP to 1.26 USD) | 1.26 |
| Fixed fee | £0.00 |
| Total fees added | £3.00 |
| They receive | £126.10 |
Additional fixed fee examples:
| You convert | £100.00 |
| Fixed fee | £5.00 |
| You pay | £95.00 |
| Exchange rate (1 GBP to 1.30 USD) | 1.30 |
| They receive | \$123.50 |
| You convert | £100.00 |
| Fixed fee | £5.00 |
| You pay | £105.00 |
| Exchange rate (1 GBP to 1.30 USD) | 1.30 |
| They receive | \$130.00 |
The Adyen exchange rate includes a 3% markup charge.
In both examples, the customer is clearly informed about the fee structure, and can clearly identify how the total cost of the transaction was calculated.
The customer can clearly identify the rate of the conversion, the value of the conversion, and the fee that they have paid.
Third Party Fees
The following examples show how third-party fees are presented.
| You convert | £100.00 |
| Fixed fee | £5.00 |
| Pay all fees? | £15.00 |
| You pay | £120.00 |
| Exchange rate (1 GBP to 1.30 USD) | 1.30 |
| They receive | $130.00 |
This includes Adyen's fee for the transaction. When you make an international payment, intermediary banks may deduct fees from the amount you send. Selecting "Pay all fees?" allows you to pay a flat upfront fee which guarantees that the recipient receives the intended amount.
| You convert | £100.00 |
| Fixed fee | £5.00 |
| You pay | £105.00 |
| Exchange rate (1 GBP to 1.30 USD) | 1.30 |
| They receive | $130.00 |
This includes Adyen's fee for the transaction. The recipient will pay any fees charged by third parties, which will be deducted from this amount.
This example above where intermediary fees may also be charged and deducted from the total amount the customer intends to send.
The above information is based on guidance provided by the UK Financial Conduct Authority but applies to marketplaces in all regions.