Foreign currency (FX) payment

To make a payment in a foreign currency that differs from the currency on your account, you need to perform a currency conversion, commonly known as foreign exchange (FX).

Depending on the direction of the FX transaction, either the buying or selling rate is used.

• Financial institutions use the buying rate to buy foreign currency from the end customer.

• Financial institutions use the selling rate to sell foreign currency to the end customer.

You can initiate a transaction by:

• Fixing the buying amount and the currency which is converted from the specified selling currency. In this case, the transaction is converted using the selling rate as the financial institution sells the fixed amount and currency from the end customer.

• Fixing the selling amount and currency which is converted into the specified buying currency. In this case, the transaction is converted using the buying rate as the financial institution buys the fixed amount and currency from the end customer.

Available options in Tuum

Tuum provides two options for foreign exchange payments:

1. The FX conversion and the payment initiation are two separate steps.

2. The FX conversion is part of the payment initiation process.

How do the options differ?

To make a choice between the options, you need to know how the payment appears on the account statement. Let us take an example where a 100 GBP payment is made while only EUR is on the account with the exchange rate of 1.1.

1. In the first case:

   • -110 EUR and +100 GBP is shown on the account as FX conversion

   • -100 GPB is shown on the account as a payment

Choose this option if you want to have both currencies visible on the account.

1. In the second case:

• -110 EUR is shown on the account with an explanation of -100 GBP payment

Choose this option if you do not want to have payment currency present on the account.

Next, we will describe each option in more detail.