Question treasuryXL Panel #4 | When do I pay an FX surcharge to my payment service provider?

14-12-2021 | treasuryXL | EcomStream | LinkedIn |

treasuryXL is the community platform for all your relevant treasury questions.

We received the following question from one of our followers…



QUESTION

“When do I  have to pay an FX (Foreign Exchange) surcharge to my payment service provider (PSP)?” 


We asked for the assistance of our highly valued partners to answer the question: Ramon Helwegen, Founder and Managing Director of EcomStream.

With his expertise, he could help out our contact perfectly!


ANSWER

 

“Many payment service providers offer a variety of local currencies in which e-commerce sales can be settled. This helps you to gain a general overview of all payment flows without FX loss on a transaction. This is quite handy for an international e-commerce organization.

If the authorization currency and the settlement currency are the same (like-for-like), there is no FX loss on the transaction, which is obviously good for gross margins.

However, no payment service provider will settle all currencies as like-for-like. For currencies where this is not available, there is a loss of FX. The costs that the payment service provider charges for this can be considerable, and it can also differ considerably per currency. This is often not communicated transparently. Therefore, ask your payment service provider and realize that FX is also negotiable.”


 

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Question treasuryXL Panel #3 | Should treasury always report to the CFO?

02-11-2021 | treasuryXL | TreasurerSearch  | LinkedIn |

treasuryXL is the community platform for all your relevant treasury questions.

We received the following question from one of our followers…

 

QUESTION

“Should treasury always report to the CFO and what causes that this sometimes is not the case?” 

ANSWER

We asked for the assistance of our highly valued partners to answer the question: Pieter de Kiewit, Owner and Consultant at TreasurerSearch.

With his expertise, he could help out our contact perfectly!

 

Pieter de Kiewit

Pieter de Kiewit responds:

“In my opinion, treasury should in 95% of the cases report to the CFO. In my work with group treasurers and CFOs it is exceptional to find an organisation in which cash & liquidity, FX % interest risk and/or funding does not have a strategic value. Still, I see treasurers who do not report into their CFO. Sometimes just so, for example when the treasurer works in a completely different time zone and reports into a local MD. Very often not just so because the CFO considers him/herself too busy, decreases the span of control and delegates. A lack in treasury expertise of the CFO and/or the treasurer personally not being able to claim a prominent spot are, in my opinion, reasons for this..”

 

 

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Question treasuryXL Panel #2 | How is PSD2 being applied in a business context?

12-10-2021| treasuryXL | Cobase |LinkedIn |

treasuryXL is the community platform for all your relevant treasury questions.

We received the following question from one of our followers…

 

QUESTION

“As a treasurer, efficient and risk-free handling of payments and reporting are top of mind. In the daily news I read a lot about PSD2, but why don’t I see much of this being applied in a business context?”

ANSWER

We asked for assistance of our highly valued partners to answer the question: Joost Kevelam, Head of Sales and Head of Financial Markets & Risk Solutions at Cobase.

With his expertise he could help out our contact perfectly!

Joost Kevelam responds:

“That is a great question. Today PSD2 is very much geared towards retail users. For corporate usage, we see three key hurdles that need to be cleared.

Firstly, for reporting purposes PSD2 still demands use of bank-specific tokens; either for periodical consent (for reporting) or for each payment. For treasurers that have several banks this is prohibitive.

Secondly, corporate treasurers want to connect in such a way that they can do all their cash management tasks in their ERP and the ERP then connects (unattended) to all their banks. The banks’ PSD2 (or Open Banking) connections often do not support these patterns.”

 

Lastly PSD2 protocols vary wildly across banks, there is no standard yet. Developments in the right direction are unfolding slowly.
In the meanwhile there are solution providers in the market that offer much of the touted future PSD2 benefits, but with technology that is already easily available today (e.g. swift, host-2-host and other APIs). If you select a provider, please consider whether they have the license and capability to easily migrate you to the PSD2/Open Banking interfaces once they are suitable for corporate usage.
Feel free to contact me if you wish to discuss how these technologies can make your life as a treasurer easier.

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Question treasuryXL Panel #1 | Is a BIC registration possible for both financial as non-financial institutions?

28-09-2021| treasuryXL | Enigma |LinkedIn |

treasuryXL is the community platform for all your relevant treasury questions.

We received the following question from one of our followers…

 

QUESTION

As my company is not a bank but will be registered under a money transmission license in multiple US states, is it possible for me to get a BIC? And does this result in any special process, for example do I have to pay a fee?

ANSWER

We asked for assistance of our highly valued partners to answer the question: Robert-Jan Wekking , Executive Consultant at Enigma.

With his expertise he could help out our contact perfectly!

 

Robert-Jan Wekking responds:

Please be advised that BIC can be registered for financial and non-financial institutions and. So it should also be feasible for your organization. The common process is used via SWIFT. Please follow this link for more information. Here you can also find information about the registration process. There are indeed fees, however these are not public.

 

 

 

Do you also have a treasury related question? Feel free to leave your question at our treasuryXL Panel. The panel members are willing to answer your question, free of charge, no commitment.