How Exchange Rates Are Calculated

Payments requiring currency conversion (converting to USD or CAD) are based on the currency of the service and/or the currency of the payment.

For example, credit or debit Payments made in CAD destined to the United States are converted to USD at the exchange rate of the day the payment is delivered. If the payment is returned, it will be converted back to CAD (at that day’s rate) and credited or debited to your account.

As a result of fluctuations in the exchange rates, the amount returned may be different from the original amount.

For more information or specifics, contact the Cash Management Client Support Centre.

An Example of Currency Conversion

Your customer has a USD account in the United States, your service is in CAD and you need to process a $100 CAD payment. The steps to successfully complete this transaction are:

1. Process a payment for $100 CAD on your input file.
2. The payment is converted to the currency of the destination country, in this case the USD rate of exchange on select date = 1.3750.
3. Therefore $100 CAD = $72.72 USD.
4. The $72.72 USD will be electronically processed and sent to the United States and debited from your customer’s account.
5. CAD $100 will be credited to your control account.

Summary of Currency Conversion Scenarios