The BARX FXPay settlement solution has been built for online retailers who have to collect 100s and often 1000s of low value payments each day, particularly at weekends, sometimes in their customer's local currency. The FX hedging and settlement of these payments are a problem, as it can be difficult to price the goods and services offered because of the uncertainty on FX rates. The BARX FXPay service from Barclays simplifies the process, offering a fully automated and bespoke FX settlement solution - see Figure.
BARX FXPay offers guaranteed up-front competitive FX rates for a specific period - from a few hours to several days and eliminates the risk by carrying out the foreign-currency conversion of each payment when the sale occurs. There are also reduced FX management costs through deal aggregation and netting, and capturing the FX margin previously trapped in the supply chain. Another cost-saving feature in BARX FXPay is the auto-management of the payment reversal process where the original FX rate for the client on the refund is automatically applied, ensuring that the customer receive the exact amount they paid originally. Already BARX FXPay is used by a number of online retailers.
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