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Confused by response from currency conversion (Foreign Exchange Rates API)

I am trying the Foreign Exchange Rates API in the sandbox.  I am using all of the default test values:

 

  • "destinationCurrencyCode": "840",
  • "markUpRate": "1",
  • "retrievalReferenceNumber": "201010101031",
  • "sourceAmount": "100",
  • "sourceCurrencyCode": "643",
  • "systemsTraceAuditNumber": "350421"

Here is the response:

// Body

{
  • "conversionRate": "0.0165",
  • "destinationAmount": "1.63",
  • "markUpRateApplied": "1.0",
  • "originalDestnAmtBeforeMarkUp": "1.65"
}
 
If I multiply the sourceAmount of 100 by the conversionRate of 0.0165, I get 1.65, so the "originalDestnAmtBeforeMarkUp" result looks correct.
 
However, I don't understand the "destinationAmount" result. I would assume that this is supposed to be the final amount after the markup is applied. However, I don't understand why it is LOWER than the originalDestnAmtBeforeMarkUp value. If I mark up 1.65 by 1%, I get 1.67. So why is it coming out as 1.63? It seems like it's marking it DOWN instead of UP.
 
Could someone please explain?
 
Thanks,
Joe
1 REPLY
Regular Visitor

Re: Confused by response from currency conversion (Foreign Exchange Rates API)

Hi,

 

Mark up rate is something that is applied by the money transfer services who help in currency conversion. So in your case The FX mark up rate that was applied was 1% . Because of this mark up rate, the final amount the receipient will receive is 1.63 where as the original amount receipient would have received prior to applying mark up rate was 1.65. 

 

Hope this helps ! Please let us know if you have any further questions.

 

Thank you !