Faisal KhanAnswered Oct 19, 2026Depending on the agreement, you may be able to set the rate your customer sees, within the provider’s pricing rules and limits. To understand your earnings, you need to work backward from that retail rate to the underlying wholesale rate and all the charges between them.
There are two common situations:
- You use the provider’s payout partner. The payout partner supplies a rate to the solution provider, which passes a rate to you. You add your agreed margin before presenting the retail rate to your customer.
- You bring your own payout partner. The appropriate correspondent agreement must be in place. Under that arrangement, your partner’s rate reaches you through the agreed structure, and you build your customer pricing around it.
The provider may charge a fee expressed in basis points. That charge is a cost to your business; it is not automatically a percentage share of your profit. Pricing varies with transaction volume, corridor, compliance profile, and the commercial agreement. You then build your own margin and any transaction fee into the business model.
If you are already licensed and operate through a correspondent arrangement, the rate can flow differently: your payout partner quotes to you, and you pass the rate to the solution provider. Where the provider settles with you dollar-for-dollar, its role may carry a processing fee without an FX conversion margin on that leg.
Where the provider performs the FX conversion, its quoted rate may already include a spread. Ask for that distinction to be clear. Your earnings depend on the complete transaction economics, including both explicit fees and the rate you actually receive.