These days, companies sell things to individuals all over the world, relying on real-time FXAPI to price transactions accurately. A student in London might pay for school, whereas a consumer in India might buy items crafted by hand. This worldwide reach opens up a lot of ways to make money, but it also creates a constant and costly problem: chargebacks that happen across borders.
At first, a chargeback might not seem like a huge concern. But even a few a month might affect your business significantly by causing:
Changes in income
Time wasted on resolving disagreements
Costs for payment gateways
Merchant accounts or payment schedules facing potential limits
Research shows that over 20% of chargebacks for transactions made outside the country are due to issues with currency conversion and incorrect billing information. What makes this happen? Your accounting system, the payment processor, and the customer’s bank all have different foreign exchange (FX) rates. This indicates that the buyer may pay more or less than they expected.
This is when precise receipts and correct FX data really matter.
Why Chargebacks Happen When You Sell Across Borders
First, let’s review the essentials.
A chargeback is when a customer contacts their bank or card issuer and disputes a transaction, asking for their money back. People typically dispute domestic transactions because they don’t like the product or think it might be a scam. But currency conversion adds another level of complication to cross-border payments.
These are the most common causes:
When exchange rates don’t match The pricing you see at checkout is not the same as the rate that was used to finish the deal.
Hidden markup or conversion fees The buyer doesn’t know about extra costs or markups that banks and payment gateways charge.
Receipts that are hard to read Customers see a final amount in a foreign currency, but they don’t know how it was figured out.
Updates to rates that are late When an accounting system uses yesterday’s rate for today’s transaction, the values don’t match.
Displayed vs. debited amounts are different FX drift makes the actual bank debit different from the checkout amount.
This seems odd to a customer. This causes businesses to face unnecessary arguments, refunds, and a loss of confidence.
The Real Problem: FX That Isn’t Clear or Right
Think about this example:
A SaaS business in Mumbai charges $49 a month for a subscription that works all over the world. A consumer from the UK signs up and sees that they will pay roughly £38.40 at checkout.
But when the payment goes through two days later, the customer’s bank reports £39.60, which is only £1.20 more.
This isn’t a major issue for the business. It’s a warning sign for the customer.
Their first reaction is: “The wrong amount was charged.”
This can rapidly lead to a disagreement or a chargeback.
The main difficulty was that the system didn’t use a live FX rate; it used a static or delayed source instead. If the real-time interbank rate had been used when the purchase was made, the transaction would have been clear, correct, and problem-free.
Where Most Systems Go Wrong (FX Handling Limits)
System / Platform
What It Does
What It Can’t Do
PayPal, Stripe, and Razorpay
Automatic conversion of currency when the deal is done
The customer doesn’t always see the real rate or markup
These systems are strong, but they weren’t made to be clear or precise in FX. They take care of the transaction, but not the trust.
Why It’s Important to Have Clear Receipts and Correct FX
Trust is closely related to transparency in cross-border trade.
When customers can easily see:
The cost in your currency
The real exchange rate that was used
The final converted amount
Any extra fee or tax that was added
…they are much less likely to challenge the transaction, even if the final cost is slightly higher. Now they know how everything fits together.
This improves:
Trust from customers
Conversion rates
Reconciliation accuracy
Brand reputation
How Real-Time FX API Stops Chargebacks
IBRLIVE is an example of an FX API service that gives you live interbank exchange rates by connecting directly to your payment or accounting system. Step by step, this is how it stops chargebacks:
Getting rates straight away The system retrieves the precise bid, ask, or mid-market rate when you check out or send an invoice.
Clear display Example: “Converted using live rate: 1 USD = 83.12 INR (Mid-Market).”
Correct receipts The invoice and final receipt both display the same FX rate, so there are no surprises.
Automatic matching No manual calculations, no FX errors, and no currency confusion.
Less arguing, more trust Customers don’t complain when they don’t feel misled.
Example: Transparency in Action
Stage
Without Real-Time FX
With Real-Time FX API (IBRLIVE)
Bill
$100 = ₹8,200
$100 = ₹8,278 (Live Rate)
Customer Paid
₹8,400 (markup not known)
₹8,278 (markup known)
Customer Response
“I was charged too much.”
“The amount is the same.”
Result
Chargeback
Transaction went smoothly
A difference of only ₹122 can start a fight — but transparency stops it.
The Unseen Hero: Clear Receipts
Precise FX protects your numbers. Clear receipts protect your relationships.
A clear receipt has:
Base currency and converted currency
A timestamped FX rate
A conversion markup or margin
A value-lock time
This creates transparency and trust, which is especially important when dealing with customers in different countries, time zones, and languages. It’s not merely “something nice to have.” It is the first step in preventing chargebacks.
IBRLIVE is a live FX API that is meant to be quick, clear, and accurate. Using REST APIs, it can link to TallyPrime, Zoho Books, QuickBooks, or custom systems.
Some of the most important features are:
Interbank data that refreshes every few seconds
Full visibility into bid, ask, and mid rates
Historical logs for audits and reconciliation
Pricing starting at $9 a month for SMBs, SaaS companies, exporters, and EdTech platforms
IBRLIVE connects static accounting systems with dynamic FX markets, making it possible to get accurate FX and clear receipts on a large scale.
The Benefits of Real-Time FX API and Clear Receipts
Advantage
Impact on Business
Less fighting because of uncertainty in FX
Fewer chargebacks
Clear communication
More trust from customers and more sales
Following the rules
Meets RBI, IFRS, and GAAP standards
No manual reconciliation
Better efficiency and scalability
Value in real time
Accurate financial reporting
In brief, real-time FX API ensures that the numbers are right, and clear receipts keep customers satisfied. Together, they protect your income.
Who Should Put FX Transparency First?
People who export and import
SaaS companies that bill customers around the world
Colleges and EdTech platforms that accept international payments
Freelancers and agencies that charge in USD or EUR
Online stores that ship worldwide
When you move money across borders, you are taking on currency risk. IBRLIVE helps eliminate that risk.
The End
Cross-border transactions can help a business grow, but they can also create problems if the rules for handling foreign exchange are not clear. Tally, Zoho Books, and QuickBooks all offer workflows that use more than one currency, but they don’t automatically update currency rates in real time. Payment gateways finish the transaction, but they don’t show how the rate is broken down.
Chargebacks happen because of this lack of transparency.
Businesses can do the following with a real-time FX API like IBRLIVE:
Use rates that are correct and up to date
Provide receipts that are clear and easy to understand
Maintain consistent reporting
Build trust that lasts
By using real-time FX API and transparent billing processes, businesses can reduce chargebacks, increase clarity, and build customer confidence around the world.
Prepaid travel cards are becoming one of the best ways for people going abroad to handle their money. These cards make it easier and safer for students studying abroad, those who travel a lot, digital nomads, and vacationers to spend money in other countries.
But people are still having trouble with one thing: the conversion rates that change without warning when they add money to their cards. When the ultimate amount that travelers get back is different from what they expected it would be, it makes them unsure, unhappy, and less likely to trust the product.
A lot of modern prepaid travel apps leverage FX APIs to give you real-time, accurate top-up costs.
The Old Problem of Putting Money on Forex Cards
Until recently, travel cards had to rely on static or delayed FX data. It was hard to guess how much was loaded because rates only varied once or twice a day. In today’s society, when digital payments happen right away, such strategy doesn’t work.
Some difficulties that happen a lot are:
Late FX rates make conversions that are no longer valid.
Markups that are hard to understand
The amounts shown and charged don’t match.
Unpredictable user experience, which makes people lose faith
Even small changes might generate problems or complaints, especially when people are already stressed out about going to a new country.
Why Travelers Should Know About Instant FX Rates
People who travel these days want to be able to view and manage their money. When you put money into your Live FX account, you get
Predictability: users know exactly how much they will get.
There are no hidden surprises upon settling; everything is obvious
People trust that the rates are the same as what they see on Google or XE.
Fairness—real-time updates reveal how the market actually is
In short, being explicit about everything at the top-up point makes for a better experience for customers.
How FX APIs Let You See Top-Up Rates in Real Time
An FX API (Foreign Exchange API) allows programs get the most up-to-date currency rates from trusted financial sites. When a traveler loads USD, GBP, EUR, or any other currency, the app makes a quick API call and gets the proper live rate immediately away.
Normal work flow:
User begins a top-up
The program uses the FX API to acquire a live rate.
The API shows you the prices between banks in real time.
Before they confirm, the user sees the exact rate.
The top-up is complete, and the rate is time-stamped for clarity.
IBRLIVE and other live FX providers have REST APIs that work well with travel card systems, which makes this process simple.
A Look at the Industry With and Without Live FX API
Scenario
Without Live FX
With Live FX API
Rate Source
Daily rates that don’t change
Live interbank feed
Update
Every 6 to 12 hours
In real time
User Visibility
Not much or not clear
FX with a clear live display
Clearness
Not visible or late
Clear rate and timestamp
Trust Level
Low
High
This makes things a lot less confusing and gets rid of bad “final amount shocks” for consumers.
Travel Apps and Fintech Companies Can Benefit From
Using a live FX stream improves both procedures go more smoothly and makes people happier:
Less arguing or support tickets regarding rates
Customers will trust you more and be more loyal.
Better following of the rules that regulators want to see.
Pricing logic that operates on its own, so you don’t have to change rates by hand
Audit trails and reconciliation are easier to follow.
It’s a simple change that makes a tremendous effect on how customers think.
What to Look for in an FX API
When choosing an FX API for prepaid travel card app, you should think about these crucial things:
Rates between banks that fluctuate every minute or second
Options for Bid, Ask, and Mid-Market
Historical Rate Logs for audits and disagreements
A lot of uptime and reliability
Easy to connect to REST APIs
When necessary, follow the rules set by central benchmarks.
IBRLIVE, Open Exchange Rates, and Currencylayer are some examples of platforms that provide Exchange Rate API For Forex Card Companies. A reliable source that is fast, accurate, and open may make the user experience a lot better.
Finally
People spend money differently when they travel overseas with prepaid travel cards, but without real-time FX, they can still leave travelers confused or unhappy. Apps may give users predictable, consistent top-ups and get rid of the biggest worry by leveraging clear, real-time currency rate APIs.
Live FX is not just a technology advance; it is also an improvement for clients.
If you work for an AD II (Authorised Dealer Category II) forex company in India, you already know that the most important thing is to integrate an accurate real-time exchange rate api for cross border transactions. Customers, whether they are students sending money to another country, travelers buying forex cards, or businesses paying international suppliers, want information that is correct and current.
Today, you need to provide the most up-to-date currency conversion rates on your website. A good currency conversion rate API makes sure that your clients see the real rates based on the market as soon as they buy something. This fosters trust and increases sales because clients no longer feel like they are “guessing the rates.”
As long as they follow KYC and AML rules, AD II dealers can legally sell forex prepaid cards and do currency exchange operations (RBI FAQs). They think your firm is open and professional when you talk to them about the foreign exchange market every day. This helps your name.
What Sets IBRLIVE Apart When Choosing the Best Live Forex API
When Indian AD II forex organizations want to find the accurate real-time exchange rate api, they think about how accurate it is, how trustworthy it is, how easy it is to use, and how much it costs. This is what sets IBRLIVE’s API apart:
Keep an eye on INR and accuracy
Most worldwide APIs, like OANDA and Currencylayer, give you access to large data sets that include more than 200 currencies. Indian AD II firms don’t need a lot of data that isn’t really valuable to them; they just need real-time prices that are based on the INR. IBRLIVE is all about the Indian forex market and gives rates that are in line with how banks and regulators work in India.
Dependability and ease of usage
The IBRLIVE API is for developers that make software for the financial technology industry. You can perform REST calls over HTTPS, obtain structured JSON responses, and get started quickly with a lot of documentation (IBRLIVE Exchange Rate API). This makes it easy to add to your project by merely adding a few lines of code, whether you’re making a live currency exchange chart widget or a conversion rate API calculator.
Price and value
ExchangeratesAPI.io and other free APIs are good for testing or blogs that don’t receive a lot of visitors, but they don’t always work and their data isn’t always up to date. Companies that perform a lot of money exchange need to be able to trust each other. IBRLIVE offers stability at the enterprise level and a latency of less than a second, so you won’t lose consumers because of delays or wrong numbers.
Steps for Adding a Live Currency Exchange API
Here is an example of a normal integration using the IBRLIVE API:
Get your API key. Sign up for IBRLIVE to get your developer key.
To get real-time INR and cross-currency rates, use REST to call Live Rate Endpoints.
You may use IBRLIVE’s data sources to add fields like “1 USD = ₹…” or a live EUR/USD currency chart.
Add charts and tools, such candlestick charts, so visitors can understand how trends are changing.
Using schema markup and headlines like “Live Currency Exchange API for AD II Companies in India” will make your site better for both search engines and users.
IBRLIVE is always up, so you can get more traffic without worrying about downtime.
Results? Your clients can see everything clearly, and your business stays professional and follows the rules.
Why AD II Forex Companies Should Work With IBRLIVE API
People in India can use IBRLIVE, however APIs like OANDA, Fixer, and Currencylayer work for people all across the world. That actually means a lot:
Prices that are solely for India: IBRLIVE as an Indian Fintech company is more focused on transactions that are tied to INR, so your clients will always get the best deals. Although it also specilized at international feeds that look at currencies like the US dollar, the euro, the pound, and others.
Low latency: Data updates happen almost instantly, so clients never see old data when they convert.
Compliance-first approach: A way of thinking that prioritizes following the rules first is showcased by IBRLIVE is a well-known Indian fintech, and its services satisfy the standards set by the RBI for AD II dealers. Generic outside APIs don’t work this way.
Made for AD II workflows: IBRLIVE knows more about local needs than worldwide providers when it comes to showing remittance values or posting rates on prepaid travel cards.
To sum up, Global APIs may cover a lot of ground, but IBRLIVE is more accurate, has more information, and follows the regulations in your region better. That’s why it’s the greatest live forex API for Indian AD II forex companies.
SUMMARY TABLE
Focus Area of Contents
Why This Matters for AD II Businesses
The Benefits of IBRLIVE
Forex API Right Now
Being honest, upfront, and accurate all the time
Made for Indian foreign exchange transactions that use INR
Data Quality Reliability
No problems, fair prices
Updates that follow the rules outlined and by the RBI and come in less than a second
Easy to add
Setting up REST/JSON is easy for developers.
Simple onboarding and simple steps for speedy setup
Trust in the rules
Following the rules stated by the RBI
Only for the laws of the Indian forex market
Price and Value
Not too pricey, but dependable—better than free APIs
Enterprise stability with features that make it better
FAQs
Q: Can AD II companies use free APIs to post exchange rates?
A: For blogs and sites that don’t get a lot of traffic, free APIs like ExchangeratesAPI.io are fine. But if your business is regulated, you need to be able to rely on and follow the rules at the corporate level. That’s where IBRLIVE excels.
Q: Is it possible for IBRLIVE to show live forex EUR/USD charts?
A: Yes. You may add live data from IBRLIVE to both line and candlestick charts. This is great for people who wish to see live chart features for trading forex.
Q: What makes IBRLIVE superior to global providers like OANDA?
A: Global APIs are really useful, but they don’t give AD II forex businesses the local INR accuracy, regulatory readiness, and timely updates they need.
Q: How long will it take to set up IBRLIVE’s API?
A: Integration can happen in days, not weeks, thanks to REST/JSON endpoints and easy onboarding.
Conclusion
For AD II forex companies in India, showing accurate real-time exchange rate is not just a nice-to-have; it’s an essential for developing confidence and meeting the rules. There are several global APIs, however IBRLIVE is only for enterprises in India. It gives AD II companies the speed, compliance, and accuracy they need to focus on INR.
Adding IBRLIVE’s Exchange Rate API to your business will help you stay ahead of the competition in India’s fast-growing foreign exchange industry, be honest, and win over clients.
Why Exchange Rate APIs Are The Quiet Engine Behind Fintech: An Introduction
Imagine this: you’re in Paris, and you’re using Apple Pay to pay for coffee on your phone. Your bank account back home is in INR, yet the transaction goes through right away in euros. Have you ever thought about what makes that magic happen?
The answer is exchange rate API for cross-border payments that work in the background.
Publishing correct currency conversion rates is not a nice thing for fintech companies that handle cross-border payments; it’s a matter of life and death. Customers want to know what’s going on; they want to see the current exchange rate before they agree to anything. Without it, trust goes down and conversion goes down.
APIs make sure such numbers aren’t just guesses. They give you real-time exchange rates, money converter tools, and even help businesses keep up with the rules. And even though there are big firms all over the world in this field, IBRLIVE stands out because it offers speed, accuracy that is first in INR, and RBI alignment for fintechs that work in India.
The Growth of Multi-Currency Needs
Fintech is growing quickly around the world. The World Bank says that remittances reached $860 billion in 2022, with India receiving the most. Meanwhile, mobile payments are still growing around the world. Apple Pay and the Google Pay app conduct billions of transactions every year.
What is the challenge? Customers don’t simply want things to be easy; they also want them to be clear. No secret spreads. No promises that aren’t clear. When financing a university in the U.S. or transferring money to family abroad, they want to know exactly how much ₹10,000 will turn into. That’s why currency conversion APIs are so important to new ideas in fintech.
Use Instant Money Converters Powered by Exchange Rate APIs
Have you ever looked for a “money converter” before going on a trip? APIs make that work. XE and Wise are two fintech apps that use currency exchange rate APIs to give users real-time conversions. This makes sure that clients always see the best euro exchange rate or USD/INR value before making a decision.
Evidence: Wise handles more than £9 billion in cross-border payments every month, using clear APIs to uphold its promise of “mid-market rates”.
Clear cross border payments
Hidden fees are the worst thing for fintech. APIs enable companies display accurate rates for cross-border payments, which makes sure they follow rules about openness.
The World Bank often talks about how important it is for remittances to have clear disclosures in order to lower costs for consumers.
Mobile wallets are becoming popular all over the world.
When people use Apple Pay or the Google Pay app to pay for things in other countries, APIs take care of the conversion in the background. Without this, fintechs run the danger of losing clients who are unhappy with unexpected fees.
Evidence: PayPal uses real-time APIs at checkout to make it easier to understand foreign exchange rates, which lowers the number of people who leave their carts.
Changing Prices in Travel and E-Commerce
Have you ever seen Amazon show you prices in your own currency? That’s how APIs work. Booking.com and other travel companies use APIs to figure out how much tickets cost based on today’s currency rate. This makes things more clear and cuts down on drop-offs.
Wallets and accounts that work with more than one currency
Fintech companies that shake things up, like Revolut, let consumers keep more than 30 currencies and convert them right away at real rates. This function is powered by APIs, which provide users peace of mind that they are obtaining the best euro or USD/INR conversion rate in the app.
Digital kiosks are taking the place of paper rate boards.
There was a time when banks used chalkboards to display how much money was worth. AD II forex companies and FFMCs in India now use APIs like IBRLIVE to show live foreign exchange rates on websites and applications. This looks professional and meets RBI’s criteria for compliance.
Managing Risk and the Corporate Treasury
Companies that do business around the world use APIs for hedging and forward contracts. Real-time data goes straight to treasury dashboards. Global APIs like OANDA provide you a lot of options, while IBRLIVE offers accuracy that Indian businesses need.
Working with payment gateways
Stripe and PayPal are two examples of payment gateways that employ currency exchange APIs to manage settlements in more than one currency. Fintech firms can use this model with providers like IBRLIVE, which makes it easy for Indian enterprises to grow and do business around the world.
Apps and charts for the financial market
Trading applications use APIs to connect to sites like TradingView so that you may see live charts of currency trading or FX EUR/USD. This characteristic draws in retail traders who want accuracy down to the second.
Reporting, auditing, and following the rules
APIs also take care of the dull but important part: compliance. The rules set by the RBI and the ECB say that companies must report correct exchange rates. APIs give you verified currency rates with timestamps, which makes audit trails easy to follow.
Best Ways to Integrate Exchange Rate API
So, how do you add an exchange rate API to a finance software without destroying anything? Here are some best practices for integrating a financial exchange rate API:
Keep things simple: use REST APIs that return JSON.
Make it safe: Always use HTTPS and keys to log in.
Plan for downtime: save data in a cache and have backup providers. If you don’t, it’s like trading forex without a stop-loss.
Measure of performance: Check uptime (99.9% or above is required) to see how well it works.
Compliance: Make sure your provider follows the rules set by regulators like the RBI.
Sure, Currencylayer and OANDA are amazing worldwide APIs. But when it comes to AD II forex companies, Fintechs or FFMCs in India, IBRLIVE is the best:
Local Accuracy: Rates that emphasis on INR that global APIs don’t give as much weight to.
Speed: With a latency of less than a second, clients always see new values.
Compliance: Unlike other providers, this one is made to work with RBI.
Developer-Friendly: Easy to understand docs, simple onboarding, and simple REST calls.
IBRLIVE helps fintechs globally by providing accurate Exchange Rate API for Cross-Border Payments but it provides an edge to companies who are based in India but want to grow internationally by bridging the gap between local compliance and international performance.
FAQs
Q1: What’s the simplest approach for fintechs to let customers know about exchange rates?
A: Use an API-powered money converter or currency exchange rate widget like IBRLIVE.
Q2: Do APIs work with mobile payment apps like Google Pay and Apple Pay?
A: Yes. APIs make sure that conversions happen right away, which stops hidden fees.
Q3: How do fintech companies give their consumers the best euro exchange rate?
A: By selecting BRLIVE API for fintech companies that offer clear, mid-market rates with no extra costs.
Q4: What are the best ways to integrate a financial exchange rate API?
A: REST/JSON integration, caching, redundancy, secure endpoints, and checks for compliance with providers.
IBR rates refer to the exchange rates at which banks buy and sell currencies from each other. These rates are important because they affect the value of currencies for businesses and individuals who need to exchange money across different countries. In this blog, we’ll explore what are Interbank Rates, how they’re determined, where to find authentic & real-time exchange rates and why they matter.
What are IBR Rates (Interbank Exchange Rates)?
Interbank exchange rate is the exchange rate at which banks buy and sell currencies from each other. IBR Rates are also commonly referred to as spot rates. The spot rate is the exchange rate at which a currency can be bought or sold for delivery within two business days. These rates are typically used as a benchmark for exchange rates in the wider market, as they reflect the rates at which banks with significant trading volumes can exchange currencies with each other.
The interbank rate is used by banks to settle transactions between themselves, such as when one bank needs to pay another bank in a different currency. These rates are typically quoted with a bid-ask spread, which represents the difference between the price at which banks are willing to buy and sell currencies. The bid price is the price at which a bank is willing to buy a currency, while the asking price is the price at which it’s willing to sell the currency.
How IBR rates are determined?
Interbank Rates are determined by supply and demand in the foreign exchange market. Banks with excess currencies will offer them for sale, while banks that need those currencies will buy them. The exchange rate at which these transactions occur is determined by the market, based on the supply and demand for each currency.
Many factors can affect the supply and demand for currencies in the foreign exchange market. These include factors such as economic data, central bank policies, political events, and natural disasters, among others. Changes in any of these factors can cause fluctuations in exchange rates.
Where you can find authentic & real-time Interbank Rates (IBR Rates)?
Although many sources are available online to find interbank exchange rate, not all are authentic and real-time. The best platform that displays accurate & live interbank exchange rates and interbank dollar rate is https://ibrlive.com. You can find Inter Bank Exchange Rates of almost all currencies on this website, which is free of charge. For example you can find the interbank rate for usd or ibr rate for usd in real time on this website.
Why do IBR Rates matter?
Interbank exchange rates are important because they affect the value of currencies for businesses and individuals who need to exchange money across different countries. For example, if you’re a business that needs to pay a supplier in another country, you’ll need to exchange your local currency for the currency of the country where your supplier is located. The exchange rate you receive will determine how much of your local currency you need to exchange to pay your supplier.
How IBR Rates Differ from Forex Card Rates?
IBR Rates reflect real-time interbank exchange rates at which banks trade currencies with each other, with very narrow bid–ask spreads. In contrast, Forex Card Rates are retail rates set by banks by adding heavy margins over Interbank rate, often ₹1–3 higher on USD, EUR, or GBP transactions. While Interbank Exchange Rate represent the true market value of a currency, Forex Card Rates include bank profit, operational costs, and risk buffers, making them significantly costlier for end users. You can view Forex Card Rates of each bank on their specific website. For example you can view the updated ICICI bank forex rates on thier website.
In addition, Inter bank exchange rate can affect the profitability of businesses that operate in multiple countries. If a company earns revenue in one currency but has expenses in another currency, changes in the exchange rate can affect its profit margin.
Finally, Interbank Rates can also have an impact on the wider economy. For example, strengthening a country’s currency can make its exports more expensive and less competitive in foreign markets. This can lead to a reduction in exports and a negative impact on the country’s economy.
In conclusion, interbank exchange rates are an important component of the foreign exchange market. They are used by banks to settle transactions between themselves and serve as a benchmark for exchange rates in the wider market. Understanding how these rates are determined and why they matter can help businesses and individuals make better decisions when it comes to exchanging currencies.
A forex card rate is like a display board where a bank publishes exchange rates for buying and selling foreign currencies, travel cards, and currency notes. The spread between buying and selling currencies in a card rate is generally kept very wide. For example, SBI forex card rates for USD/INR can be in the form of the below-mentioned table:
Currency
Bank Buying Rate
Bank Selling Rate
TT Buying rate
Bills Buying rate
Currency notes
Travel card
Traveller’s cheques
TT Selling rate
Bills Selling rate
Currency notes
Travel card
Traveller’s cheques
Demand draft
United States Dollar (USD)
80.94
80.94
79.45
80.69
80.69
84.58
84.58
85.94
84.36
84.36
84.24
When a bank displays a card rates for foreign exchange, it may show both the TT buy rate and the TT sell rate. The TT buy rate is the rate at which the bank will buy foreign currency from the customer in exchange for local currency. The TT sell rate is the rate at which the bank will sell foreign currency to the customer in exchange for local currency. The difference between the TT buy and TT sell rates is known as the bid-ask spread, and it represents the bank’s profit margin for facilitating the transaction. The bid-ask spread can vary depending on various factors, such as market conditions, currency volatility, and the size of the transaction. Customers need to understand the Bank’s card rate and the bid-ask spread to make informed decisions about foreign exchange transactions and to minimize the costs associated with such transactions.
Do the Forex Card Rate of each bank differ?
The Fx Card Rates can differ across banks. Each bank sets its own exchange rates based on a variety of factors, such as its cost of acquiring foreign currency, operating expenses, and profit margin. For Example HDFC Bank Forex Rates for USD/INR may differ with ICICI Bank Forex Rates and SBI Forex Card Rates Today.
The differences in Foreign Exchange Card Rates across banks can impact the cost of foreign exchange transactions for customers. Therefore, comparing the fx card rates offered by different banks before making a foreign exchange transaction is essential to get the best possible rate.
What is the difference between the Forex Card Rate & Interbank Exchange Rate?
The Forex card Rate vs Interbank Exchange Rate are two different rates used in foreign exchange transactions. The main differences between the two are:
Definition: The Interbank Exchange Rate is the rate at which banks buy and sell currencies with each other in the wholesale market. It is used by banks to settle their transactions and by other financial institutions as a benchmark for pricing their foreign exchange products.
On the other hand, the foreign exchange card rate, refers to the rate derived on a daily basis by bank based on the Interbank Exchange Rate by keeping a substantial margin on buy and sell foreign exchange transactions. Generally the margin loaded in card rate is more than 1 rupee on USD/INR transactions, 2 rupee on EUR/INR transactions and 3 Rupee on GBP/INR transactions. This margin can vary across banks based on their different strategies and other market factors.
Calculation: Numerous economic considerations and market dynamics of supply and demand as well as market dynamics of supply and demand, influence the Interbank Exchange Rate. While the bank’s profit margin, the interbank rate, and any other fees or charges are all included in the Bank’s Card Rate, which is established by the bank.
Spread: The difference between a currency pair’s purchasing and selling rates for a currency pair is known as the bid-ask spread. Due to banks’ high volume of transactions, the spread for Interbank Exchange Rate is normally quite small, with only a few pips. For example the spread between USD to INR IBR rate for hdfc bank forex exchange rates today may be 1 to 3 paisa only. As a result of the bank’s profit margins and other expenses related to supplying retail consumers with foreign exchange services, the gap in Fx card rate is often greater and can range between 1 to 3 Rupees.
Source: Card Rates can be found on specific bank’s website for Example ICIC Bank Forex Card Rates can be found on link available on ICICI Bank’s official website. Whereas Interbank Rates ca be found on the most trusted forex website ibrlive.com.
