> For the complete documentation index, see [llms.txt](https://docs.nexusglobalpayments.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nexusglobalpayments.org/fx-provision/rates-from-third-party-fx-providers/improving-rates-for-larger-transactions.md).

# Improving rates for larger transactions

{% hint style="warning" %}
This page relates **only** to third-party FX Providers.

For Source PSPs that provide their own FX, a different process applies. See [Payment setup for PSPs who provide their own FX](/payment-processing/payment-setup-for-psps-who-provide-their-own-fx.md) for details.
{% endhint %}

## Tier-based improvements for larger transactions <a href="#toc163809590" id="toc163809590"></a>

In Nexus a specific FXP may offer **better rates for larger transactions**. This works as follows:

* For each specific Source Currency, the FXP may define a number of **“tiers”** at which better rates apply.
* For each tier, the FXP will define how much the base rate (as provided in the POST /rates/ API) must be **improved**, in basis points.
* For payments smaller than the lowest tier, the **base rate** (provided when the FXP submits a rate to the `POST /rates/` API) applies.

{% hint style="info" %}
Note:

* An FXP may choose whether or not to set any tiers for a specific currency, and how many tiers to set.
* Different FXPs may set different tier thresholds for a specific currency.
  {% endhint %}

### WORKED EXAMPLE: Tier Improvements <a href="#toc163809591" id="toc163809591"></a>

In this example, the Source Currency is Euros. The maximum payment permitted through the TIPS payment system is EUR 100,000. FXP-A may therefore choose to set the following tiers:

| **FXP Id** | **SOURCE CURRENCY** | **TIER THRESHOLD** (Minimum transaction size at which the improvement applies) | **IMPROVEMENT** in basis points (applied to the base rate in the FXP’s quote) |
| ---------- | ------------------- | ------------------------------------------------------------------------------ | ----------------------------------------------------------------------------- |
| FXP-A      | EUR                 | 25,000                                                                         | 50                                                                            |
| FXP-A      | EUR                 | 50,000                                                                         | 100                                                                           |
| FXP-A      | EUR                 | 75,000                                                                         | 150                                                                           |

This means that for a payment of 50,000, the rate will be improved by 1%, and so the amount received by the Recipient will be 1% greater than it would have been with the base rate.

If FXP-A quoted the base rate for EUR>SGD at 1.500, then the improvement would be calculated as:

* Improved rate = Base Rate \* (1 + ((Improvement in basis points) / 10000)
* \= 1.5000 \* (1 + (100 / 10000))
* \= 1.5000 \* (1 + 0.01)
* \= 1.5000 \* (1.01) = 1.5150

Note that for transactions below the 50,000 threshold, FXP-A’s base rate, as provided in the initial `POST /rates/` API call, will apply.

{% hint style="warning" %}
Tiers only need to be set once by the FXP, and will continue to apply for that FXP until the FXP updates or deletes the tiers.
{% endhint %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.nexusglobalpayments.org/fx-provision/rates-from-third-party-fx-providers/improving-rates-for-larger-transactions.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.