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When sending payments in different currencies, Pooler handles currency conversion using real-time or quoted exchange rates. This guide explains how conversion rates work and how to manage them effectively.

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What are Conversion Rates?

Conversion rates determine how much of one currency you get for another currency. When you send a payment in a different currency, Pooler converts your source currency to the destination currency at the applicable rate.

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How Conversion Works

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Conversion Process

1

Payment Initiation

You initiate a payment specifying:
  • Source amount (in your currency)
  • Destination currency (recipient’s currency)
2

Rate Quotation

Pooler provides:
  • Exchange rate for conversion
  • Destination amount (converted amount)
  • Conversion fee (if applicable)
3

Rate Lock

Rate may be locked for a period (typically 5 minutes for quotes)
4

Conversion Execution

When payment is confirmed, conversion is executed at the quoted rate.

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Rate Components

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Exchange Rate Breakdown

ComponentDescription
Base RateMarket exchange rate
Based on interbank rates
Updated regularly
SpreadMargin added to base rate
Covers market risk
Varies by currency pair
Conversion FeeFixed or percentage fee
Applied to conversion
Separate from spread

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Rate Management

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Rate Monitoring

Monitor rates to optimize conversions:
ActivityDescription
Track Rate TrendsMonitor rate changes over time
Compare RatesCompare rates across different times
Identify PatternsIdentify favorable rate patterns
Rate AlertsSet alerts for target rates

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Rate Optimization Strategies

StrategyDescription
Strategy 1: Timing OptimizationTime conversions for favorable rates
Monitor rate trends
Convert during favorable periods
Avoid volatile periods
Strategy 2: Bulk ConversionConvert larger amounts to get better rates
Larger amounts may get better rates
Reduce per-transaction fees
Optimize conversion costs
Strategy 3: Rate LockingLock rates when favorable
Get quotes for target amounts
Lock rates in quotes
Confirm payments within lock period

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Rate Transparency

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Understanding Rate Quotes

Payment quotes include rate information: 
{
  "quote_id": "quote_123",
  "source_amount": 1000,
  "source_currency": "USD",
  "destination_amount": 1491000,
  "destination_currency": "KES",
  "exchange_rate": 1491,
  "conversion_fee": 1.5,
  "total_fees": 15,
  "expires_at": "2024-01-15T10:35:00Z"
}

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Rate Disclosure

All rates are disclosed in:
SourceDescription
Payment QuotesRate included in payment quotes
API ResponsesRate details in API responses
DashboardRate information in dashboard
Transaction RecordsRate used in transaction history

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Rate Validity

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Quote Expiration

Payment quotes expire after a period (typically 5 minutes):
AspectDescription
Expiration TimeShown in quote response
Rate LockRate locked until expiration
Re-quoteNew quote needed after expiration

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Handling Expired Quotes

try {
  await poolerClient.post('/payments/complete', {
    quote_id: expiredQuoteId,
    reference: 'PAY-001'
  });
} catch (error) {
  if (error.response?.data?.message?.includes('expired')) {
    // Get new quote
    const newQuote = await poolerClient.post('/payments/initiate', paymentData);
    // Confirm with new quote
    await poolerClient.post('/payments/complete', {
      quote_id: newQuote.data.data.quote_id,
      reference: 'PAY-001'
    });
  }
}

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Supported Currency Pairs

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Major Pairs

Pooler supports conversion between major currencies:
Currency PairDescription
USD ↔ NGNUS Dollar to Nigerian Naira
USD ↔ KESUS Dollar to Kenyan Shilling
USD ↔ GHSUS Dollar to Ghanaian Cedi
USD ↔ ZARUS Dollar to South African Rand
And moreCheck Supported Corridors API for full list
Contact support to request support for additional currency pairs.

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Rate Accuracy

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Rate Sources

Pooler uses:
SourceDescription
Interbank RatesMarket-based rates
Real-Time DataUpdated regularly
Transparent PricingAll rates disclosed

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Rate Guarantees

GuaranteeDescription
Quote RatesGuaranteed for quote validity period
Real-Time RatesBest available at time of conversion
No Hidden FeesAll fees disclosed upfront

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Best Practices

  • Always review exchange rates in payment quotes before confirming.
  • Monitor rate trends to identify favorable conversion times.
  • Lock rates in quotes when rates are favorable.
  • Implement logic to handle expired quotes and get new ones.
  • Understand all conversion fees, not just exchange rates.