> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usepooler.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Conversion Rates

> Understanding currency conversion rates and how they work in Pooler

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.

## 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.

## How Conversion Works

### Conversion Process

<Steps>
  <Step title="Payment Initiation">
    You initiate a payment specifying:

    * Source amount (in your currency)
    * Destination currency (recipient's currency)
  </Step>

  <Step title="Rate Quotation">
    Pooler provides:

    * Exchange rate for conversion
    * Destination amount (converted amount)
    * Conversion fee (if applicable)
  </Step>

  <Step title="Rate Lock">
    Rate may be locked for a period (typically 5 minutes for quotes)
  </Step>

  <Step title="Conversion Execution">
    When payment is confirmed, conversion is executed at the quoted rate.
  </Step>
</Steps>

## Rate Components

### Exchange Rate Breakdown

| Component          | Description                                                                    |
| ------------------ | ------------------------------------------------------------------------------ |
| **Base Rate**      | Market exchange rate<br />Based on interbank rates<br />Updated regularly      |
| **Spread**         | Margin added to base rate<br />Covers market risk<br />Varies by currency pair |
| **Conversion Fee** | Fixed or percentage fee<br />Applied to conversion<br />Separate from spread   |

## Rate Management

### Rate Monitoring

Monitor rates to optimize conversions:

| Activity              | Description                          |
| --------------------- | ------------------------------------ |
| **Track Rate Trends** | Monitor rate changes over time       |
| **Compare Rates**     | Compare rates across different times |
| **Identify Patterns** | Identify favorable rate patterns     |
| **Rate Alerts**       | Set alerts for target rates          |

### Rate Optimization Strategies

| Strategy                            | Description                                                                                                                                         |
| ----------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Strategy 1: Timing Optimization** | Time conversions for favorable rates<br />Monitor rate trends<br />Convert during favorable periods<br />Avoid volatile periods                     |
| **Strategy 2: Bulk Conversion**     | Convert larger amounts to get better rates<br />Larger amounts may get better rates<br />Reduce per-transaction fees<br />Optimize conversion costs |
| **Strategy 3: Rate Locking**        | Lock rates when favorable<br />Get quotes for target amounts<br />Lock rates in quotes<br />Confirm payments within lock period                     |

## Rate Transparency

### Understanding Rate Quotes

Payment quotes include rate information:

```json theme={null}
{
  "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"
}
```

### Rate Disclosure

All rates are disclosed in:

| Source                  | Description                      |
| ----------------------- | -------------------------------- |
| **Payment Quotes**      | Rate included in payment quotes  |
| **API Responses**       | Rate details in API responses    |
| **Dashboard**           | Rate information in dashboard    |
| **Transaction Records** | Rate used in transaction history |

## Rate Validity

### Quote Expiration

Payment quotes expire after a period (typically 5 minutes):

| Aspect              | Description                       |
| ------------------- | --------------------------------- |
| **Expiration Time** | Shown in quote response           |
| **Rate Lock**       | Rate locked until expiration      |
| **Re-quote**        | New quote needed after expiration |

### Handling Expired Quotes

```javascript theme={null}
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'
    });
  }
}
```

## Supported Currency Pairs

### Major Pairs

Pooler supports conversion between major currencies:

| Currency Pair | Description                                                                                     |
| ------------- | ----------------------------------------------------------------------------------------------- |
| **USD ↔ NGN** | US Dollar to Nigerian Naira                                                                     |
| **USD ↔ KES** | US Dollar to Kenyan Shilling                                                                    |
| **USD ↔ GHS** | US Dollar to Ghanaian Cedi                                                                      |
| **USD ↔ ZAR** | US Dollar to South African Rand                                                                 |
| **And more**  | Check [Supported Corridors API](/api-reference/utilities/get-supported-corridors) for full list |

<Info>
  Contact support to request support for additional currency pairs.
</Info>

## Rate Accuracy

### Rate Sources

Pooler uses:

| Source                  | Description         |
| ----------------------- | ------------------- |
| **Interbank Rates**     | Market-based rates  |
| **Real-Time Data**      | Updated regularly   |
| **Transparent Pricing** | All rates disclosed |

### Rate Guarantees

| Guarantee           | Description                          |
| ------------------- | ------------------------------------ |
| **Quote Rates**     | Guaranteed for quote validity period |
| **Real-Time Rates** | Best available at time of conversion |
| **No Hidden Fees**  | All fees disclosed upfront           |

## Best Practices

<Tip>
  * 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.
</Tip>