Mid-market rate
Pricing & RatesThe mid-market rate is the midpoint between the current buy and sell prices for a currency pair. The term interbank rate is often used for wholesale rates quoted between financial institutions, so it is related to the mid-market rate but does not always mean exactly the same thing.
It is a useful benchmark when you're checking a transfer quote, but it is not usually the rate available for a customer payment. A provider applies an
exchange rate margin to the benchmark rate to cover the currency conversion service. On a large transfer, a small difference between the benchmark and your quoted rate can change the amount received.
Exchange rate margin
Pricing & RatesAn exchange rate margin is the difference between a reference rate, such as the mid-market rate, and the rate offered for your transfer. It is one way a provider charges for converting one currency into another.
The practical figure to compare is how much currency the recipient receives for the amount you send. Your Currencyflow quote includes a transparent, competitive margin based on the transfer size and currencies involved, and the agreed rate is fixed when you confirm. There are no payment transfer fees, so there is no separate transfer charge to add afterwards.
Forward contract
Pricing & RatesA forward contract lets you agree an exchange rate now for a currency conversion that will settle on a future date. People often call this locking in or fixing a rate.
It can make the sterling cost of a future property payment, invoice or other large commitment easier to budget. You know the agreed rate in advance, but you will not benefit if the market later moves in your favour, and changing or cancelling the contract may involve a cost. Currencyflow may ask for a deposit, with the balance due before settlement.
Target rate order
Pricing & RatesA target rate order lets you choose an exchange rate for a future currency conversion. If the target rate becomes available and the order can be filled, the exchange is booked automatically, but there is no guarantee the target will be reached.
This differs from a
forward contract, which fixes an available rate now for settlement on an agreed future date. A target rate order waits for a rate that is not currently available, so there is no fixed settlement date before it triggers; once filled, the exchange will usually be binding even if the market later moves further in your favour. Funding requirements vary by provider and order type, and if the target is not reached before the order expires or is cancelled, no exchange is booked.
Spot transfer
Pricing & RatesA spot transfer is a currency exchange agreed at the rate quoted now for settlement soon afterwards, usually within two business days. It is used when you need to exchange and send money now rather than fix a rate for a later date.
The quoted rate is set when you confirm the transfer. The
value date may be the same day, the next business day or two business days later, depending on the currencies, cut-off times and market conventions. The recipient's bank may still need additional time to credit the funds after the currencies have settled.
Currency peg
Pricing & RatesA currency peg is an exchange-rate policy that keeps one currency at, or within a narrow range of, a set value against another currency or a basket of currencies. A central bank or monetary authority supports that rate through its policy and market operations.
A peg can make one currency pair relatively stable, but it does not make every conversion involving that currency stable. For example, a currency pegged to the US dollar can still move against sterling as GBP/USD moves. Your transfer rate can also differ from the official peg because the provider's exchange rate margin still applies.
Base currency
Pricing & RatesIn a currency pair, the base currency is the first currency and the quote currency is the second. The rate shows how much of the quote currency equals one unit of the base currency.
For GBP/EUR, GBP is the base currency and EUR is the quote currency. A rate of 1.17 means £1 buys €1.17 before any provider margin is applied. If GBP/EUR rises, one pound buys more euros; if it falls, one pound buys fewer euros.
Value date
Pricing & RatesThe value date is the date on which the currencies in a transaction are due to settle and the funds become available to the receiving financial institution. It is not always the same date you agreed the exchange.
A Friday trade may have a later value date because weekends or bank holidays do not count as settlement days for the currencies involved. A missed cut-off time can also move the value date to the next business day. The recipient may see the money later if their bank needs more time to process the incoming payment.
SWIFT
Payment MechanicsSWIFT is a secure messaging network that financial institutions use to send standardised payment instructions. It does not move or hold the money itself; the banks involved settle the payment through their accounts and payment systems.
For an international transfer, a SWIFT message can carry the sender, beneficiary, bank, currency and payment reference details. A payment may pass through one or more
correspondent banks when the sending and receiving institutions do not have a direct relationship. That can add processing steps, and intermediary banks may deduct charges before the funds reach the beneficiary.
SEPA
Payment MechanicsSEPA, the Single Euro Payments Area, is a set of common rules and standards for euro payments across participating European countries and territories. It covers euro credit transfers and direct debits, including standard and instant credit transfers.
A SEPA payment must be in euros, even when the sending or receiving account is in a non-euro country within the scheme. You will normally need the recipient's
IBAN. Standard and instant options have different timings and availability, while a payment to a European account in another currency may use
SWIFT instead.
Faster Payments
Payment MechanicsFaster Payments is the UK system for near-real-time sterling payments between participating UK accounts. It operates day and night, every day, although each bank or payment provider can set its own customer limits and controls.
When you send pounds from a UK bank account to fund a transfer, the payment may travel through Faster Payments. Funds are usually available almost immediately and can sometimes take up to two hours, but fraud checks, bank processing or indirect participation can make it take longer. It is a domestic GBP payment system, not the system that carries the onward international transfer.
IBAN
Payment MechanicsAn IBAN, or International Bank Account Number, is a standardised account identifier used to route payments to bank accounts in countries that use the IBAN system. It contains a country code, check digits and national bank and account details in a fixed format for that country.
You will usually need the beneficiary's IBAN when sending euros through
SEPA or paying an account in many other countries. The length varies by country, so do not add or remove characters to make it look familiar. An IBAN can pass a format check and still belong to the wrong person, so confirm it with the beneficiary before sending.
Sort code and account number
Payment MechanicsA UK sort code is a six-digit number used to identify the payment service provider and routing point for an account. The account number is usually eight digits and identifies the individual account.
For a sterling payment to a UK account, you will normally need the beneficiary's registered account name, sort code and account number. Some international payment routes also ask for a UK IBAN or SWIFT/BIC, so use the details supplied for that specific payment. A correct sort code does not prove that the account number or beneficiary name is correct.
Routing number (ABA number)
Payment MechanicsA routing number, also called an ABA routing number or routing transit number, is a nine-digit code used to identify a US financial institution. It is used in US payment systems such as ACH and Fedwire.
When sending US dollars to a US account, the beneficiary may need to give you both their account number and the routing number for the payment type. A bank can use different routing numbers for ACH payments and wire transfers, so do not assume the number printed on a cheque is the right one for an international payment. Ask the beneficiary to use their bank's incoming wire instructions.
Correspondent bank
Payment MechanicsA correspondent bank provides payment and account services to another bank, often in a country or currency where that bank has no direct access. It can act as an intermediary between the sending bank and the beneficiary's bank.
A cross-border payment may pass through a correspondent bank before it reaches the recipient. Each additional institution must receive, screen and pass on the payment, which can affect timing and may result in an intermediary charge. The route is normally set by the banks and currency involved, rather than chosen by the sender.
Cross-border payment
Payment MechanicsA cross-border payment is a payment in which the payer and beneficiary, or their payment providers, are in different countries. It may involve a currency conversion, but it does not have to.
Sending pounds from the UK to a euro account in Spain involves both a cross-border payment and a currency conversion. Sending euros from a UK euro account to Spain is still cross-border even though the currency stays the same. The payment route, account details, checks and cut-off times determine how it moves and when it arrives.
Same-day transfer
Payment MechanicsA same-day transfer is a payment processed or delivered on the same business day it is instructed. It is a service description, not a single payment system, and 'sent today' does not always mean the beneficiary's account will be credited today.
Currencyflow can send most major-currency payments on the same day once your funds have arrived and any required checks are complete. Whether the recipient sees the money that day also depends on the currency's
cut-off time, the payment route, time zones and the receiving bank. For a deadline, confirm which stage is expected to happen the same day.
Cut-off time
Payment MechanicsA cut-off time is the latest time a bank or payment provider can receive funds or an instruction for processing on a particular business day. Instructions received later are usually handled on the next eligible processing day.
Cut-off times differ by currency, payment system, bank and type of transfer. Missing one can move the
value date or the recipient's expected credit date, even if you agreed the exchange earlier. Bank holidays and time-zone differences can effectively make the usable deadline earlier than the stated clock time.
Beneficiary
Payment MechanicsThe beneficiary is the person, business or organisation designated to receive a payment. The beneficiary bank is the financial institution that holds the receiving account.
Use the exact account name and bank details supplied by the recipient, especially for a property payment, business invoice or new payee. A mismatch can cause a payment to be delayed, rejected or credited to the wrong account. Check any change of details through a trusted contact method before sending a large amount.
FCA authorisation
Compliance & RegulationFCA authorisation means a firm has met the Financial Conduct Authority's standards and has permission to provide specified regulated products or services. Authorisation is activity-specific, so the Financial Services Register should be checked for the firm's current status and permissions.
Currencyflow Limited itself is not FCA-authorised. Payment services for Currencyflow are provided by Sciopay Ltd, which is authorised by the FCA as an Authorised Payment Institution under firm reference number 927951. Checking the legal name and reference number helps you confirm which firm is regulated and what it is permitted to do.
Safeguarded funds
Compliance & RegulationSafeguarding is the process regulated payment and e-money firms use to protect relevant customer funds, usually by keeping them separate from the firm's own money. It is different from deposit protection under the Financial Services Compensation Scheme.
Funds received for Currencyflow payment services are safeguarded by Sciopay Ltd in line with its obligations as an FCA-authorised payment institution. If a payment firm fails, safeguarded funds are intended to be available for return to customers, although repayment can take time and insolvency costs may affect the amount returned. This is why it matters to check both the provider's regulatory status and how client funds are handled.
E-money institution (EMI)
Compliance & RegulationAn e-money institution is a financial firm authorised or registered to issue electronic money. E-money is prepaid monetary value stored electronically and accepted as payment by someone other than the issuer.
An EMI may provide an online wallet, prepaid account or other non-bank payment service, and authorised EMIs must safeguard relevant customer funds. Money held with an EMI is not a bank deposit and is not covered by FSCS deposit protection. Sciopay Ltd, Currencyflow's current payment partner, is an Authorised Payment Institution rather than an EMI.
AML (anti-money laundering)
Compliance & RegulationAML means anti-money laundering. It covers the laws, checks and controls used to stop financial services being used to move criminal proceeds or support other financial crime.
For an international transfer, AML controls can include identity checks, sanctions screening, transaction monitoring and questions about the purpose of the payment. A request for more information does not mean the customer is suspected of wrongdoing; providers apply checks according to the risk of the customer and transaction. That is also why there is no single amount that automatically triggers every AML check.
KYC (know your customer)
Compliance & RegulationKYC means know your customer. It is the process a financial provider uses to identify a customer, verify their identity and understand who is using the service and why.
You may be asked for photo ID, proof of address and information about the purpose of your transfer. A business customer may also need to identify its owners or controllers. KYC forms part of customer due diligence and can continue after account opening, so a provider may ask you to refresh information or explain a transaction later.
Source of funds
Compliance & RegulationSource of funds means where the money for a particular transfer came from, not simply the bank account it is being sent from. The provider may need evidence that connects the payment to its legitimate origin.
Examples include accumulated salary, property-sale proceeds, an inheritance or business income. Depending on the transfer, evidence might include bank statements, payslips, a completion statement, probate documents, an invoice or company accounts. These checks are risk-based, so the documents needed depend on the circumstances rather than one universal transfer threshold.
FATCA / CRS
Compliance & RegulationFATCA and CRS are tax-information reporting systems that require financial institutions to identify certain account holders and report relevant financial-account information. FATCA is a US regime focused on US taxpayers and accounts, while the Common Reporting Standard supports automatic exchange between participating tax authorities.
A provider may ask for your tax residence, tax identification number, citizenship or a self-certification form. These questions help determine whether an account is reportable and where information must be sent. FATCA and CRS are reporting frameworks, not taxes on an international transfer and not a universal per-transfer reporting threshold.
FINTRAC / AUSTRAC / ZATCA
Compliance & RegulationFINTRAC, AUSTRAC and ZATCA are national authorities involved in financial reporting and compliance, but their roles are not identical. FINTRAC is Canada's financial intelligence unit, AUSTRAC is Australia's AML/CTF regulator and financial intelligence unit, and ZATCA is Saudi Arabia's zakat, tax and customs authority.
Canadian and Australian reporting entities submit specified international-transfer information and suspicious-transaction reports to FINTRAC or AUSTRAC under local law. ZATCA's relevant role here is different: it receives financial-account reports under FATCA and CRS for international tax-information exchange. Routine reporting by a financial provider does not, by itself, mean the customer or transfer is suspected of wrongdoing.
FX broker vs. bank, what's the difference?
Industry & ProvidersAn FX broker is a common name for a specialist provider that arranges currency conversion and may also arrange the onward payment. A bank is a deposit-taking institution that provides a wider range of account, lending and payment services.
FX broker is not one regulatory status, so check the legal firm providing the payment service and its permissions on the Financial Services Register. When comparing a specialist provider with a bank, look at the rate you will receive, any separate charges, the expected arrival time, support and how funds are protected. Currencyflow is not a bank; its payment services are provided by FCA-authorised payment institution Sciopay Ltd.
Remittance
Industry & ProvidersA remittance is money sent to a person or household in another country, often to support family or cover regular living costs. In UK payments law, money remittance has a narrower meaning: a service that transfers funds without creating a payment account for the payer or payee.
A remittance can be a one-off payment or a regular transfer, and it may be sent electronically or through a cash-based service. If currency conversion is involved, compare the amount the recipient will receive as well as the payment route, timing and any collection or intermediary charges. Regular family payments may also need updated customer or source-of-funds information over time.
