Before a payment can be completed, all parties involved must agree to the terms of the payment. Those terms can include foreign exchange rates (if the payment involves currency exchange) and fees. Any of the parties involved in the payment, including intermediate instances, can set these terms. It’s important that the sender and receiver know what terms affect the payment, and what amount will finally make it to the receiver and beneficiary after all fees and exchange rates are applied.

Payment quotes allow the sender to review terms before requesting to send a payment.

  1. A payment quote begins when a sender creates a payment quote request . The quote request defines important payment parameters such as currency, amount, and receiver . It may also define additional parameters that include sending and receiving RippleNet accounts and payout methods to the beneficiary .
  2. Once the sender defines a quote request, they submit it to Ripple Payments through their RippleNet instance.
  3. Ripple Payments applies retrieved exchange rates and the Ripple service fee to the payment defined by the quote request to create one or more payment quotes.
  4. Ripple Payments returns the payment quotes to the sender . Each quote spells out the parties in the payment chain, what exchange rates and fees apply at each step, and what payment amounts result after exchange rates are applied and fees subtracted.
  5. If the sender agrees with the payment terms in a quote, they accept the quote and send payment details.
  6. Ripple Payments creates and processes a payment request based on the accepted quote.
  7. Ripple Payments sends the payment request to the receiver for validation and approval.

If the receiver doesn't approve the payment, they effectively reject the payment request.