Fees charging model

Institutions that use RippleNet can collect fees with their accounts. Accounts collect fees from processing transfers across RippleNet during a payment. You can configure fees for each of your institution's RippleNet instances. There are many configurable possibilities for how you can collect fees, including the following typical high-level strategies:

  • Sending Institutions collect fees from their originating customer.
  • Receiving Institutions collect various fees:
    • From Sending Institutions that hold a Nostro account on its ledger
    • From specific partners
    • For payments using specific payout methods

RippleNet supports the conventional OUR/BEN/SHA fees charging model:

OUR fee model

  • The sender covers all transfer charges
  • The beneficiary will receive the full amount of the transfer.

This fee model can be achieved by setting the quote type as RECEIVING_AMOUNT in the call to the Create quote collection operation.

Note

When using the OUR model, the ChrgBr field in the user_info should be passed as DEBT.

BEN fee model

  • The beneficiary covers all transfer charges

This fee model can be achieved by setting the quote type as SENDING_AMOUNT in the call to Create quote collection.

Note

When using the BEN model, the ChrgBr field in the user_info should be passed as CRED.

SHA Fee Model

  • The transfer charges are split between the sender and the beneficiary.
  • This usually means the sender pays for fees charged by the sending bank, and the beneficiary pays for the fees charged by the receiving bank.

This fee model can be achieved by setting the quote type as SENDER_INSTITUTION_AMOUNT or RECEIVER_INSTITUTION_AMOUNT in the call to Create quote collection.

Note

When using the SHA model, the ChrgBr field in the user_info should be passed as SHAR.

Component Value Description
currency_code Ripple recommends using ISO 4217 Currency Codes Configured for one currency, set by currency value
role_type SENDING, RECEIVING, INSTITUTIONSENDING, INSTITUTIONRECEIVING Role account plays in transfer
node_type INITIAL, INTERMEDIATE, or TERMINAL How node participates in payment flow
payment_type REGULAR, RETURN Configured to apply to regular or return payments
fee_type PERCENTAGE, FLAT_RATE Flat or percentage fee
value Value of the fee to be applied
partner_name String Provides the partner's RippleNet address
account_name String For fees that apply to specific accounts, provides account name
upper_limit BigDecimal Provides the upper limit of the slab
lower_limit BigDecimal Provides the lower limit of the slab

For more information, see Fees.