We place great importance on ensuring the quality of exchange rate data used by the ShopIntegrator service for in-page multi-currency pricing. We have four data feeds where we source exchange rate data from so that we are able to compare the rates from multiple providers as part of our data quality checks.
We source and compare exchange rates from the following international providers of foreign exchange rate market data:
The European Central Bank maintains the price stability of Europe's single currency for the euro area and the 16 European Union member countries using the euro as their national currency.
Bloomberg is an information services, news and media company that provides business and financial professionals with the tools and data they need to compete in fast-changing global financial markets.
OANDA.com is well established USA based Internet business providing foreign exchange data and services.
The Bank of Canada manages the monetary policy for the Canadian economy.
The most readily available information on currency exchange rates is based on InterBank exchange rates. InterBank exchange rates are established in the course of currency trading among a global network of over 1,000 banks on transactions usually above $1,000,000.
InterBank rates are not available through consumer or retail channels. Instead, cosumers will have to pay a higher rate of exchange when money undergoes a currency conversion because these transaction amounts are much smaller than the currency transactions between banks.
Our adjustment converts the Inter Bank rate to a more realistic consumer rate and makes the exchange rate more favourable to the shop owner when shoppers pay in another currency. The exchange rate used is so as to achieve a foreign currency payment which results in the shop owner receiving an order payment in their primary currency as close to the primary currency prices set on the products (before the payment gateway transaction fees are deducted).
The amount actually received by the shop owner in their primary currency from a shopper who pays in another currency will rarely ever match the equivalent order cost in your primary currency and may pay you an amount greater than or less than the equivalent order cost in your primary currency. This is a result of frequently changing market driven foreign exchange rate fluctuations and the payment gateway using their own set of exchange rates when converting a shoppers payment in another currency back to your primary currency so you receive the money for the order.
At 13:45 GMT each day the ShopIntegrator service pulls publicly available up to date foreign exchange rates data from the websites of each of the market data providers who have been listed previously.
An automated comparison takes place for each provider's exchange rates with the equivalent currency exchange rates from the other providers. A foreign exchange rate from a provider which is too different to the other provider's rates are discarded for failing the first quality check.
We only need a single exchange rate for each currency to be active in the ShopIntegrator system. The exchange rates which remain after the first quality check are assigned an order of preference depending on the source provider of the rate. The exchange rate sourced from a provider with a higher order of preference will be used in place of the rate from another provider with a lower order of preference. Our assigned order of preference from highest to lowest is: European Central Bank, Bloomberg, OANDA.com, Bank of Canada.
The second automated quality check compares the new rates against the currently active ShopIntegrator exchange rates. If each new rate is within a tolerance of the currently active exchange rate for the same currency, the new rate passes the second quality check. Rates which are outside the required tolerance are marked for manual verification by a ShopIntegrator system administror. In this instance the currently active ShopIntegrator exchange rate will remain active and will not be replaced by a new rate until the manual verification process has accepted the new rate. Otherwise, the new rate is automatically verified and accepted in to the system to become the currently active exchange rate used for multi-currency pricing.