When you send or receive payments via Veem, we automatically convert the money into the local currency at the time we receive the payment from the sending party. All transactions are local on both ends. The party that is converting the currency is buying the Veem Exchange Rate.
AN ACTUAL EXAMPLE
Say you’re a US based media company and you’ve just received an invoice from your web developer from the Philippines for US$1000. You create an Veem payment for US$1000 and authorize Veem to debit the exact amount from your Wells Fargo bank account. Your developer will be notified of the payment then asked for her banking details. Align Commerce will then send the exact amount of PHP 43,589 into her Bank of the Philippine Islands account using the blockchain technology we keep telling you about.
How did we determine the PHP 43,589 amount we sent to her? Using a theoretical internet rate or interbank rate (Google, Reuters, Bloomberg) of US$1 = PHP 44.43, Veem applied our 1.9% rate to get our final transaction foreign exchange rate of PHP 43.59. This is the rate we used to calculate how much we sent the web developer in the Philippines.