What it means
Quoted rate and delivered amount
A reference rate is not necessarily an executable price. The service’s spread, fees, available liquidity and quote expiry influence the amount actually received. A quote should identify which asset is sold, which is delivered and who bears price changes before execution.
Conversion and settlement are separate
A completed conversion can produce a provider balance without completing a bank payout. For a crypto payment, also identify the exact token and network. Accounting records should retain the original amount, applied rate, fees and resulting amount rather than only the final net balance.
Related concepts
Fiat currency, Price volatility, Payment settlement, Transaction fee.
In practice
A concrete example
A merchant compares a provider’s executable quote with the expected net payout, rather than assuming that a published central-bank reference rate is available for trading.
Technical notes & boundaries
The ECB publishes its reference rates for information and discourages using them as transaction rates. “Instant conversion” is a service claim that requires its own conditions.
Go to the source.
Original references used for this definition. Product details and standards can change.
