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authorChristian Grothoff <christian@grothoff.org>2021-01-19 21:29:09 +0100
committerChristian Grothoff <christian@grothoff.org>2021-01-19 21:29:09 +0100
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English fixes
-rw-r--r--design-documents/012-fee-schedule-metrics.rst16
1 files changed, 8 insertions, 8 deletions
diff --git a/design-documents/012-fee-schedule-metrics.rst b/design-documents/012-fee-schedule-metrics.rst
index 7e43fe6..8d079fe 100644
--- a/design-documents/012-fee-schedule-metrics.rst
+++ b/design-documents/012-fee-schedule-metrics.rst
@@ -13,11 +13,11 @@ This chapter discusses considerations for fees from different points of view (Ex
Motivation
==========
-Fees are necessary for covering costs that Exchange operators bear for offering their services established in-house or outsourced in a data center: Variable costs (e.g. electricity and wire fees for every wired transfer to bank accounts) and fixed-cost expenditures for hardware, company assets, marketing and staff, and so forth. They will allocate these costs to users. The Taler protocol therefore offers different types of fees for each type of transaction that may appear in the transaction cycle. There are six fee types available for selection by the Exchange operator, each with a specific value within the limits given by the protocol. The protocol itself is subject to the legal framework established by (supra-)national regulatory authorities.
+Fees are necessary for covering costs that Exchange operators bear for offering their services established in-house or outsourced in a data center: Variable costs (e.g. electricity and wire fees for every wired transfer to bank accounts) and fixed-cost expenditures for hardware, company assets, marketing and staff, and so forth. They will allocate these costs to users. The Taler protocol therefore offers different types of fees for each type of transaction that may appear in the transaction cycle. There are six fee types available for selection by the Exchange operator, each with a specific value within the limits given by the protocol.
-Any coin that has been generated or that is used (deposited) or refreshed can be charged with an applicable fee type. In addition to this, every wired amount of money can be charged with a wire fee. The six fee types are named as **Withdrawal**, **Deposit**, **Refresh**, **Refund**, **Wire fee** and **Closing**. The fee type 'Closing' is used for allocating costs that arise from an uncompleted withdrawal transaction when an amount of fiat money has to be wired back from the Exchange's escrow account to the bank account of origin.
+Any coin that has been generated or that is used (deposited) or refreshed can be charged with an applicable fee depending on the type of operation that was performed. In addition to this, wire transactions can be charged with a wire fee. The six fee types are named as **Withdrawal**, **Deposit**, **Refresh**, **Refund**, **Wire** and **Closing** fee.
-Fee types and their underlying metrics are intended not only to cover real costs in the long run, but also to reward users for their economic behaviour, to prevent misuse, and to allow Exchange operators to gain certain income and most probably profits. Exchange operators are thus determine the combination of fee types and the amount of each fee for every denomination of coins. Any chosen denomination (constant nominal value of coins preset by the operator by means of the Denomination key) will subsequently come along with a variety of fee types and their individually specified amounts.
+Fee types and their underlying metrics are intended not only to cover real costs in the long run, but also to reward users for their economic behaviour, to prevent misuse, and to allow Exchange operators to gain certain income and most probably profits. Exchange operators are thus determine the combination of fee types and the amount of each fee for every denomination of coins. Any chosen denomination (constant nominal value of coins preset by the operator for the respective denomination key) will must be configured with four fee amounts for the per coin operations. In contrast, the **Wire** and **Closing** fees that apply per wire transfer are configured for each wire method.
The Taler protocol offers the following fee types:
@@ -28,18 +28,18 @@ The Taler protocol offers the following fee types:
b. Refresh of coins at the end of their validity
c. Abort of transactions due to network failure
d. Refund
-4. **Refund**: For refunds or in case of contract cancellation by seller, per coin
+4. **Refund**: For refunds or in case of contract cancellation by seller, **per coin**
5. **Wire fee**: For aggregated amounts wired by the Exchange to the merchant's checking account, **per wire transfer**
-6. **Closing**: In case a withdrawal process could not be accomplished (the user's wallet did not withdraw the value from the reserve), **per wire transfer** from the Exchange's escrow account to the account of origin
+6. **Closing**: In case a withdrawal process did not complete (the user's wallet did not withdraw the value from the reserve) or could not complete because the user specified an invalid wire transfer subject, this fee is charged **per wire transfer** from the Exchange's escrow account to the account of origin
Proposed Solution
=================
-Whereas the Taler protocol determines types of fees, Exchange operators determine the upper and lower limits of fees using parameters. Once they have set the fee amount per denomination, the algorithm of the Taler payment system will allocate costs automatically to every generated coin respective to a wired amount.
+Whereas the Taler protocol determines types of fees, Exchange operators configure the specific fee amounts. Once they have set the fee amount per denomination, the algorithm of the Taler payment system will charge fees automatically.
-The fee structure and its underlying metrics are also bound to rules and expectations of financial regulatory authorities like the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht BaFin). Changes to the fee structure are therefore eligible only when they are in accordance with national or international laws and directives.
+The fee structure and its underlying metrics may be restricted by rules and expectations of financial regulatory authorities like the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht BaFin). The protocol does not allow retroactive changes for denomination keys that have already been announced. This protects customers against fee hikes for coins they already withdrew.
-Fees chosen by Exchange operators have to be explained to the users by means of comprehensive Terms and conditions of services that describe the fee types and amounts of fees and how they are calculated. Costs for wired amounts within the banking system (IBAN transfers to the Exchange's escrow account for the withdrawal transaction; IBAN: International Banking Account Number) have to be covered by users, so additionally Terms and conditions of their banks may be effective, too. These Terms of banking services are not part of the Taler payment system, nevertheless Exchange operators should inform users that each wired transfer may incur a fee.
+Fees chosen by Exchange operators have to be explained to the users by means of comprehensive Terms and Conditions of services that describe the fee types and amounts of fees and how they are calculated. Costs for wired amounts within the banking system (IBAN transfers to the Exchange's escrow account for the withdrawal transaction; IBAN: International Banking Account Number) have to be covered by users, so additional Terms and Conditions of their banks may apply, too. These Terms of banking services are not part of the Taler payment system, nevertheless Exchange operators should inform users that each wired transfer may incur additional fees.
Obligations of Exchange operators
---------------------------------