Rebates are repayments of commission charge and are paid by the bank using the application to the bank that assigned the business.

Normally, the bank using the application and its correspondent bank will have concluded a bilateral rebate agreement that regulates the scope of, and settlement period for, rebates.

As with all other fees and commission, settlement details for rebates are defined in the static data system for fees. In the MyModelbank, these fees are identified by using the code for the business sector together with 'REB'. For example, 'BOREB' defines rebates for Export Collections, whereas 'LEBREB' defines rebates for Export L/Cs.

Please note that when defining a fee condition, the condition itself has to contain a negative value. This will ensure that the amount calculated will be a negative amount and thus regarded as a credit in the settlement.

This rebate on commission is automatically defaulted in further processing. Default values are defined using a central rule (“RegisterSettlementWW”) for the SETMOD module as follows:

Rebates are not settled when they are established/calculated, but at a later time (usually dependent on the provisions of the relevant agreement). Rebates are therefore placed in the pool and settled either as part of subsequent transactions or a manual contract.