To simplify the intricate fee structures faced by corporations, RIVO has introduced a system feature that enables the configuration of detailed, periodic predicted charges—such as risk fees and transaction fees. These predicted charges are automatically calculated based on predefined fee rules within the RIVO system.

This functionality is configurable for each bank, allowing users to include or exclude specific subunits when establishing fees.

Note: Currently, this fee engine is configured exclusively for guarantee and Export LC products; however, plans are underway to extend its functionality to encompass all products in the future.

Additionally, the system prevents duplicate entries for "Product," "Product Type," and "Step."

Please follow the steps below to configure the fee setup:

1.  Navigate to Administrator Settings → My Banks → Fee Agreements.
2. ➕ Add Fee Agreement
3. Click on "Add New" to access the Fee Agreement Details setup page.
4. ✏️ Enter the Fee Agreement details:
5. Agreement Name
6. Agreement Description
7. Organization Units
8. Bank Parent   
9. Bank Subunits
10. Valid From
11. Valid Until

Internal Fee Agreements

The Internal Fees functionality allows corporate administrators to configure fee agreements within the corporate organization structure, enabling parent units to charge subsidiaries internal management or guarantee fees instead of external bank fees.

Configuration in Fee Agreements

• A checkbox labelled “Internal fees” is available next to the Agreement Name field.
• When this checkbox is selected, the system identifies the agreement as an Internal Fee Agreement.

After Internal fees is enabled:

• The Bank Name dropdown is filtered to display only internal parties that act as Guarantors within the organization structure.
• This ensures that internal fee agreements can only be assigned to eligible internal entities rather than external banks.

Adding a New Fee Structure

➕️ Add a New Fee Structure

1. Click on "Add New" to open the Fee Structure setup interface.
2. Define the Fee Structure
3. Click "Add Fee" to enable and complete the following fields:
4. Fee Name – Provide a unique identifier for the fee (e.g., SS).
5. Fee Type – Select the fee category (e.g., Risk). Refer to the below table.
6. Fee Description – Provide additional information describing the fee’s purpose.

Configuring Conditional Fee Logic

When configuring a condition, the system allows the user to select different parameters in the IF section. The available options include the following.

Product

The Product parameter specifies the trade finance product to which the fee applies.

Examples:

• Export Letter of Credit (Export LC)
• Outgoing Guarantee

Example rule:
IF Product = Export LC
THEN apply advising fee.

This ensures that the fee is applied only to transactions involving Export Letters of Credit.

Product Type

The Product Type provides further classification within a product.

For example, under guarantees there may be different types such as:

• Performance Guarantee
• Financial Guarantee
• Bid Bond

Using product type conditions helps create more granular fee rules.

Step

The Step parameter refers to the stage of the transaction process where the fee should apply.

Examples of steps may include:

• Issuance
• Amendment
• Document Settlement
• Closure

Example rule:
IF Step = Issuance
THEN apply issuance fee.

This ensures that the fee is applied only during the relevant stage of the transaction lifecycle.

Tenor

The Tenor represents the duration or validity period of a financial instrument.

Fees can be configured based on the length of the transaction.

Example:

• Tenor less than 90 days
• Tenor between 90 and 180 days
• Tenor greater than 180 days

This is commonly used for risk-based or commission fees.

Origin Country

The Origin Country condition allows fees to vary depending on the country involved in the transaction.

Example:

• Different charges for domestic vs international transactions.
• Additional fees for certain jurisdictions.

Example rule:
IF Origin Country = Germany
THEN apply specific processing fee.

Deal Amount

The Deal Amount parameter allows fees to be applied depending on the value of the transaction.

Example:

• Transactions below €100,000 → fixed fee
• Transactions above €100,000 → percentage-based fee

This helps create tiered fee structures based on transaction size.

Purpose of the Message

This parameter defines the purpose or type of SWIFT or system message related to the transaction.

Examples:

• Issuance message
• Amendment message
• Advice message

Using this condition ensures that fees apply only for specific message events in the transaction lifecycle.

Adding Multiple Conditions

RIVO allows administrators to add multiple conditions using the Add Condition option. These conditions can work together to create detailed fee rules.

Example: IF ... THEN ...

This ensures the fee is applied only when both conditions are satisfied.

The IF section establishes the primary condition for fee calculation.

Utilizing AND / OR Logic

When specifying multiple conditions, users may select logical operators such as:

• AND
• OR

These operators dictate how the system evaluates multiple conditions.

AND Logic

Selecting AND requires that all specified conditions be met for the fee rule to apply.

• Deal Amount > 100,000
• Origin Country = Germany

THEN the configured fee will be applied.

OR Logic

Selecting OR means the fee rule will apply if any one of the conditions is satisfied.

• Deal Amount > 100,000
• Origin Country = Germany

This capability enables organizations to configure complex pricing scenarios without the need to create multiple fee agreements.

Fee Calculation Section

After defining the conditions, the THEN section determines how the fee will be calculated.

Administrators can configure:

• Charge Type (Fixed or Percentage)
• Amount
• Currency
• Minimum and Maximum limits
• Period
• Settlement method
• Calculation method
• Tax or VAT

Note :For transactional fee system default to Fixed

In this configuration, the calculation follows a Fixed Rate per Year model, prorating the fee according to the number of days the guarantee remains active.

• Name	Unit	Rate in	Calculation
  Fixed Rate per Year (365/366 days)	Day	Percentage per Year	Result = (Amount * Rate / 100) / 365 * Units

Viewing Calculated Fees

After applying the fee configuration and processing the transaction, the calculated fees can be reviewed in the following system locations:

1. Reports Section

Users may access detailed fee information through the reporting module by navigating to:

Reports → Applicant → Fee

2. Deal View – Predicted Fees

The calculated fees are also displayed directly within the Deal View under the Predicted Fees section.

Note: Please refer to our article for further information regarding the Fees Report- Reports on Fees – RIVO Help & Support