FK-POP-11 — "Where the money goes, and who takes what," Faisal Khan, August 2026. A single-page infographic on the flow of funds in a sponsored US money transfer. Note: this file is an image-only PDF with no extractable text layer; the summary below is taken from the rendered page. Subject: a $100 transfer traced through six hand-offs, with the governing claim that "every deduction is a contract term — not a market rate." Headline figures: $100.00 sent · $98.50 settled · 1.50% disclosed cost.
The chain — six hand-offs, left to right
| # | Stage | What happens | Balance |
|---|---|---|---|
| 01 | US sender | Retail customer initiates a transfer from a US account | $100.00 sent |
| 02 | Collection rail | ACH, card or wire moves funds off the sender's account | $99.00 after rail (−$1.00) |
| 03 | Principal licence holder | Sponsor receives the funds under its own licence — "you do not hold them" | $98.50 after sponsor (−$0.50) |
| 04 | Net available to settle | What is actually left to send abroad after both US-side deductions | $98.50 settles out |
| 05 | Licensed payout partner | Receives settled USD under a correspondent or payout agreement; FX applies here | FX spread converts |
| 06 | Beneficiary | Receives local currency — INR, MXN, VND, PHP | ≈ $98.50 less FX, delivered in local currency |
The balance is carried at each hand-off, with deductions shown against the stage that takes them.
Where money is extracted — four extraction points
| Stage | What is taken | Basis | On $100 | Who keeps it |
|---|---|---|---|---|
| 02 | Collection / processing | ACH, card or wire charge on the inbound leg | ~ $1.00 | Rail or acquirer |
| 03 | Principal / sponsorship fee | Transaction-based, e.g. 50 bps of face value | ~ $0.50 | Licence holder |
| 05 | Payout charge | Fixed or tiered, applied on the beneficiary side | Varies | Payout partner |
| 05 | FX margin | Spread over interbank on the USD→local conversion | Varies | You or the partner — per contract |
| — | Visible deductions | The two that appear on every transaction | $1.50 | 1.50% of principal |
The structural point is the asymmetry: only two of the four extraction points are visible on the transaction, and the two that "vary" — payout charge and FX margin — are the ones set by contract rather than by a published rate.
Fixed commercial charges — outside the per-transaction flow
Three charges sit outside the chain above and are billed separately rather than deducted from each transaction: a one-time onboarding and integration fee (fixed), a monthly platform or sponsorship retainer (recurring), and a minimum monthly volume commitment (if agreed).
The four terms that decide your economics — negotiated, not given
- FX ownership. Whether the spread is yours or the partner's — described as "the single largest lever in the model."
- Fee floor. Whether the sponsor fee carries a per-transaction minimum that punishes small tickets.
- Notice period. How long you have if the sponsor exits your segment.
- Customer data. Whether the book of business travels with you on termination.
The bottom line
Set against the $1.50 disclosed per $100: "The disclosed fees are the small half. Whoever keeps the FX spread keeps the business — and that is decided in the contract, not on the rate board." This is the same conclusion reached in the firm's fee paper FK-A038 (document 282), rendered here as a one-page visual.
Regulatory notice and caveats
The page carries a prominent regulatory notice: the transmission and movement of money are regulated activities and may require licences, registrations, approvals or other regulatory permissions in each jurisdiction of operation. The document is general information only, is not legal or regulatory advice, and readers should independently verify applicable requirements and obtain professional and regulatory guidance before commencing any activity.
A further caveat states the example is illustrative only: fee levels, FX ownership, payout charges and settlement mechanics depend entirely on the contract between the client, the principal licence holder and the payout partner. Figures are shown for arithmetic clarity and are not quoted rates. Nothing in the page creates an advisory, agency or contractual relationship. Footer: © 2026 Faisal Khan, LLC — "not legal advice."