Troc Circle is an easy, secure, and fast netting platform that proposes group deals by offsetting receivables with payables. In the left example underneath: A owes B $9.000, B owes C $15.000, and C owes A $4.000. Our algorithm is programmed to recognize this as a financial circle where $4.000 can be netted out of every party’s owed amounts. The remaining result will be the right example underneath, where the total receivables have increased by 3 x $4.000 = $12.000 and simultaneously the total payables have decreased by 3 x $4.000 = $12.000. Although no actual money has been moved, the total debt in this financial circle has decreased.
As a result, the quantity and amounts of pending transactions for A, B & C have been reduced. Thus, when A and B make their due payments of $5.000 and $11.000 respectively, their transaction (and potential currency conversion) fees will be reduced as well, for these are based on a percentage of the total transferred amount.