What multi-currency processing is
Multi-currency processing is the payment setup that lets your business accept transactions in currencies other than its home currency and handle the funds through settlement. A customer might pay in pounds on your US website while your business receives dollars.
The currency shown at checkout and the currency deposited into your account are separate choices. If a transaction is submitted in a different currency from your settlement currency, the funds must be converted or handled as a separate currency balance.
A currency displayed at checkout is not necessarily a currency your business can receive in settlement.
How the currencies move
Your checkout presents a price in a selected currency, the customer authorizes payment in that currency, and your payment setup routes the transaction for processing. If you settle in dollars, a currency conversion affects the dollar amount deposited. If you hold funds in the transaction currency, conversion happens later when you exchange or spend them.
Currency support is not the same at every stage. One card program lists over 100 submission currencies but only 18 settlement currencies, so accepting payment in a currency does not mean you can receive deposits in it.
What it means for your costs and cash flow
Your provider's fee schedule determines whether a foreign-exchange conversion charge or cross-border transaction charge applies. Exchange rates also affect your proceeds: a $100 illustrative sale priced in a foreign currency does not guarantee a $100 deposit in US dollars.
If your revenue and expenses are in different currencies, exchange-rate changes can alter your margin between the sale and the time you convert or spend the funds. Holding a foreign-currency balance delays conversion, but leaves your business exposed to changes in that currency's value.
How processing differs from multi-currency pricing
Multi-Currency Pricing (MCP) is the customer-facing part: it lets you display or set prices in a buyer's local currency. Multi-currency processing is broader. It covers accepting the payment, handling any conversion, settling funds and recording the transaction.
For example, displaying a price in euros does not by itself establish that your account can settle in euros or hold a euro balance. Confirm the supported currencies at checkout and settlement separately before you build prices around them.
What you can actually change
Your currency settings affect both what customers pay and what your business receives. Compare the provider's conversion charges, settlement options and currency support before turning on sales in a new market.
- List the currencies customers can select and the currencies your account can settle or hold.
- Compare the exchange-rate method and any conversion or cross-border charges in your fee schedule.
- Price products with currency movements and the cost of conversion in mind.
- Reconcile each sale in its transaction currency and settlement currency.
- Map supported currencies. Get a list of currencies enabled for customer payments, settlement and balance holding, since those lists can differ.
- Review conversion charges. Identify the exchange-rate method and any conversion or cross-border fee that applies to each payment.
- Match currency flows. Compare your sales currencies with your business expenses to understand where conversion and exchange-rate exposure enter your cash flow.
Frequently asked questions
What is the difference between multi-currency processing and multi-currency pricing?
Multi-currency pricing is the customer-facing option to display or set prices in a buyer's currency. Multi-currency processing also covers accepting the payment, converting or holding the funds, settling them and recording the transaction.
Can customers pay in one currency while my business receives another?
Yes. A customer can pay in a foreign currency while your business settles in its chosen currency. The payment setup converts the funds when the transaction and settlement currencies differ, and the exchange rate and any applicable fees affect the deposit.
Does accepting a currency mean I can settle in it?
No. Submission currencies and settlement currencies are separate. One card program lists over 100 submission currencies and 18 settlement currencies, so confirm that your account supports the currency you want to receive.