Processing Currencies

Payments in Different Currencies

PAY. can accept a payment in any supported currency. The currency in which the merchant submits the payment does not necessarily have to be the same currency in which the payer ultimately pays.

This depends on the payment option chosen. Some payment options only support one specific currency. When the original currency is not supported by the chosen payment option, PAY. converts the amount into a currency that the payment option does support.

Example

A merchant starts a payment of 100 GBP and the consumer chooses Wero of Bancontact. These payment options only support payments in euro (EUR).

PAY. therefore converts the amount of 100 GBP to EUR based on the applicable exchange rate. Suppose this results in €116,50, then the payment is offered to Wero or Bancontact for €116,50.

The payer then sees and pays €116,50 in EUR.

In short:

Merchant: 100 GBP → PAY.: currency conversion → Payment option: €116,50 EUR → Payer: pays €116,50 EUR

Daily Up-to-Date Exchange Rates

PAY. retrieves the current currency rates every day from the central bank system. These rates form the basis for the exchange rates PAY. uses when converting payments between different currencies.

By updating the rates daily, currency conversions are based on recent market information. The exchange rate used can therefore vary from day to day.

Conversion to the Merchant's Payout Currency

Conversion can also take place on the merchant's side. Suppose the merchant ultimately receives their payments in EUR, while a payment is started or processed in a different currency. In that case, a conversion to EUR must take place somewhere in the payment flow.

Depending on the payment method and the setup, this conversion can be carried out by PAY., the payment option, or an involved bank/card issuer.

A currency conversion may involve conversion costs and/or an exchange rate markup. Which party charges these costs and which exchange rate is applied depends on where in the payment flow the conversion takes place. The merchant pays the costs to PAY. 

Conversion by the Cardholder's Bank

The reverse can also occur.

For example, a merchant may start a card payment for €100 EUR, while the cardholder has a card or account held in GBP.

Merchant starts €100 EUR → card transaction is processed in EUR → cardholder's bank converts EUR to GBP → cardholder is charged in GBP

In that case, PAY. charges €100 in EUR to the card. The cardholder's bank or card issuer then performs the currency conversion. The exchange rate and any conversion costs of the bank or card issuer apply in that case.

Who Performs the Conversion?

The main principle is that costs can arise as soon as the currency needs to be changed somewhere in the payment flow. The conversion can take place at:

• PAY. – when PAY. converts the currency for further processing or payout;
• the payment option – when the chosen payment option requires a different currency;
• the payer's bank or card issuer – when the transaction is offered in a currency other than the currency of the payer's account or card.

The party that performs the conversion generally determines the applicable exchange rate and any conversion costs.

Like-for-Like

With Like-for-Like (L4L), no currency conversion takes place at PAY. The payment is processed and paid out in the same currency. As a result, PAY. does not charge any currency conversion costs.

For example:

Payment in USD → processing in USD → payout in USD

Although PAY. does not charge currency conversion costs with L4L, card payments may still incur additional scheme fees from the card network.

Card networks such as Visa and Mastercard may charge additional fees depending on, among other things, the currency, the country of the card issuer, and the characteristics of the transaction. These scheme fees are separate from PAY.'s currency conversion costs and can therefore also apply to a Like-for-Like transaction.

Possible Currencies