Multi-currency conversions and risk
Currency conversion occurs at the time of the transaction, such as when a charge is created or when you issue a refund.
This documentation applies to stores that sell products in multiple currencies and covers risks associated with currency conversions. Recharge is in the process of releasing multi-currency to all eligible Shopify merchants.
- Migrated Shopify Checkout Integration
- Shopify Checkout Integration
Currency conversion and risk
Currency rates are constantly fluctuating. Whenever there is a time delay in processing payments or refunds, there is a possibility that you may lose or gain money due to currency conversions.
You can lose or gain money in the following situations:
- Orders are refunded
- Customers add or swap products for an upcoming order
- Capturing payments manually
- Exchange rates are set manually
- Chargeback is issued
Checkout and recurring transactions
The price and conversion rate used are calculated based on your setup within Shopify Markets.
The currency conversion rate does not change on recurring orders and the rate will stay the same as the first order your customer places. This is due to the customers subscription price being set when the initial order is placed.
You can see the breakdown of a transaction in the Shopify order timeline.
Add or swap products
If new products are added or an existing subscription is swapped to a different product variant using Recharge's merchant portal, customer portal, or API, the price is calculated based on an automatic exchange rate and does not leverage the Shopify Markets price lists.
This may cause discrepancies in expected prices as the automatic exchange rates calculated by Recharge will differ from the prices offered on your storefront.
In this scenario, the automatic exchange rate is calculated by Recharge. Recharge calculates the price in the customer’s presentment currency by multiplying the product price in the store currency and the foreign exchange rate at the close of the prior business day.
Recharge retrieves its foreign exchange rates daily from Open Exchange Rates. This may cause discrepancies in expected prices if you are selling in markets with volatile exchange rates.
In most cases, shipping rates are determined by Shopify on checkout and recurring orders.
For Recharge stores that use Recharge Shipping zones and rates to calculate shipping rates for recurring orders, Recharge calculates the shipping price in the customer’s presentment currency by multiplying the store currency shipping price and the foreign exchange rate at the close of the prior business day.
There is often a time gap between when a customer creates an order and when they make a return. For refunding customers, the amount refunded should be the exact amount the customer paid in their local currency at the time of checkout. You may lose or gain money due to currency conversions from the exchange rates at the time of the refund.
The currency conversion calculated during a refund is handled by your payment service provider.
Stores can sell in multiple currencies but payouts will always be settled in the default store currency. The payment service provider handles the currency conversion before settling the funds in your account.
Recharge is not responsible or involved in this process.
Recharge invoices all stores in United States dollar (USD). When selling in multiple currencies, the charge amount is converted to USD at the time of the transaction.
Refer to the charge processed export to view the conversion rate used to calculate your invoices.
- Conversion rate: The rate used to convert your store currency to the presentment currency.
- FX rate: The current market exchange rate. It is the pricing method used to surface presentment currency prices in the widget, the merchant portal and the customer portal.
- Presentment currency: The currency that the customer uses when they pay for their orders at checkout.
- Store currency: The main currency your store uses to set the prices of products and appears on your reports. This can be checked in Shopify by clicking Settings and Store Details.
- Payment service provider: The third-party company leveraged by stores to collect payments from customers.
Didn’t find what you’re looking for?Contact us