In-Cart Multi Currency Conversion

  • Processing banks require that the currency merchants charge in their stores match the settlement currency, i.e. the currency of their bank account.
    • This means that if you bank account is in USD, you must have your website charge customers in USD.
  • Some merchants would like to sell to customers all over the world, but do not want to set up True Multi Currency
  • The most common solution for this is to allow customers to take on the conversion costs through their bank i.e. In-Cart Multi Currency
    • If our site sells in USD and a customer goes through checkout with a EUR or CAD credit card, the site will allow them to get through the checkout process in USD
    • Their bank will the make the conversion for them and charge them a fee.
  • There are some Disadvantages to this solution
    • This solution makes the products more expensive for the customer due to the conversion costs.
    • It also obfuscates the true cost, as the customer does not necessarily know the cost of the product, conversion rate or bank fees.
  • There are also some advantages
    • It is much simpler for a merchant.
    • The merchant does not need multiple websites, processing banks or bank accounts.