Exchange rate

Overview

2Checkout uses a fully automated exchange rate solution, locking the rate at the moment of purchase for each order, thus eliminating possible fluctuations between anticipated payouts and settlement.

Exchange rate

2Checkout locks the exchange rate as soon as transactions reach Complete status. When transactions are not processed in a like-per-like currency, 2Checkout applies a small mark-up covering the conversion costs and remitting in the settlement currency chosen by you.

The exchange rate for Purchase Orders is locked upon invoice generation.

This applies to all transactions with a different order currency from the payout currency set on the vendor account.

2Checkout updates the exchange rates daily based on two sources:

• The European Central Bank is the primary exchange rate provider
• XE (http://www.xe.com) acts as a fallback provider for currencies not available at the Central European Bank

Updated exchange rates automatically apply to next day purchases.

Refunds

For refunded orders, the exchange rate is calculated when the refund is processed.

Workflow

Control Panel

The exchange rate applied to the total payout amount depends on the currency:

• If the Total is displayed in a payout currency, the exchange rate applied to the Total is the sum of each order's exchange rate.
• If the Total is displayed in a non-payout currency, 2Checkout performs a double conversion applying the mark-up only once.

FAQ

1. Where does 2Checkout get the exchange rates from?
   
   • The exchange rates are provided by the European Central Bank (with XE serving as a fallback provider) and updated on a daily basis, applying our own Risk mark-up.
2. What is the 2Checkout Risk mark-up?
   
   • The mark-up is a risk management criterion, applied to transactions not processed in a like-for-like currency.
3. Are there any differences depending on the payment method?
   
   • Regular transactions: 2Checkout will lock the exchange rate upon marking the order as Complete.
   • Purchase Orders: 2Checkout will lock the exchange rate upon generating the invoice (order status: Awaiting payment).
   • Channel Manager: 2Checkout will lock the exchange rate at the moment of payment.
4. What happens to refunds & chargebacks?
   
   • 2Checkout will apply the exchange rate of the day the refund is processed. The same rule will apply to lost chargeback disputes resulting in a refund.
5. How can I change my payout currency?
   
   • You can change the payout currency right from your Merchant Control Panel. However, the new currency will come into effect starting with the next payout cycle.
6. Is there a way to extract exchange rate information programmatically via IPN?
   
   • Yes. We expose the FX_RATE, FX_MARKUP, and PAYOUT_CURRENCY parameters via IPN. For more details on how to use them, refer to this article: Instant Payment Notification.
7. Can you provide an example as to how exactly is the FX rate calculated?

The following scenario can help you understand how the FX rate is calculated. Let's assume that:

• Product price = 100EUR
• Your payout currency is set to USD
• Your customer chooses to pay in EUR
• Exchange mark-up (FXM) = 4%
• Commission = 6%

In this case,

Product Price EUR - Commission EUR = Amount to be paid in EUR

€100 - €6 = €94 

To pay in USD, 2Checkout converts the amount to be paid from EUR to USD and adds the FX Mark-up (FXM), as follows:

EUR to USD = 1.02

EUR to USD + FXM = 0.98

Amount to be paid in USD w/o FXM = $95.55

Amount to be paid in USD w/ FXM = $91.73

Commission - w/ FXM = 9.76%