Adaptive Pricing
Adaptive Pricing is a Checkout and Payment Links feature from Stripe that converts prices to the local currency of customers using the Stripe-provided exchange rate, allowing customers to pay with supported payment methods. Fees and exchange rates for refunds and chargebacks may be different from what is initially applied.
What is Adaptive Pricing?
Adaptive Pricing is a Checkout and Payment Links feature available that converts prices to a customer’s local currency using the latest Stripe-provided exchange rates. This allows you to present prices in your customer’s local currency for 150 countries and unlocks payment methods that require local currency presentment.
Customers see prices converted to the relevant local currency based on their location, the exchange rate applied, and supported payment methods. They still have the option to pay in the original currency you set for your prices.
Turn on this feature from the Dashboard and see our technical documentation for more details.
Frequently Asked Questions
Why enable Adaptive Pricing?
Enabling this feature has been shown to result in higher revenue (averaging 17%+), higher conversion, and net new sales to new markets where customers predominantly pay in their local payment methods.
What are the fees?
Stripe applies a conversion fee of between 2-4% to the exchange rate you present to your customers. The fee applied is determined by Stripe and varies based on order value for the purposes of increasing customer conversion. Stripe charges a fee of 4% for orders under $500, 3% for $500-$1.5k, and 2% for orders over $1.5k. View the pricing page for current fees at Stripe.
Your customer’s bank may also charge them additional fees for purchases from overseas merchants, and you should disclose this to your customers.
Example:
If the mid-market exchange rate is $1 = €1, and a US merchant sells a $100 item to a German customer, the exchange rate applied will include a 4% conversion fee (i$1 = €1.04). In this case, the customer will be presented with the option to pay $100 or €104. Regardless of the customer’s currency selection, the merchant will receive $100. (€104 / 1.04), less applicable Stripe processing fees.
If the mid-market exchange rate has changed by more than 2% between the time of the customer’s purchase and Stripe’s settlement to the merchant, Stripe may apply the latest mid-market exchange rate for settlement.
For what period is the exchange rate guaranteed?
The exchange rate is guaranteed from when the Checkout or Payment Links session is created through settlement so long as the exchange rate doesn’t change by more than 2%. In the rare case that the exchange rate changes beyond this threshold, Stripe may apply the latest exchange rate when settling the transaction. Checkout and Payment Link sessions expire after 24 hours so customers who reload the session may see a different exchange rate applied with updated local currency prices.
What exchange rate is applied for refunds and chargebacks?
Refunds or chargebacks are issued in the currency that the customer paid with. Adaptive Pricing does not guarantee the same exchange rate for refunds or chargebacks. Because the latest Stripe-provided exchange rate is applied when issuing refunds or chargebacks, you may gain or lose revenue depending on how exchange rates have changed.
Can I turn Adaptive Pricing On/Off?
Yes, you can turn this feature on and off in the Dashboard.
What terms apply to Adaptive Pricing?
The Stripe Adaptive Pricing terms govern your use of Adaptive Pricing.