How does Stripe handle currency conversion?
Currency prices vary daily. When you Google a currency conversion rate or look it up on an informational website, the rate displayed is called the “mid-market rate”. This is the average between the prices at which people are buying and selling the currency—the actual rate varies throughout the day and includes markups to the rate from financial institutions.
This is all to say that when Stripe does a currency conversion on your behalf, funds will usually be converted at a rate approximately 2% above the daily mid-market rate. You can look up the actual conversion for a particular charge in your Dashboard in real-time.
- Your business is based in France and your preferred currency is EUR. A customer from the U.S. pays $60 USD for a product on your site or app.
- Stripe converts the funds in partnership with our banking partners at daily rates. For example, let’s assume the rate is €0.88 per $1 (Note that the “mid-market rate” might be as high as €0.90 per $1).
- We’ll then deduct the standard Stripe fee, and deposit EUR in your bank account. In this case, the converted amount is €52.80, the Stripe fee is €1.78 (2.9% + 25c for an international card), and the net deposit is €51.02.
Yes, there’s two ways to go about it:
Businesses based in certain countries can add multiple bank accounts to their Stripe account. For any payments in currencies that are supported by one of your banks, we’ll deposit funds without conversion.
Though presenting a product’s price in local currencies has shown to increase conversions, you can still present the charge in your default currency and pass on any conversion fees to your customers (most likely to be charged by their banks).
If you use Stripe Connect, we’ve outlined a few additional considerations for your platform.