This article covers frequently asked questions on Settlement currency for your Shopify store sales. Please see below:
- What is the difference between store currency, transacting currency and settlement currency?
- Is it possible to settle payments received in multiple currencies on a 'like-for-like' basis?
- Is it possible to settle in multiple currencies in countries where I don't have a local entity established?
- Is it possible to settle my Shopify sales in different currencies with Airwallex?
- Using Shopify Payments for cards, along with multi-currency pricing offered by Shopify for alternate payment method transactions processed by Airwallex
What is the difference between store currency, transacting currency and settlement currency?
Store currency: This refers to the primary or home currency used in your store and is automatically set based on the location of your store (e.g. AUD for Australian stores, USD for US stores). Currently, Shopify allows only one store currency per store.
Transacting currency: This refers to the currency that is displayed to your customers at the checkout when they make a payment. It is possible for this currency to be different from the currency displayed while browsing your store. For instance, a customer may browse in their local currency, such as USD, but during checkout, they would be shown AUD and make the payment in AUD.
Settlement currency: Also known as payout currency, this refers to the currency in which you receive your payouts (or net revenue) from Airwallex or from Shopify.
Is it possible to settle payments received in multiple currencies on a 'like-for-like' basis?
With Airwallex, we have the capability to settle transactions in 7+ currencies on a 'like-for-like' basis. This means that your funds will be settled directly into your wallet in the same currency that your customers used to make the payment. This eliminates the need for any unnecessary currency conversions. For instance, let's consider an Australian business that runs a Shopify store with USD as the store currency. When a customer completes a purchase on the store website and pays in USD, the business can receive their settlement in USD as well.
In order to enable this feature on your store, it is necessary to ensure that your Shopify store is configured to accept payments in the desired currency. This can be done by following these steps:
- Set the currency of your Shopify store to the currency in which you wish to settle. You can refer to Shopify's guide for instructions on how to do this. Please note that typically only one store currency is allowed per store.
- Ensure that your Shopify website and checkout are configured to accept multiple currencies at checkout. You can find guidance on how to do this in Shopify's guide on accepting multiple currencies at checkout.
- Verify that the payment method offered through Airwallex supports the desired transaction and settlement currency. You can view the list of supported payment methods and explore your options for settlement currency here.
To understand the fees associated with like-for-like, multi-currency settlements, please refer to the Fee Schedule here.
Is it possible to settle in multiple currencies in countries where I don't have a local entity established?
Indeed, it is possible. If you have configured the store currency and checkout currency in your Shopify settings to a supported settlement currency, you will have the capability to accept payments and settle transactions in that currency.
Is it possible to settle in multiple currencies for a single Shopify store?
Although Airwallex offers support for settlement in 7+ currencies, Shopify currently only allows one store currency per unique store. This means that the supported settlement currency is restricted to one currency per store.
To enable multi-currency settlement in your Airwallex account, you can create additional stores for different store currencies and regions that you want to support. For example, you can have one store for USD, one store for EUR, etc. Then, integrate your Airwallex Online Payments into each store.
Using Shopify Payments for cards, along with multi-currency pricing offered by Shopify for alternate payment method transactions processed by Airwallex
What currency will be used for the transaction (currency paid by the buyer)?
With multi-currency pricing on Shopify, the store currency and prices are automatically converted to the buyer's domestic currency. In these cases, the store currency will serve as the transacting currency. As long as your store currency is a supported transacting currency, your buyers will have the option to view alternative payment methods.
What will the settlement currency be?
It is also possible to choose the settlement currency for the relevant payment method, provided that it is supported by the alternate payment method as an option for settlement currency.
For instance, a business based in Hong Kong with a Shopify store using Hong Kong Dollars (HKD) as its store currency can offer DANA as an alternate payment method on their store website. This is because HKD is permitted as a processing currency with two available settlement currency options: HKD or USD.
What FX fees will be applied, and who will bear these?
Where the transaction currency and the settlement currency are not the same, we may charge you an FX conversion fee as applicable.
To understand indicative fees associated with like-for-like, multi-currency settlements, please refer to "FX Conversion Fee" section in Online Payment Fee Schedule for your respective region here.
The public fee schedule above might be differed with your actual agreement; you can further check with your Account Manager to understand fee specific to your account.
See all supported payment methods, transacting and settlement currencies here.