This article explains how Airwallex automatically converts currencies for card purchases so transactions are less likely to fail when you don’t have enough funds in the transaction currency.
You can configure your primary currency and auto-conversion settings by navigating to “Cards” and then “Settings”.
How does the auto-conversion setting work?
With auto-conversion enabled, when you make a purchase on your card, we first check whether you have sufficient funds in the transaction currency cash balance, provided it is one of our supported Direct BIlling currencies. If you have sufficient cash balance, we will deduct the purchase from that currency’s balance.
If the transaction currency balance is insufficient, we check whether your primary currency balance can cover the entire purchase. If your primary currency balance can cover the full amount, we will deduct the equivalent amount from your primary currency balance using the prevailing foreign exchange rate plus an auto-conversion fee. Learn more about how our foreign exchange rates are determined here.
If the transaction currency or primary currency do not have sufficient balance, Airwallex will attempt to use the direct billing currency with the highest available balance
If the above currencies cannot cover the converted amount, the card payment will be declined.
We will only use funds from one currency — we do not combine balances from multiple currencies.
You can configure your primary currency and auto-conversion settings by navigating to “Cards” and then “Settings”.
With auto-conversion disabled
With auto-conversion disabled, when you make a purchase on your card, we first check whether your account has sufficient available cash balance in the transaction currency, provided it is one of our supported Direct BIlling currencies. If you have sufficient cash balance, we will deduct the purchase from that currency’s balance.
If the transaction currency is not in one of our supported direct billing currencies, we check whether your primary currency balance can cover the entire purchase. If your primary currency balance can cover the full amount, we will deduct the equivalent amount from your primary currency balance using the prevailing foreign exchange rate plus an auto-conversion fee. Learn more about how our foreign exchange rates are determined here.
If either of the above balances are insufficient, the card payment will be declined.
Examples
Example 1:
Rachel’s wallet balances: USD $50 and AUD $150. Her primary currency is AUD.
She makes a purchase for USD $100. The exchange rate at the time is 1 USD = 1.50 AUD.
- We first check the transaction currency balance (USD is a supported direct billing currency): USD $50 is not enough to cover USD $100.
- Next we check her account’s primary currency balance (AUD). USD $100 = AUD $150 (100 × 1.50). Rachael has AUD $150, so we use that AUD balance to pay the purchase. The amount deducted will be AUD $150 plus the auto-conversion fee,
Example 2:
Rachel’s wallet balances: USD $100, AUD $50, and EUR $0. Her primary currency is AUD..
She makes a purchase for EUR $100. The exchange rate at the time is 1 EUR = 1 USD = 1.5 AUD.
- We first check the transaction currency balance (EUR is a supported direct billing currency): EUR $0 is not enough to cover EUR $100.
- Next we check her account’s primary currency balance (AUD). EUR $100 = AUD $150 (100 × 1.50). The balance of AUD $50 is not enough to cover EUR $100.
- Next we check the direct billing currency with the highest available balance, which is USD. USD $100 is sufficient to pay for the purchase. The amount deducted will be USD $100 plus the auto-conversion fee,
What currency will I receive refunds in?
If the merchant issues a refund and the original purchase was in one of our supported direct billing currencies, the refund will be credited back in the original purchase currency.
For refunds of purchases in any other transaction currency, the refunded amount will be credited to your primary currency balance.
About exchange rates and fees
VISA provides a competitive exchange rate that is calculated daily and includes a small markup above the interbank rate depending on currency. VISA rates and their markups are subject to change and outside the control of Airwallex.