Settlement Currency

What is Settlement Currency?

Settlement currency is the currency in which a merchant receives funds into their bank account. It is the final currency after all conversions and fees have been applied to a transaction.

For global businesses, the settlement currency may be different from the currency in which the customer paid. Choosing the right settlement currency can help merchants avoid unnecessary exchange fees and simplify their accounting.

Why It Matters

• Determines the final amount of money a merchant receives from international sales

• Affects the complexity of a business’s financial reporting and accounting

• Can help merchants hedge against currency fluctuations in global markets

• Influences the choice of bank accounts and payment providers for a business