Currency exchange rates change daily and because payouts are made to you, they are subject to that day's currency exchange rate.
When looking up the exchange rate on the web, you will see the spot rate. This is the exchange rate where neither party involved in the exchange makes a profit. If the spot rate of 1 US dollar is at parity with 1 Canadian dollar and two people exchange US dollars and Canadian dollars at this rate, then both people have the same amount of wealth as they did before the transaction.
Banks typically don't use the spot rate. Instead, they use a buy rate and a sell rate. These rates are, respectively, slightly lower and slightly higher than the spot rate. This is how banks make money from exchanging currencies. If a US bank wanted to make a 5% profit on every exchange involving Canadian dollars, they will offer to buy 1 Canadian dollar for 0.95 US dollars; but will only sell 1 Canadian dollar for 1.05 US dollars.
In addition, if your bank charges foreign transaction fees, you may be subject to additional fees.
- If you are on the Business Plan and using Stripe to process your payments, your revenue will not be subject to currency exchange rates or foreign transaction fees (assuming the custom Stripe account you connect is set up to receive money in the currency your attendees are charged currently USD).
- Additionally, if you use Stripe as a payment processor, you deactivate the use of PayPal which is one of the easiest ways for customers to securely purchase online especially on mobile.
- However, by using HeySummit to process your payments, you are providing your customer with more flexibility - they can pay using PayPal and a wide range of credit cards.
- We offer direct bank transfers using a bank that treats transfers as local and has yielded the closest conversion rate we've seen. Customers who have opted to use this have saved hundreds in PayPal fees.
- Event organisers can choose to sub in a custom Stripe account so that you can bypass our systems if you wish.