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Adapt currency settlement

[Music] hello David here at merchant accounts dot CA I wanted to tackle the topic of settlement currencies for multi currency transactions this is something that confuses everyone every merchant that touches multi currency transactions at least at the start Erlik how do I set this up what you need to know at a high level is when you process a transaction you can process it in your domestic currency so if you're a Canadian merchant obviously you can process transactions in Canadian dollars if you're targeting our customers in the United States yes you can build them in US dollars so a merchant accounts CA as an example we would give you a US currency merchant account and any time you ran a transaction through your US currency merchant account the customers card is billed in u.s. dollars but this raises a question how do we pay you because you're a Canadian merchant but you billed someone in u.s. dollars what happens next well there's control in fact the obvious thing is we could either pay you in US dollars or Canadian dollars and actually we can do either but only one options good our ideal at least so you want to be paid in the same currency that you processed the transaction in the reason why is anytime currencies convert there's costs involved just like in in real life if you walk into your bank and you have thousand dollars Canadian you want to convert it into US dollars you don't get the mid-market right you the the bank has to facilitate the transaction and there's you pay an exchange fee for that credit card transactions are more complicated because someone will use their credit card today the file will be batched out and settled over the card network of the next day and then as a merchant you'll be paid at some point later maybe later that day maybe the next day but the whole point is it's not like walking up to a counter going boom here's a thousand dollars change it over for me there's a time issue here and there can be currency volatility in general the FX rate that you pay the the currency conversion rate when you let currencies be converted is it's about equivalent to over-the-counter Bankrate it's certainly not as competitive as a currency brokerage rate that you could get if you used like a specialized currency broker so the general rule is this if you have the ability to process and receive funds in a foreign currency take advantage of it it will save you money there are times when you can't do there are lots of times you can't do that one of the examples is if you wanted to process transactions in pound sterling or Euros so if African Rand those settlement currencies are not generally available in North America they're not supported so if you had customers in South Africa and you want to process transactions...