Like-to-Like Payment Settlement: Receiving funds in foreign currencies

If you process in foreign currencies and receive your money directly in those foreign currencies it’s called “like-to-like settlement”. This method prevents currency conversion from occurring before you receive your funds. Like-to-like processing is one of our core areas of expertise at merchant

There are a few major benefits to this, the primary of which is that you have total online payment gateway control. You choose if, and when, you want to exchange funds into another currency. (Compared to base currency settlement where you are at the mercy of the exchange rate on the day that you receive your money). Like-to-like settlement completely eliminates this problem, allowing you to hold funds foreign currencies for as long as you’d like.

Timing is not the only benefit however, because you it gives you the ability to convert funds using a FX brokerage or currency conversion provider of your choice. (The exchange rate offered by your local bank is likely not as competitive as a FX brokerage – more on this below).

Controlling the timing of your currency conversions, when combined with choosing a competitive provider for currency conversions, can provide tremendous cost savings. The phrase “tremendously major” is not over emphasizing the potential upside. We are talking about cost savings at a level that is rarely achieved in the field of payment processing. An example is provided further below.

This solution gives you power and control, but it comes with corporate, tax and banking requirements that only make sense if you are processing a relatively high volume of foreign currency transactions. We do quite a bit of consulting in this area so reach out if you want to discuss your project.

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