When the currency of a payment differs to the currency of your deposit, WooCommerce Payments charges a currency conversion fee as part of the transaction. This fee is 1% or 2%, depending on the fees for your country.
The fee is added to the total transaction fees. For example, for a US account with the base transaction fee of 2.9%, for a transaction paid in GBP and deposited in USD using a US issued credit card, the fee for the transaction will be 3.9% + USD $0.30 (2.9% base fee + 1% currency conversion fee).
The currency conversion fee for a transaction is displayed in the transaction details timeline view.
Historical behavior ↑ Back to top
The fee charged for currency conversion has not changed since multi-currency transactions were first made available. However, the way the fee is charged and presented has changed as WooCommerce Payments has evolved.
Prior to June 7th 2021, the currency conversion fee was built into the foreign exchange rate used for the transaction. Under this system, to determine the exchange rate for a transaction, WooCommerce Payments would use the mid-market foreign rate and add an additional 1-2% to that rate. It then applied that to the charge amount to determine the equivalent amount in the deposit currency.
Because the fee was built into the exchange rate, the timeline view on the transaction details screen did not include the currency conversion fee in the fees breakdown. Instead, it was factored into the exchange rate displayed on this screen. This same behavior exists for all transactions made prior to June 7th.
From June 7th 2021 onward, the currency conversion fee was no longer charged as part of the foreign exchange rate. Instead, it was added as a separate fee line item to the transaction. This made it easier to present the full fee associated with the transaction in the fees on the timeline view on the transaction details screen.