Expanding into new markets often brings a critical question: how should you present prices to international customers? While many businesses stick to a single settlement currency such as USD or GBP, this can create barriers for buyers abroad. Multi-currency pricing (MCP) addresses this challenge by letting you display prices in local currencies, removing unnecessary friction at checkout and aligning payment with customer expectations.
What is multi-currency pricing?
Multi-currency pricing (MCP) is a payment feature that allows you to display prices in the local currencies of your international customers. Instead of forcing a buyer in Japan to view prices in USD or GBP, MCP enables them to pay in yen, while you still settle the transaction in your home currency. This approach makes pricing transparent, reduces confusion at checkout, and helps align the payment experience with customer expectations. For businesses handling global payments, MCP can directly influence conversion rates by creating a smoother shopping experience.
How is it different from dynamic currency conversion?
Dynamic currency conversion (DCC) and MCP are often confused, but they work differently. With DCC, the payment provider converts the price at the point of sale using its own exchange rate, and the customer sees the cost in their home currency. The merchant has limited control over the FX rate and margins.
MCP, by contrast, allows you as the merchant to set prices directly in local currencies and decide how exchange rates are applied.
|
MCP |
DCC |
|
|
Control over pricing |
Merchant sets local currency pricing |
Payment provider sets exchange rate |
|
Customer view at checkout |
Prices displayed upfront in local currencies |
Prices converted at the point of payment |
|
FX margin management |
Merchant decides on FX rate application |
Provider adds markup to the exchange rate |
|
Consistency across channels |
Stable and predictable for customers |
Can fluctuate depending on FX rate timing |
How does MCP work in global payments?
MCP enables merchants to display prices in multiple currencies on their websites or at checkout. When an international customer shops, they see prices in their preferred currency rather than a foreign one.
Behind the scenes, the merchant configures exchange rates—either fixed periodically or updated dynamically based on the current FX rate.
When the transaction is processed, funds are converted back into the merchant’s home currency for settlement. This process improves transparency and reduces the risk of abandoned transactions due to unexpected currency conversion.
Types of businesses that use MCP
E-commerce retailers
Online retailers selling across borders often use MCP to display prices in local currencies. For example, a UK-based fashion site might show prices in euros for customers in France and USD for customers in the United States.
Travel and hospitality
Airlines, hotels, and booking platforms adopt MCP to serve international customers who expect to see local currency pricing when making reservations. A traveller booking a flight from Singapore to London is more likely to complete the transaction if the fare is displayed in SGD.
SaaS and subscription platforms
Software companies offering monthly or yearly subscriptions across markets often use MCP to bill customers in their local currency. This reduces churn by preventing confusion around fluctuating FX rates.
Marketplaces
Global marketplaces with multiple merchants use MCP to make cross-border transactions simpler. Buyers browsing in Japan can view products in JPY while sellers receive settlement in their preferred currency.
Retail and point-of-sale
Brick-and-mortar stores in tourist-heavy areas adopt MCP at checkout terminals to offer customers the option to pay in their preferred currency.
Benefits of multi-currency pricing
- Increased conversion: Customers are more likely to complete checkout when prices are displayed in familiar local currencies.
- Improved shopping experience: Transparency in pricing reduces hesitation at the point of payment.
- Greater customer trust: International customers feel confident when no hidden FX rate surprises appear during the transaction.
- Control over margins: Merchants can manage how the exchange rate is set, instead of leaving it to third-party providers.
- Reduced cart abandonment: When buyers see local currency pricing upfront, they are less likely to abandon their purchase at checkout.
- Competitive advantage: Offering multiple currencies signals readiness for global payments and broadens reach to new markets.
Challenges of multi-currency pricing
- Exchange rate management: Keeping rates competitive and updated can be complex.
- Technical setup: Implementing MCP within your payment processing systems may require integration and configuration.
- Regulatory and tax considerations: Selling in multiple currencies may trigger local compliance obligations.
- Reporting complexity: Reconciling transactions across multiple currencies requires strong accounting processes.
How merchants can implement MCP
1. Choose a payment service provider (PSP)
Merchants should assess PSPs that offer built-in support for multi-currency presentment and settlement. These providers typically manage exchange rate sourcing, checkout display, and settlement flows, ensuring compliance with card scheme rules and local regulations.
2. Integrate with commerce or order management platforms
The merchant’s e-commerce platform or catalogue system must be able to support multiple price lists or exchange-rate–derived pricing. Proper integration ensures that products, taxes, and shipping rules are displayed correctly in each market.
3. Align finance and treasury operations
Accounting and ERP systems need to capture both transaction currency and settlement currency. Finance teams should reconcile PSP reporting, while treasury teams may introduce hedging strategies to manage foreign exchange exposure.
4. Configure the customer-facing experience
Merchants work with their PSP and platform to set up currency selectors, location detection, and price-locking at checkout. Clear messaging helps customers understand they are paying in their chosen local currency, rather than through DCC.
5. Test, monitor, and optimise
Before going live, merchants should test the full MCP flow—catalogue, checkout, authorisation, refunds, and reporting. After launch, they track approval rates, FX margins, and customer behaviour to refine and improve performance.
FAQs about multi-currency pricing
MCP allows merchants to set and display prices in multiple currencies upfront, while DCC converts the transaction into the customer’s home currency at the time of payment, using the provider’s exchange rate.
Conclusion
Multi-currency pricing offers a clear advantage for merchants serving international customers. It improves transparency at checkout, reduces friction in payment, and allows businesses to manage currency conversion on their own terms. By offering local currencies, you create a more predictable and trustworthy shopping experience. Payment providers like Antom support MCP, helping merchants integrate local currency pricing into their global payments strategy.
