Currencies, Conversions and Taxes

Last modified June 22, 2017

All FastSpring vendor accounts have a default currency. When you create a product, you must specify the price in at least that default currency. This currency will be used as a base for automatic currency conversions.

You can can control which currencies are available to your customers at the Store level. This should include currencies that will be accepted only by certain storefronts, because these settings control which currencies are available for product pricing as well. The currencies you select may also impact the payment methods available to customers; for example, GiroPay is only available when a purchaser is paying in Euros.


To control which currencies are available for all products and Storefronts in the Store

  1. From the Settings menu, select the Store Settings tab (selected by default), and then click Localization on the left-hand side of the page.

    Settings menu

    Example of the Store Settings tab of the Settings menu

  2. In the Available Currencies field, clear the check box next to each currency that you do not want the Store to support. Select the check box next to each currency that you do want the Store to support. 

      Click here for an alphabetical list of currency codes and their corresponding currencies
    Code Currency
    AUD Australian Dollars
    BRL Brazilian Reais
    CAD Canadian Dollars
    CHF Swiss Francs
    CNY Chinese Yuan
    CZK Czech Korun
    DKK Danish Kroner
    EUR Euros
    GBP British Pounds
    HKD Hong Kong Dollars
    INR Indian Rupees
    JPY Japanese Yen
    NZD New Zealand Dollars
    PLN Polish Zlotys
    RUB Russian Rubles
    SEK Swedish Kronor
    SGD Singapore Dollars
    USD United States Dollars
    ZAR South African Rand

     

  3. Click  at the top right-hand side of the page.  Please allow up to ten minutes for Live Storefronts to be updated.


You can override the currencies available - and/or the automatic detection of the customer's country via geo IP location - for each individual Storefront, if desired. For more information, see Overriding Currencies and Language Settings for Storefronts.


About Product Pricing, VAT and Sales Tax

When you create or edit a product, you have the option to set a price in each currency that is accepted by your Store. 

  • For prices in US dollars (USD), the price should not include VAT or sales tax; tax will be added to the price you enter if necessary . The price you enter should be the net price.
  • For prices in currencies other than USD (EUR, GBP and other), the price you enter should include the VAT; no VAT will be added to the price you enter. The price you enter should be the gross price.

If the only currency enabled is USD (US dollars), then visitors from all over the world see the price in USD. All applicable taxes will be included in the price shown. That is, the price shown will be the price you set in the Dashboard plus sales tax or VAT (value-added tax) as applicable depending on the visitor's location. See About VAT and Sales Tax for details.

The price shown in the Storefront is determined by the geographic location of the visitor (which is determined by the visitor's IP address). The country and currency selected by default will be based on the visitor's location. However, if you set a default country for the Storefront, overriding the geo IP detection, then the currency of the default country will be used automatically (provided that currency is enabled for your Storefront).

Enabling Automatic Currency Conversion

If your Store has a currency enabled for which you have not specified a price, FastSpring automatically converts the price from the default currency (usually USD) to the currency used by the visitor. For example, suppose EUR is enabled, but the price is provided only in USD. Visitors in Europe will see prices that are converted from USD. Note that any tax is added first and the conversion is performed second. 

Similarly, if GBP is enabled and the price is set in GBP, visitors in the UK see the specified price in GBP. If GBP is enabled, but the price is not set in GBP, visitors in the UK will see a price in GBP that has been converted from USD on the fly.


Automatic Currency Conversion Rules

  1. If the product has a price defined in the currency used by the customer's country, that price will be displayed on the store.
  2. If the product has no price defined in the customer's currency, currency conversion will occur automatically. If the Store's default currency is one of the major currencies below:
    AUD, CAD, CHF, DKK, EUR, GBP, HKD, JPY, NOK, NZD, SEK, SGD, USD, ZAR
    ...and the currency to convert to (the customer's currency) is also one of the major currencies above, the system will get the Oanda exchange rate, mark it 3.5% higher to adjust for currency fluctuations, and then convert the price defined in the default currency (the driving price) to the customer's currency using the mark-up rate. If the currency to convert to is not a major currency, the Oanda exchange rate will be marked 5.5% higher to determine the conversion rate.
     

Price Decoration

The price decoration feature (sometimes called "price beautification") aims to make converted or calculated prices look similar in style to the products' original or base prices.

This feature takes effect when converting USD prices to a non-USD currency - i.e., when a product's price has not been defined in the customer's currency.

Rather than potentially finishing with and displaying an odd decimal portion resulting from the conversion, if the decimal portion of the converted / calculated amount is different to the decimal portion of the driving price (the base price), the conversion / calculation process will round up in order to replace the decimal portion of the converted amount with the decimal portion of the driving price.

Example

For example, if the calculated amount is 6.77 GBP but the driving price is $9.99 USD, the system will round up from 6.77 GBP to 6.99 GBP so that the decimal portion (.99) matches.

This decoration is processed at the unit level - not the extended price (price * quantity) nor on the order subtotal. Therefore, the effects of the decoration process become more pronounced when multiple quantities are purchased.

Example, continued

To continue the above example, the price for one unit gets converted from $9.99 to 6.77 GBP and decorated to 6.99 GBP.  Then, that unit price of 6.99 GBP is multiplied by the quantity purchased to come up with the extended price.

For a single unit, the difference between 6.77 and 6.99 is just 0.22 GBP, but this conversion is done per unit.  Thus, if the customer purchases a quantity of 10, the net effect of price decoration will be 2.20 GBP (i.e., 0.22 * 10). 

As with transactions that do not involve price decoration, the net proceeds for transactions with price decoration (including the difference between the base price and the final, calculated price) are paid to you, the seller.