How Is Currency Converted

Products

• CA Payment Security
• ARCOT ECOMMERCE

Issue/Introduction

When the transaction currency and the base currency of the organization to which the user belongs are different, then RA automatically converts the transaction amount to the base currency of the organization.

Some rule operators in specific channels allow you to specify the threshold amount in multiple currencies, in addition to specifying it in the base currency of the organization. When such a rule is executed, the transaction currency is compared with the currencies in which the threshold amount has been specified:

• If a match is found, then the transaction amount is directly compared with the threshold amount in that currency. In this case, no currency conversion is required.
• However, if a match is not found, then the transaction amount is first converted to the base currency and then compared with the threshold set in the base currency.

Important! Setting one of the threshold amounts in base currency is mandatory.

How Is Currency Converted

Environment

Risk Analytics

Resolution

The following examples illustrate how this feature works:

Example 1

You have configured a rule with threshold amounts in USD, JPY, and AUD, while the organization base currency is USD. The following scenarios explain how currency conversion takes place during various types of transactions:

• Scenario 1: A transaction is being conducted in USD. Because the transaction currency is the same as the organization's base currency, the specified threshold is used without any need for currency conversion.
• Scenario 2: A transaction is being conducted in JPY. Because JPY is one of the currencies in which the threshold amount has been specified, the transaction amount is directly compared with the threshold amount in JPY. No currency conversion is required in this scenario.
• Scenario 3: A transaction is being conducted in EUR. Because EUR is not one of the currencies in which the threshold amount has been specified, the transaction currency is first converted from EUR to USD. The threshold value specified in USD is used for the comparison.

 

Example 2

You have configured a rule with threshold amounts in GBP, JPY, and AUD, while the organization base currency is GBP. The following scenarios explain how currency conversion takes place during various types of transactions:

• Scenario 1: A transaction is being conducted in GBP. Because the transaction currency is the same as the organization's base currency, the specified threshold is used without any need for currency conversion.
• Scenario 2: A transaction is being conducted in JPY. Because JPY is one of the currencies in which the threshold amount has been specified, the transaction amount is directly compared with the threshold amount in JPY. No currency conversion is required in this scenario.
• Scenario 3: A transaction is being conducted in EUR. Because EUR is not one of the currencies in which the threshold amount has been specified, the transaction currency is first converted from EUR to USD and then from USD to GBP. The threshold value specified in GBP is used for the comparison.