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Discounts and Currencies

 

If you sell products in local currencies, note that the currencies have different effects on the percentage-off and fixed-amount discount codes you provide for customers.

 

In This Article

 


 

Fixed-amount Discounts

Fixed-amount discounts are configured based on your store currency. If the customer’s local currency is different from your store currency, the discount amount will be converted to the customer’s local currency. This conversion takes place when the discount is applied during checkout. Therefore, the discount amount fluctuates with the currency exchange rate.

For example, a discount of $2 may be converted to €1.74 on a certain day, and to €1.76 on the next day. Therefore, it is not easy to maintain the discount amount across multiple local currencies.

If you have configured a manual exchange rate, the discount will be converted to the customer’s local currency based on the manual exchange rate, instead of the current market exchange rate. For example, suppose your customer applies a discount of $5 to an order paid in Canadian dollars. In that case, the discount will be converted to an amount of Canadian dollars based on the manual exchange rate. If the manual exchange rate is 1.25, the discount is C$6.25.

 


 

Percentage-based Discounts

Percentage-based discounts (for example, a 10% discount for a certain order) are independent of currencies. Prices are calculated based on the specified percentage, and the settlement currencies customers use are not factored in.

For example, you can create a 10% discount for a T-shirt. The price of this T-shirt will be reduced by 10% during checkout.

Settlement Currency USD EUR
Regular Price $10 €8.72
10% Discount $1 €0.87
Discounted Price $9 €7.85
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