Currency conversion

Introduction

Yuno's currency conversion service allows you to settle payments in both your currency and your customer's. Currency conversion is the process of converting one currency into another. It involves using exchange rates to determine the equivalent amount in the target currency.

Benefits

• Global Reach: Allows businesses to operate internationally by accepting and making payments in multiple currencies.
• Customer Convenience: Customers can pay in their preferred currency, enhancing their buying experiences.
• Cost Efficiency: Optimizing conversion rates can reduce transaction costs.
• Revenue Optimization: Businesses can leverage favorable exchange rates to maximize profits.

Some use Cases

• E-commerce Platforms: Online stores that sell products internationally use currency conversion to display prices in local currencies and process payments accordingly.
• Remittance Services: Companies that facilitate money transfers across borders rely on currency conversion to ensure recipients receive funds in their local currency.
• Travel and Hospitality: Businesses in this sector use currency conversion to handle payments from international travelers.
• Investment Platforms: Fintech platforms that offer trading in foreign stocks, bonds, or cryptocurrencies use currency conversion to manage investments across different currencies.

Implementation

In Yuno, we connect different currency conversion providers, so you dont have to worry about the differences between each integration. The implementation of the service is going to depend on the currency conversion provider you choose to work with.

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Payment retries

Given that each payment will be using the conversion rate returned for an specific provider, this workflow does not support provider fallback in the payment route, as each provider rate may vary, occurring in possible customer disputes due to differences in the amounts.

Key Concepts

• Exchange Rate: The rate at which one currency can be exchanged for another. This can be a fixed rate or a floating rate that fluctuates based on market conditions.
• Base Currency: The currency you are converting from.
• Cardholder Currency: The currency you are converting to.
• Conversion Spread: The difference between the buy and sell rates, representing the profit margin for the entity providing the conversion service.
• Real-Time Conversion: Using up-to-date exchange rates to perform conversions at the exact time of the transaction.

API implementation

In order to be able to use the currency conversion service you have two API implementations options available.

A - Provider's rate service

The merchant can use the currency conversion service of an external provider and send the corresponding information directly in the payment in Yuno. In order to use this, please contact your technical account manager to make sure that the information is set properly, as every provider could ask for different information. For example:

• CIBC requires to send the converted amount and the provider_currency_conversion_id returned by their rate service in the payment.
• MercadoPago only requires the converted amount to be sent in the payment, it does not need a provider_currency_conversion_id. The merchant is responsible for sending the corresponding amount depending on the rate returned by their conversion service.

Example:

 "amount": {
        "currency": "COP",
        "value": 5000, 
        "currency_conversion": {
            "provider_currency_conversion_id": "AAA01SADOIAJSDLAKSJM",
            "cardholder_currency": "ARS",
            "cardholder_amount": 1146.55    
        }
    }

B - Yuno's rate service

Also, the merchant can use directly the currency conversion service of Yuno that gets the information from the provider of their choosing. Send the id of the conversion rate query and the amount data accordingly in the creation of the payment. In case of using this service, you will also need to send the id obtained in the currency conversion request so we can link the information if necessary. A currency_conversion.cardholder_amount will be returned depending on the provider's response. If no cardholder_amount is returned, the merchant will be responsible of sending the correct cardholder amount in the payment according to the rate received in the conversion_rate service. Example:

Rate Service

{
  "account_id": "fe14c7c6-c75e-43b7-bdbe-4c87ad52c482",
  "amount": {
    "currency_conversion": {
      "cardholder_currency": "USD",
    },
    "value": 10000,
    "currency": "COP"
  },
  "provider_data": {
        "id": "CIBC"
  }
}

Payment

As mentioned above, in order to use this, please contact your technical account manager to make sure that the information is set properly, as every provider could ask for different information. Given that in this case, you'll be using yuno's rate service, only the amount details and currency_conversion.id is required, not the provider_currency_conversion_id. For example:

    "amount": {
        "currency": "COP",
        "value": 5000, 
        "currency_conversion": {
            "id": "62fdcd6c-50ea-4640-985b-5656010fe5fD",
            "cardholder_currency": "ARS",
            "cardholder_amount": 1146.55    
        }
    },