Posted in Finance, Accounting and Economics Terms, Total Reads: 147
Definition: Multi-Currency Pricing
Multi-currency pricing is a financial service which is currently provided by Visa and MasterCard networks only. It allows the businesses to price their product in different currencies like Yuan, Yen, Euro, Peso etc. apart from their home currency. This is helpful to expand the presence of the business in the global market place. The buyers get to see the rate in their home currency and then decide whether to buy or not. Then if they decide to buy, they can pay in their home currency or in any currency they prefer. The payments to the sellers are received in their own home currency.
Example: Suppose a buyer from Japan wants to purchase an Ayurvedic Medicine from India. He will be able to vie the price of medicine in Rupees, Dollars, Yen and other currencies. He can make the payment in Yen or any other currency of his preference. At the same time the company selling the medicine will get the payments in Rupees.
Advantages of Multi-Currency Pricing
• It helps to localize websites and also expand to other regions
• Reduces the customer queries and chargebacks
• Considerably improve the ease of doing business internationally