Currencies, Conversions, and Taxes
The impact of Currencies, Conversions and Taxes on your product prices
All FastSpring Stores have a Base Currency, which is the Store’s default currency. When you create a product, you must specify the price in at least the Base Currency. Your Store uses this currency as a foundation for Automatic Currency Conversions.
Although you cannot directly control the base currency for your Store, FastSpring Support can set that for you. The available options for your Store's default currency include:
You control which currencies are available to consumers at the Store level. If you decide to limit the currencies supported by your Store, include all of the currencies that are accepted in any of your Storefronts. This is necessary because the Store currency settings also control which currencies are available for product pricing. The currencies you select may impact the payment methods available to consumers. For example, GiroPay is only available when a consumer pays in Euros.
Currency Codes and Corresponding Countries
- AUD - Australian Dollar
- BRL - Brazilian Reais
- CAD - Canadian Dollar
- CHF - Swiss Francs
- CLP - Chilean Pesos
- CNY - Chinese Yuan
- COP - Colombian Pesos
- CZK - Czech Koruna
- DKK - Danish Kroner
- EUR - Euro
- GBP - British Pound
- HKD - Hong Kong Dollar
- INR - Indian Rupee
- JPY - Japanese Yen
- KRW - Korean Won
- MXN - Mexican Pesos
- NZD - New Zealand Dollar
- PLN - Polish Zlotys
- RUB - Russian Ruble
- SEK - Swedish Kronor
- SGD - Singapore Dollar
- USD - United States Dollar
- ZAR - South African Rand
Control Availability of Currencies
Customize which currencies your Storefront does and does not accept:
- In the FastSpring App, select the Store Settings menu. Then click Localization on the left of the page.
- Under Available Currencies, select the checkbox next to each currency you are including in your Storefront.
- Click Save at the top, right corner of the page. Allow up to ten minutes for Live Storefronts to be updated.
You can also Override Currencies and Language Settings for Storefronts based on automatic detection of the consumer’s location.
Product Pricing, VAT, and Sales Tax
When you create or edit a product, you have the option to set a custom price in each currency that is accepted by your Store.
- USD prices: the price you set should not include VAT, GST, or sales tax because FastSpring will add applicable taxes.
- Prices in non-USD currencies: enter all prices as either gross prices or net prices:
- By default, your Store uses Gross Pricing Mode, which means that FastSpring deducts applicable VAT and GST from the non-USD prices you enter.
- Upon request, FastSpring Support can switch your Store to use Net Pricing Mode. In that case, FastSpring adds applicable VAT and GST to the non-USD prices you enter here.
If the only currency enabled is USD, consumers in all locations see the price in USD. This price is shown to international consumers with the applicable VAT and GST automatically added to it. This will vary based on each consumer's location. See VAT and Sales Tax for details.
The price shown in the Storefront depends on the geographic location of the visitor, which is determined by the visitor's IP address. The country and currency selected by default are based on the visitor's location. If you set a default country for the Storefront, the prices automatically appear in the currency of the default country, provided that currency is enabled for your Storefront.
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 to EUR. Note that the conversion is performed first and any taxes are added second.
Similarly, if GBP is enabled and you have set the product's price in GBP, visitors in the UK will see the specified GBP price. If GBP is enabled, but you have not set the price in GBP, UK visitors will see a price in GBP that FastSpring has converted from USD.
Automatic Currency Conversion Rules
- If the product has a price defined in the currency used by the consumer's country, that price appears on the Storefront. If the selected currency is different from the base currency for your Store, FastSpring converts the amount paid by the consumer back to your Store's base currency before issuing your payout.
- If the product has no price defined in the consumer's currency, currency conversion occurs automatically, and the consumer sees and pays the converted price.
- If the currency to convert to (the consumer's currency) is one of the major currencies (AUD, CAD, DKK, EUR, GBP, HKD, JPY, SEK, SGD, USD, ZAR), the system receives the Oanda Exchange Rate, and then marks it 3.5% higher to adjust for currency fluctuations. Then, it converts the price defined in the base currency to the consumer’s currency using the mark-up rate.
- If the currency you are converting to is not a major one, the system marks up the Oanda Exchange Rate 5.5% higher in order to determine the conversion rate.
- The same adjustment applies if you specify the price in a non-USD currency and FastSpring converts the funds back to your Store’s base currency.
The Price Decoration feature aims to make converted or calculated prices look similar in style to the products' original or base prices. This feature is only supported in Gross Pricing Mode, which is enabled for all new Stores by default. Price Decoration takes effect when converting USD prices to a non-USD currency. For example, this occurs when you have not defined a product’s price in the consumer’s currency.
In place of potentially displaying an odd decimal portion as a result of the conversion, Price Decoration rounds up to replace the decimal portion of the Base Price.
If the calculated amount is 6.77 GBP, but the driving price is USD 9.99, the system rounds up 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. The effects of the decoration process become more pronounced when multiple quantities are purchased.
If a consumer purchases a quantity of two or more, 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 a consumer purchased a quantity of 10, the net effect of price decoration would be 2.20 GBP (0.22 * 10). The differences in these decorated prices are paid to you, the seller.