What term describes the currency used for payouts in Mexico?

The term that describes the currency used for payouts in Mexico is known as settlement currency. Settlement currency refers to the currency in which the final amount of a transaction is determined and paid out after accounting for any conversions or exchange rates from the original currency involved. In the context of Stripe’s payment processing, when funds are released to vendors or service providers in Mexico, they are settled in the local currency, which is the Mexican Peso (MXN).

Settlement currency is critical during the payout process because it ensures that the recipients receive their funds in the appropriate local form of currency, which aligns with their operational needs and local regulations. Understanding this term is essential for developers working with international transactions, as it influences how payments are processed, documented, and reported.

Other terms such as presentment currency and reference currency may be relevant in different contexts, but they do not specifically denote the currency used for payouts. Presentment currency relates to the currency in which the transaction is presented for payment, while reference currency generally refers to a secondary currency used for comparison or conversion but not for the actual payout. Exchange currency usually pertains to currencies being traded or converted but is not specific to the payout mechanism.