When do currency conversions occur if a merchant’s customer pays in Hong Kong Dollars and the merchant settles in Norwegian Kroner?

Currency conversions occur at the time the charge is made. This is because Stripe processes the transaction by converting the payment amount from the customer’s currency, in this case, Hong Kong Dollars, into the merchant’s settlement currency, Norwegian Kroner, immediately when the customer completes the payment. This ensures that the merchant receives the correct amount in their preferred currency right away, reflecting the current exchange rate at that moment.

The timing of the conversion at the moment of charge allows for accurate and transparent pricing for both the merchant and the customer, as it accounts for the prevailing exchange rate without any delay that could occur if the conversion were to take place later. Other options suggest processes that do not align with how Stripe manages currency exchanges in transactions.