Convert the currency of a refund

Limited availability
Currency conversion in currently in pilot phase. Some of the processes and documentation may change as the feature evolves. If you are interested in piloting currency conversion or have any feedback, reach out to your Adyen contact.

When refunding a payment with a currency conversion, you can exchange currencies once again. This way, the customer receives the refund in the currency with which they originally paid (the processing currency).

For example, your user sold goods to a customer who paid in PLN. Your user received CZK 1000.00 and the customer paid PLN 201.74. Here, you debited the customer in PLN, and credited your user in CZK. To refund this payment, you must debit your user in CZK, and credit the customer in PLN. When converting the currency of this refund, Adyen charges the prevailing exchange rate in addition to a conversion markup.

Remainder

Due to Adyen's markup and the constantly fluctuating exchange rates, the refund amount in the settlement currency, when re-converted to the processing currency, may no longer match the amount the customer originally paid. For example, at the time of refund, CZK 1000.00 may no longer be equal to PLN 201.74. This mismatch results in a leftover amount after the conversion, called the remainder. When a refund occurs on the same day as the payment, the remainder is usually negative.

In your refund request, you can define how you want book the remainder amount by adding a split item with type Remainder. You can book this amount either to the customer, your user, or your own marketplace. If you do not specify how to handle the remainder in your request, it is booked to your liable balance account.

Next steps

Choose whether to book the remainder to the customer, your user, or your marketplace.