Adaptive Currency

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Introduction & Highlights

What is Adaptive Currency?

Adaptive Currency allows merchants to show product prices in the customer’s local currency rather than a fixed global currency (e.g., USD or INR). This reduces friction at checkout, improves user trust, and increases the likelihood of successful payments.

Key Benefits:

• ✨ Localized Payment Experience: Show customers prices in their local currencies
• 🔓 Unlock more payment methods: Show customers more payment methods associated with their local currency
• 💱 Same Currency Refunds: Customers get refunded in the currency they paid with

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How to Enable It on the Dashboard

1. Log into your Merchant Dashboard
2. Navigate to Business → Business Settings
3. Toggle the switch to Enable Adaptive Pricing
4. You can disable it at any time
5. Changes apply only to future transactions

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Customer Flow

1. 🏁 User Begins Checkout

   • System detects the user’s country based on billing address

2. 💵 Currency Selection

   • If Adaptive Pricing is enabled and the country is supported, prices are shown in the local currency by default
   • Users can switch to global currency (USD) if preferred

3. 🔄 Conversion & Fees Adaptive Currency allows your customer to pay in their local currency using the latest exchange rates

   Fees

   • You Pay 0%
   • Your customers pay 2-4% based on the order value

   You (the business) don’t directly pay any additional fees for adaptive currency as all the fees are borne by your customer. We have a tiered fees structure which will be applied during checkout as mentioned below

   • Fees are tiered:
     • 4% for orders under $500
     • 3% for $500–$1,500
     • 2% for over $1,500

4. 💳 Payment Experience

   • User sees localized payment methods (where applicable)
   • Checkout and payment are completed in the selected currency

5. 📝 Transaction Record

   • Merchant dashboard shows the transaction in global currency (USD) only

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Supported Currencies

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Additional Details

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🔄 Refunds

Dodo Payments pays out refunds in the currency your customer pays in using the latest exchange rate. The global currency (USD) amount remains fixed and the same will be shown on your dashboard and invoices and the same is refunded. This means that your customer may get more or less than the original paid amount depending on how the exchange rate changes during refund transfer. Adaptive Currency fees are not refunded.

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Example Refund

We ignore Dodo Payment fees in this example for simplicity. Suppose:

1. You’re a US business that uses Checkout to sell a product for 100 USD and have activated Adaptive Currency
2. A customer in Canada views your Checkout page, sees the localized price of 137 CAD at an exchange rate of 1.37 CAD per 1 USD, and completes the purchase.
3. We process the payment, converting the 137 CAD to 100 USD to pay you in your settlement currency.
4. Later, when the exchange rate has changed to 1.40 CAD per 1 USD, you issue a full refund to the customer.
5. We deduct 100 USD from your account and transfer the same to your customer. He will receive 140 CAD as the refund amount.

📄 Invoice & Taxation

• Invoices show only the global currency (USD) value.
• Taxes and platform fees are calculated based on this global amount.
• For example, a $10 sale converted to 36 AED will still reflect as $10 in the Dashboard and invoices

🔢 Fee Rounding

• All amounts are rounded according to Dodo Payments internal rounding logic