Key takeaways
- Foreign sales can carry extra card and conversion fees.
- Conversion fees vary by processor.
- Holding foreign currency avoids converting every payout.
- Merchants of record also handle sales tax abroad.
What processors charge on foreign sales
| Processor | Currency conversion | Other notes |
|---|---|---|
| Shopify Payments (Basic, Canada) | 1.5% | 3.9% + C$0.30 on international cards |
| Stripe (Canada) | 2% | +0.8% for international cards |
| Paddle | Included in its fee | Merchant of record: handles global sales tax |
A worked example
A Canadian store sells C$50,000 a month to US customers and converts every sale to CAD.
| Processor | Monthly conversion fee |
|---|---|
| Shopify Payments (1.5%) | About C$750 |
| Stripe (2%) | About C$1,000 |
If the store keeps USD sales in USD and pays US costs from them, much of that conversion cost can be avoided.
How to keep more of each sale
- Price in your customers’ currencies where your platform supports it.
- Get paid out in those currencies into a multi-currency account.
- Pay foreign costs from foreign balances, and convert only the surplus.
- Consider a merchant of record if global sales tax is a burden.
Common mistakes
- Converting every foreign sale to CAD automatically.
- Comparing processors on domestic rates only.
Providers that can help
Compare these providers, then request a free, no-obligation quote.
Built-in payments for Shopify stores
1–1.5% Currency conversion
FAQs
Why are fees higher on international sales?
Processors often add an international card fee and a currency conversion fee on top of their domestic rate.
How can I avoid currency conversion fees on e-commerce sales?
Price in your customers’ currencies, get paid out in those currencies and hold them in a multi-currency account, converting only what you need.
What is a merchant of record?
A company, such as Paddle, that sells on your behalf and handles payments, sales tax and compliance in each country, for a higher fee.
Which processor is cheapest for foreign sales?
It depends on your sales mix. Compare international card and conversion fees, not just domestic rates.
Sources: Shopify, Stripe and Paddle published Canadian pricing.