Daily international sales volume for retailer 2Checkout.com nearly tripled after it implemented a system from E4X that automatically converts prices into the local currency of the consumer, says Kristin Dach, 2CO chief financial officer.
Average daily volume on foreign sales increased to $116,000 from $46,000 after 2CO implemented the E4X multi-currency program in October, Dach says. “It gives us more of a global viewpoint,” she says. “Consumers like knowing they’re dealing with a company that’s sophisticated enough to identify the fact they’re in the United Kingdom or Australia and show all our product prices in their local currency.”
The system also lets the retailer know the value of the transaction based on the currency exchange rate at the time of the sale, helping 2CO avoid problems resulting from fluctuating exchange rates, Dach says. For example, exchange rates often shift between the time the consumer makes a purchase and asks for a refund. If the conversion rate results in a lower refund, a foreign consumer will file a complaint with his card issuer, resulting in a compliance chargeback to 2CO.
“They take the rest of the money back and I get charged $10,” Dach says. With the E4X system, that transaction value is stored for 6 months.
2CO prices are converted in the local currencies of Australia, Canada, Switzerland, Denmark, the UK, Hong Kong, Japan, Norway, New Zealand, and Sweden as well as the Euro. E4X updates currency values daily.
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