Foreign Currency Processing Sample Clauses
The FOREIGN CURRENCY PROCESSING clause governs how transactions involving different currencies are handled within an agreement. It typically outlines the procedures for currency conversion, specifies which exchange rates will be used, and may address who bears the risk of currency fluctuations. For example, it might state that payments made in a foreign currency will be converted at the rate published by a particular bank on the date of transaction. This clause ensures clarity and fairness in cross-border dealings by establishing consistent rules for managing currency differences and mitigating disputes over exchange rate changes.
Foreign Currency Processing. 12.1. Multi-Currency Processing Services (MCP). Multi-currency processing (“MCP”) enables a Merchant to price its goods and services in various selected currencies (each an “Acceptance Currency”) and the Cardholder then decides to purchase the goods and services in the currency of his/her choice (e.g. Euro) (“MCP Transaction”). The Cardholder provides the card details at the point of sale and completes the Transaction in the chosen Acceptance Currency (e.g. Euro). The Transaction is authorized and submitted to the Card Brands for clearing and settlement in the chosen Acceptance Currency. However, the Merchant receives settlement of the MCP Transaction in US Dollars in the same way as it receives settlement of other Transactions under the Merchant Agreement.
Foreign Currency Processing