A cross-currency payment is funded or instructed in one currency and delivered or settled in another. A USD-funded payment that delivers PHP to a Philippine supplier is cross-currency. Conversion is part of the transaction even when the payer sees one payment.
Cross-currency is not always cross-border
A currency change can happen within one jurisdiction. A cross-border payment can remain in one currency. The terms describe different attributes.
| Providers | Currency changes? | Type |
|---|---|---|
| Same jurisdiction | Yes | Domestic cross-currency |
| Different jurisdictions | Yes | Cross-border and cross-currency |
| Different jurisdictions | No | Same-currency cross-border |
What should the payer review?
- Funding and payout currencies
- Applied rate and quote expiry
- Transfer fee and FX pricing
- Possible deductions
- Estimated Recipient amount
- Return treatment
Choose where conversion happens
Suppose a Philippine supplier invoices in PHP and the buyer holds USD. The buyer can accept a USD/PHP quote before sending, or send another supported currency and leave conversion to the receiving side. The second option can reduce the payer’s visibility over the final rate and amount credited.
Review the payment corridor and total transfer cost. The international vendor payment guide explains approval and reconciliation around the transfer.
