Currency Alignment Policy (CAP)
Overview
Rapyd’s Currency Alignment Policy (CAP) is a structured currency management framework designed to ensure full alignment between:
Transaction Currency (the currency the customer pays in)
Currency Pairing (how our platform settles funds)
Merchant Wallet Currency (how funds are reflected in your Rapyd wallet)
CAP enhances transparency, predictability, and operational efficiency in cross-border card acquiring across Visa, Mastercard, and American Express cards.
Why This Policy Exists
In cross-border transactions, multiple currencies may be involved. Without proper alignment:
Settlement may occur in one currency
Merchant balances may reflect another currency
FX conversions may occur at different stages
Reconciliation becomes more complex
The Currency Alignment Policy ensures that currency handling is structured, consistent, and transparent from the moment a payment is created.
Core Principle
Wallet Currency is aligned with the supported Scheme Settlement configuration.
This guarantees:
Settlement and wallet balances reflect the same currency
FX treatment mirrors the underlying scheme FX cost
No unintended currency mismatches
Clear and predictable reconciliation
FX, when applied, is calculated upfront at payment creation — not after settlement.
How It Works
The policy applies currency validation and FX logic during payment creation.
Scenario A: Merchant Defines Wallet Currency
If the merchant specifies a Wallet Currency:
If Transaction Currency matches Wallet Currency: No FX is applied
If they differ: Rapyd verifies whether FX is supported for that currency pair:
If supported → FX is applied transparently
If not supported → Transaction cannot proceed
This ensures only valid and supported currency combinations are processed.
Scenario B: Merchant Does Not Define Wallet Currency
If only the Transaction Currency is provided:
Rapyd checks if it is supported as a Wallet Currency
If supported: It becomes the Wallet Currency
If not supported: The merchant’s configured Home Wallet Currency is assigned
Where required, FX is applied between Transaction Currency and the assigned Wallet Currency.
Supported Currency Model
Rapyd supports two settlement models:
Like-for-Like Currencies
Transaction Currency = Settlement Currency
No FX conversion applied
FX-Supported Currencies
Transaction and Settlement currencies may differ
FX conversion is applied transparently
Support varies by acquiring region and scheme configuration.
Merchant Benefits
Under the Currency Alignment Policy, merchants benefit from:
Clear and predictable FX treatment
Alignment between scheme settlement and wallet balances
Reduced reconciliation complexity
Upfront visibility into FX application
Multi-currency wallet support
Scalable cross-border processing
FX costs applied to the merchant reflect the underlying scheme-level FX cost.
Summary
The Currency Alignment Policy ensures:
Currency consistency across the full transaction lifecycle
Transparent FX application
Operational clarity
Sustainable cross-border growth
This policy reflects Rapyd’s commitment to delivering secure, transparent, and globally scalable payment infrastructure.