---
title: "Currency Alignment Policy (CAP)"
source_url: https://docs.rapyd.net/en/currency-alignment-policy--cap-.html
lang: en
---

# 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:

1. If Transaction Currency matches Wallet Currency: No FX is applied
2. 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:

1. 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
2. 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.