Understand exchange rates and card payment settlement

If you pay or spend in a currency that’s different from your company’s main currency, Pleo will convert the amount using an exchange rate. This article explains when exchange rates are applied, where the rates come from, and why your card payment amount can change between authorisation and settlement.

For reconciliation and accounting, always use the settled amount and date (not the authorised amount), because settlement is the finalised transaction.

When exchange rates are applied

The final amount you see in your company’s main currency can depend on:

The payment type (card payment, invoice payment, bank transfer, or a currency conversion)
Whether your account uses multi-currency
Whether you had enough funds in the transaction currency (for multi-currency)
When the payment completes (this is mainly relevant for card payments)

Where Pleo exchange rates come from

For card transactions, Pleo uses Mastercard’s exchange rate. You can also use Mastercard’s online converter to get a reference rate.

Good to know: Rates shown in external converters are for reference. The exact rate applied can depend on transaction details and when it completes (for example, when a card payment settles).

Card payments: authorisation vs settlement

When you pay by card, the transaction can appear in two stages:

Authorised amount: An estimated amount that’s held when you make the payment
Settled amount: The final amount after the merchant completes the transaction

In Pleo exports, you may see both values, for example:

Authorised date / authorised amount / authorised currency
Settled date / settled amount / settled currency

What is “settlement timing”?

Settlement timing is the time it takes for a card payment to move from authorised to settled. This depends on the merchant (some merchants settle later than others).

Why the final amount can differ

If the transaction settles later than the time of purchase, the exchange rate used at settlement can differ from the rate at authorisation. This can make the settled amount slightly higher or lower than the authorised amount.

In other words, if your final amount changed after the purchase, it’s usually because your card payment moved from authorised to settled, and the final (settled) amount uses the exchange rate applied when the transaction completes.