Gift cards when selling in multiple currencies
Gift card values and balances are set in the currency of your store, but your customers purchase them and redeem them in their local currency.
Gift card prices are converted by multiplying the gift card amount by the currency conversion rate. Because the fees have already been applied, no currency conversion fees are applied to purchases made with a gift card. Also, rounding rules are not applied to gift cards.
Redeeming gift cards
If your customer's local currency is different from your store's currency, then a currency conversion takes place when the gift card is redeemed at the checkout. This conversion uses the exchange rate at the time that the gift card is redeemed, and not the exchange rate that was in place when the gift card was purchased.
Gift cards and manual conversion rates
If you set manual exchange rate conversions, then the manual exchange rate is applied to the price that customers pay for multiple currency gift cards, but you're paid using the current market exchange rate.
For example, if your store currency is in USD and you set a manual exchange rate of 1.3 for USD to CAD conversions, then a 100 USD gift card costs 130 CAD for Canadian customers.
As a merchant, you're paid according to the current market exchange rate. If the current rate is 1.24, then you're paid 104.84 USD for that gift card.
When the customer applies the gift card to an order of 130 CAD, then their order payment is reduced to 0.00 CAD, and the balance of the gift card changes from 100 USD to 0.00 USD. You're not paid for this transaction because it's covered by the gift card.
If you change your manual exchange rate between the time that a gift card is purchased and the time that it's applied, then the gift card's value in the customer's currency is adjusted, but the value of the gift card in your store currency remains unchanged. This lets the value of the gift card in a customer's currency change at the same rate as your product prices. For example, if you change your USD to CAD manual exchange rate from 1.3 to 1.25, then the value of a 100 USD gift card changes from 130 CAD to 125 CAD, and the price of a 100 USD product also changes from 130 CAD to 125 CAD. Effectively, the 100 USD gift card still purchases a 100 USD product in CAD in your store.
Gift card balances
Balances on your gift cards are always in the currency of your store. So, when your customer checks their gift card balance, it is reported in the store currency.
If you’re using international pricing to set specific product prices for different countries and regions, then you shouldn't set specific prices for your gift cards. Gift card balances are always in the default currency of your store, and setting a specific gift card price may result in you losing money.
For example, your store currency is US dollars (USD) and you sell $100 gift cards in USD. A European customer, whose local currency is Euros, buys a gift card and pays for it in Euros. Later the same customer creates an order and pays for it using the gift card. At the checkout, the balance on the gift card is converted to Euros and this amount is used to pay for the order. The money that remains on the gift card after paying for the order is converted back to US dollars.