Manage currency conversions

Overview

In the Tipalti Hub, you can fund all your international subsidiaries in one place. This feature allows you to:

• Save the costs associated with multiple wire/ ACH
• Manage all conversions and intercompany balances in one place
• Perform seamless FX (foreign exchange) conversions
• Save time and effort

Currency conversions can be funded by ACH debit transactions, except for PayPal. Tipalti Hub factors FX trades into fund calculations and incorporates them into the ACH debit logic, while updating you with all relevant details in the Convert currency dialog. In addition, activating Auto Top Up will ensure that you have available funds without having to wait for the holding period, reducing payment times even further.

Submit a currency conversion request

Required user role: Finance manager 
Required permission: Convert funds

To initiate a currency conversion request:

1. In any tab under Payments, click Convert currency to open the Convert currency dialog.
   
2. In the first step, select the Source account from which the funds will be debited. If you have multiple accounts and entities, select the account that you want to use from the dropdown menu.
3. Then, enter the Amount that you want to convert.
4. Select the Destination account to which the funds will be transferred.
5. The Converted amount displays along with the used conversion rate.
   
6. If you want to add another conversion, click the + button at the end of the row and complete the required fields. You can perform multiple conversions in the same process.
7. In the second step, review the currency conversion and rates, and click Confirm.
   
8. Once confirmed, you will see a summary of your conversions. Click Close or View Conversions.
   

If you don't have sufficient funds in your account for the conversion, you can still confirm it, and the transaction will be initiated as soon as you fund the account. In this case, the rate can't be locked, and it becomes an estimate. You will be requested to fund the transaction with a 2% buffer to allow for rate fluctuations.

If your USD account still won't have enough after the conversion, you can fund it instantly by card using the Fund with Card option shown during the conversion flow.

Currency conversion limitations

There are some limitations when entering the conversion amount.
The minimum conversion amount must be equivalent to 100 USD.
The maximum amount must be within the lower limit of the two currencies.

Funds can be converted from Sunday 6:00 p.m. (PT) - Friday 2:00 p.m. (PT). If you attempt to convert currencies outside of those hours, you'll see a notification.

Track currency conversions

Once you've submitted a conversion request, the details display in the Tipalti Hub and in reports.

1. The Currency conversions subtab lists all existing and previous FX transactions.
2. Notification: You receive an email notifying you that a conversion request was submitted in Tipalti.
3. You can also see finalized conversions in the Account statement subtab.
4. Reports: You can view the debited or credited FX transactions in the Account statement and Reconciliation reports.
5. The Funds overview subtab also shows when funds are required in specific currencies, and includes buttons to Convert currency.

Cancel currency conversions

If the FX trade is in Pending status and it has not yet been processed, you can cancel the transaction if needed.

1. Go to Payments > Currency conversions.
2. Find the transaction with Pending status.
3. At the end of the row, click Cancel. Once canceled, the status of the transaction changes to Canceled.

For payers in the UK, EU, and Canada, currency conversions are not currently supported in the Tipalti Hub, but you can convert currencies by submitting a manual request:

• Make sure you have different currency accounts. To open one, contact Tipalti Support. You’ll be able to use currency from one virtual account (e.g., GBP) to fund another virtual account (e.g., EUR).
• Send an email to mfx@tipalti.com with the funds required in each currency account. The email must include the amount and currency you wish to convert from the funding virtual account (e.g., GBP).
• The instruction should be in the following format: 
  "Please convert Currency Amount from this virtual account (Account number) 
  to this virtual account (Account number)."
• We’ll do the rest.

The email should include the following details:

• Source: Payer name, Payer entity virtual account name, Amount and currency
• Destination: Payer name, Payer entity virtual account name