How AfterShip Protection Coverages Are Processed for Non-USD Buyers And Merchants?

Overview

AfterShip Protection is currently only open to business entities based in the USA with default store currency configured to USD ($). It often leads merchants who deal in non-USD or buyers who buy in currencies other than USD to wonder how the claims and coverages are processed and calculated if the merchants would like to extend their customers the opportunity to insure their orders and likewise for customers to safeguard their packages with AfterShip Protection.

This tutorial will take you through the multi-currency processing protocols in the context of the claims procedure for AfterShip Protection in events of non-USD orders.

Example

Suppose the merchant’s store currency is set to (USD)



Suppose the currency the buyer is buying the insurance is in Hong Kong Dollars (HKD)

Policy generation process

Based on the aforementioned example, this is how the policy generation works.

Since all the orders and claims in the AfterShip Protection system are displayed in USD ($), the below explanation will help you understand how the conversion from one currency to another, in this case, HK$ to USD$ works to align the varying currencies to AfterShip Protection supported currency.



When integrating a store currency other than USD, we define 1 USD = ? store's currency in our system.

The specific process is as follows: Shopify converts the buyer's currency into the store currency, and then when generating the policy, we convert the store currency to USD.

Subsequently, we will use USD currency for communication within our system.

Merchant experience

On the AfterShip Protection admin, when the merchant sees the claim details, the claim submitted by the buyer will be displayed in their currency (end-customer), in the above case HKD.

Merchants can input the buyer’s refund amount in their currency and simultaneously see our system convert the refund amount (HKD) to USD to charge their store.

Claim resolution process

At the time of policy generation, we will record the amount in the buyer's currency, store currency, and USD currency. Furthermore, we will document the exchange rates at the time of policy generation: 1 USD = ? buyer's currency and 1 USD = ? store's currency. These will be utilized in the subsequent claim resolution process.

Replace with the same items

Since we only need to create an identical order within the user's store, we simply have to generate an order that contains the same items, thereby removing the necessity to consider multiple currencies.

Refund to original payment method and Refund to store credit

Here are two scenarios.

1. Customized refund amount: When customizing the refund amount, the value will be in the buyer's currency (HKD), which then needs to be converted to USD using the formula 1 USD = ? buyer's currency based on the exchange rate at the time of order, to calculate the refund amount to the buyer.

In short, AfterShip Protection would use the buyer’s currency to refund the claim amount and convert it to USD to charge the merchant.

2. Full refund amount: If the merchant refunds all the items the buyer has selected, then the total amount for the refund is calculated directly based on the recorded buyer's currency amount.

Updated on: 25/02/2024