Skip to content
Modulr glossary

Multi-Currency Virtual Card

Virtual credit cards (VCCs) typically exist in a single currency. When transactions occur in another currency, the conversion (FX) usually happens through another mechanism allowing payments to be processed in that single currency. A multi-currency virtual card is a VCC that allows businesses to transact in multiple currencies without incurring traditional foreign exchange conversion fees. It does this by linking – and subsequently drawing from – multiple EMI accounts in a range of currencies, rather than a single account in one currency. Each currency balance is separate, and the card automatically draws from the matching currency balance, if available. If there's insufficient balance in a currency pot, then FX still occurs from your primary currency or whichever currency is available in the account.

Applications

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

Banking and fintech:

Helps issuers and payment providers comply with Strong Customer Authentication (SCA) requirements.

Advantages

  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
  • Fraud prevention: Helps reduce chargebacks related to fraud.

Challenges

  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment
  • Implementation complexity: Requires integration with card schemes and issuer systems.

Sign up to our newsletter for our latest news and insights