Conversion Fee: how automatic charging works for cross-border operations

With the new Conversion Fee feature, charges related to cross-border operations are now automatically calculated and registered directly within the transactional flow and the ledger. The goal is to provide more transparency, predictability, and traceability for fees associated with international transactions.

Overview

The Conversion Fee automates the charging of exchange costs and taxes (such as IOF) for cross-border operations, eliminating manual calculations and ensuring that each transaction has its associated costs recorded clearly and linked to the original operation.

Benefit	How it helps
Transparency	Charges are recorded directly in the ledger
Predictability	Costs are calculated automatically, with no surprises
Traceability	Each fee remains linked to the original transaction
Reconciliation	Consistent ledger, simplifying financial closing

How does the Conversion Fee work?

The Conversion Fee is configured as a percentage and applied to the gross transaction amount.

When configured:

The fee is automatically calculated
The amount is registered in the ledger
The fee remains linked to the original transaction

Calculation formula

Conversion Fee = transaction amount × fee percentage

When both Conversion Fee and IOF are configured, the values are added together and reflected as a single charge in the ledger, under the “conversion fee” category.

Which transactions generate a Conversion Fee?

The feature applies to eligible cross-border operations, including:

Transaction type	Description
Payin	Receipts via PIX, credit card, boleto, or TED
Payout	Payments sent via PIX or TED
Returns and refunds	Reversal transactions, which also generate operational costs

💡 Returns are also included, as these transactions generate costs that must be accounted for.

How does the Conversion Fee appear in the ledger?

With the new functionality, a transaction can generate up to three ledger entries:

Entry	Description
Main transaction	e.g., PIX Payment, Credit Card Payment
Operational fee	e.g., PIX fee, card fee, boleto fee
Conversion Fee	Charge related to FX and IOF

All entries maintain reference to the original transaction, ensuring complete traceability in statements and reconciliation processes.

Impact on balance

The fee behavior varies depending on the transaction type.

Payin (receiving)

Event	Impact
Transaction is credited in the ledger	Conversion Fee is debited immediately
Available balance	Direct impact on available balance

Payout (sending)

Event	Impact
Transaction is created	System checks if there is sufficient balance to cover the fee
Payment successfully processed	Fee is deducted from available balance
Payment rejected	No amount is debited – the blocked balance is released

⚠️ Important: You must have sufficient balance to cover the fee when performing a Payout.

Practical example

Setup

Company: International Market Ltd (cross-border)
FX Fee: 2.5%
IOF: 0.38%
Transaction: Payout of R$ 10,000.00 to a supplier in Brazil

Calculation

Component	Calculation	Amount
FX Fee (2.5%)	R$ 10,000 × 2.5%	R$ 250.00
IOF (0.38%)	R$ 10,000 × 0.38%	R$ 38.00
Total Conversion Fee	Sum	R$ 288.00

Impact on the ledger

Entry	Amount
Payout sent to beneficiary	- R$ 10,000.00
Conversion Fee (including IOF)	- R$ 288.00
Available balance affected	- R$ 10,288.00

Benefits of automation

Benefit	Description
Automatic calculations	Reduces time on settlement, as all fees were already collected
Financial transparency	Ledger with all charges visible and traceable
Link to transaction	Each fee is associated with the original transaction
Simplified reconciliation	More consistent and auditable process
Greater predictability	Costs known in advance

​Overview

​How does the Conversion Fee work?

​When configured:

​Calculation formula

​Which transactions generate a Conversion Fee?

​How does the Conversion Fee appear in the ledger?

​Impact on balance

​Payin (receiving)

​Payout (sending)

​Practical example

​Setup

​Calculation

​Impact on the ledger

​Benefits of automation