The Payments Glossary | X‑Rate Pass‑Through Strategy | Finix

X‑Rate Pass‑Through Strategy

A pricing strategy where foreign exchange (FX) conversion costs are transparently passed through to the merchant (or cardholder) at the actual market rate (plus a disclosed fee) rather than being embedded or hidden in an inflated rate. For payment platforms supporting global merchants or multi-currency cards, an X-rate pass-through strategy fosters trust, simplifies reconciliation, and reduces margin scope creep.