When an international vendor is paid in USD and the payment fails, Airbase’s FX partner will credit the entire amount in USD.
When payments made to an international vendor in their local currency fail, Airbase’s FX partner will repurchase USD at the current rate and credit the money back to Airbase. Airbase will then transfer the amount back to your account in USD. The amount in USD might be different from when you created the bill, owing to the updates in the exchange rate.
The transaction will be marked as DECLINED in Airbase and the funds will be reversed to your account. The bill will be listed on Bill Payments > Payments > Unpaid page.
For example, you made a payment of 150 CAD to a vendor using Airbase. The exchange rate at the time of bill creation was 1 USD = 1.5 CAD. Airbase will debit 100 USD from your account.
When the payment fails, the 150 CAD will be transferred to Airbase’s FX partner. However, at this point, the exchange rate was changed to 1 USD = 1.6 CAD.
The FX partner will convert 150 CAD to 93.75 USD and transfer the funds to Airbase which will be credited to your account.
A new transaction gets created called "Currency conversion loss" for an amount of 6.25 USD.