Playroll Exchange Rate Methodology and FX Fees Explained

Learn how Playroll sets exchange rates and applies an FX fee to manage currency fluctuations and payroll risk.

Playroll uses aggregated market exchange rates and applies a foreign exchange (FX) fee when billing and payment currencies differ. This article explains how rates are set, why they may differ from public spot rates, and why the FX fee is necessary for accurate, on-time international payroll.

Exchange Rate Methodology

Playroll does not rely on a single bank or official source for foreign exchange rates. Instead, we use an API that aggregates data from multiple reputable financial providers. This approach captures a rate that reflects broader market conditions rather than the pricing of one specific institution or platform.

The exchange rate is captured early in the morning on the day of invoicing. That rate is then applied consistently to all invoices generated on the same day, ensuring standardization and fairness across clients.

Because the rate is based on aggregated market data, it may differ slightly from the rate displayed on individual banking apps, currency converters, or public spot rate platforms. Publicly displayed rates often do not include operational or transaction-related costs.

This methodology is designed to provide a fair and representative market rate while maintaining consistency in invoicing.

Foreign Exchange (FX) Fee

Playroll charges a foreign exchange (FX) fee when the your billing currency differs from the currency used to pay employees. This fee covers the operational costs of currency conversion and helps manage the financial risks associated with foreign exchange volatility.

Why a Forex Fee Is Necessary

Exchange rates can fluctuate between the time payroll is calculated and the date employees are paid. Employees are paid based on the exchange rate applicable on the actual payment date and not the earlier rate from when payroll was initially calculated.

The FX fee helps buffer against exchange rate fluctuations between:

• The date the invoice is issued, and
• The date payment is processed and converted for payroll.

This structure ensures employees are paid accurately and on time, even if currency markets move between invoicing and payroll disbursement.

The fee is applied to the aggregated market rate. As a result, the final rate shown on your invoice may differ from publicly displayed spot rates, which typically exclude transaction, service, and risk management costs.