What terminology describes the currency a business uses for payouts?

Settlement Currency is the correct term that describes the currency a business uses for payouts. This term refers to the specific currency in which funds are transferred from Stripe to the business after transactions are processed. It aligns with the final amount that the business receives, ensuring that all financial operations are consistent with the chosen currency for payouts.

Using settlement currency is crucial as it directly impacts revenue recognition, accounting practices, and financial reporting for the business. By distinguishing this currency, businesses can manage their cash flow and financial planning more effectively, ensuring they operate in a currency that is beneficial or convenient for their financial operations.

Other terms, while related to transactions, do not accurately capture the specific context of the currency used for payouts. Transaction currency refers to the currency in which a specific transaction occurs, while operational currency generally pertains to the currency used for general business operations, which may not necessarily align with payout structures. Exchange currency implies the process of converting one currency to another, rather than identifying the currency for payouts directly. Thus, Settlement Currency is the precise and appropriate terminology for this context.