When do currency conversions occur for a merchant settling in a different currency than that of their customer?

Currency conversions for a merchant settling in a different currency than that of their customer occur when the charge is made. This is the moment when the transaction is processed, and the merchant receives the payment in their preferred currency. During this processing, the payment platform, such as Stripe, automatically handles the conversion based on the current exchange rate. This ensures that the merchant gets the equivalent amount in their currency as agreed upon during the transaction.

The other choices may involve financial transactions but do not accurately reflect the timing of currency conversion in the context of a payment. The end of each day typically relates to reporting or processing batches of transactions rather than individual conversions. A refund may involve a different process but does not initiate a conversion based on the original charge. The initial account setup primarily focuses on establishing operational parameters, including which currencies the merchant will support, rather than specifics about conversion timing.