Pinkoi uses foreign exchange rates from the Bank of Taiwan. However, the rates used by Pinkoi will not fluctuate along with the rates from the bank in order to avoid the confusion that frequently changing exchange rates can cause for designers and customers.
When customers purchase items, the price will be converted to the foreign currency using the exchange rate at the time the order is placed to allow the customer to pay. When the designer ships the item, the amount in foreign currency from the customer will then be converted into NTD (New Taiwan dollars) and added to the shop’s sales statement as revenue. However, because the account closing date has not yet been reached at this time, the revenue amount may still be affected by changes in Pinkoi’s exchange rates. The revenue for the order will be finalized on the account closing date (around the 15th of the month) when revenue transfer amounts are finalized according to the exchange rate on that day.
A customer places an order on 01/03. The price for the order will be converted into foreign currency to allow the customer to pay based on Pinkoi’s exchange rates on 01/03.
When the designer ships the item on 01/18, Pinkoi will convert the foreign currency amount from the customer into NTD based on the exchange rates on 01/18 and then add this amount to the shop sales statement as revenue. However, at this time, the revenue amount may still be affected by changes in Pinkoi’s exchange rates. When Pinkoi finalizes the January revenue for the shop and the revenue transfer file on 02/15, the NTD amount shown on the sales statement for this order will be calculated using the exchange rate on 02/15. At this time, the revenue amount will be finalized and will not change again.
Furthermore, the differences in monetary amounts created by fluctuations in exchange rates (could be higher or lower than the original price the product was sold at) is considered as normal foreign exchange risk. Therefore, we are unable to guarantee that differences in monetary amounts will always be within a specified amount or will always fluctuate within a set range.