What exchange rate should be used when receipts show different amounts?

Short answer

Use the exchange rate from the transaction date as recorded in your card system, typically the posting or settlement date when the final USD amount is determined. This is the rate that appears on your card statement and should be documented consistently for accounting and audit compliance.

For Ramp card transactions in foreign currency, the USD amount shown in Ramp reflects the posted/cleared transaction after network conversion, and any FX costs are embedded in the effective rate rather than charged as a separate foreign transaction fee.

Why receipt amounts differ

Receipt amounts can differ from your accounting records for several reasons:

Currency conversion timing: The merchant processes the charge in their local currency, but your card network converts it to USD at settlement using that day's rate, which may differ from the rate on the purchase date.
Settlement date differences: The merchant may finalize the charge days after the purchase, and the exchange rate applied at settlement can differ from rates on earlier dates.
Dynamic currency conversion: Some merchants offer to charge in USD at the point of sale. If accepted, the transaction is effectively denominated in USD at the merchant-provided rate, and no separate card network conversion occurs. These merchant rates are often less favorable than network rates.
Exchange rate markups: Card networks may use wholesale or network rates that differ from mid-market rates, and issuers may add foreign transaction fees (often disclosed separately or included in pricing), which vary by card program.

Which exchange rate to use

For accounting and compliance purposes, use the transaction date exchange rate as it appears in your card system:

Transaction date: For card spend, this is typically the posting or settlement date shown on your card statement, when the final USD amount is determined and recorded.
Not necessarily the purchase date: While the receipt shows the purchase date, the accounting transaction date is when the charge posts to your account and the final functional-currency amount is known.
Settlement determines the rate: The date your card network settles the transaction is often when the exchange rate is applied, which can be several days after the purchase.

This approach aligns with accounting guidance to use the spot rate on the transaction date when the entity first recognizes the transaction in its functional currency. For card transactions, this is typically when the transaction clears and posts.

How it works on Ramp

Ramp automatically handles foreign currency conversion and documentation:

Automatic conversion: Foreign transactions are converted to USD at the exchange rate applied when the transaction posts to your Ramp account.
Rate documentation: The exchange rate used is stored with the transaction and visible in transaction details.
Receipt matching: Ramp matches receipts to transactions even when the receipt shows the foreign currency amount and your records show USD.
Accounting sync: The final posted USD amount syncs to your ERP, maintaining consistency across your financial records.
Audit trail: Both the original foreign currency amount and the converted USD amount are preserved for compliance and reconciliation.