What is a multi-currency account?

An account that will let you accept, store and send funds in multiple currencies with the ability to exchange between currencies.

But there are different ways this can be achieved.

1. 1.       Multiple single currency accounts accessed through one portal.

This may give you a single interface in which you can manage multiple currencies, with separate account details for each currency.

You may accept payment in any supported currency without exchange costs.

You may make a payment in any supported currency.

You can manage foreign exchange within the one account with reduced time for settlement and costs.

You may get a single debit card that will enable purchase transactions and cash withdrawals in your chosen currency.

Spending, cash withdrawals and fund transfers can only be effected from a currency account with sufficient balance in the currency you wish to spend. Some accounts will process an automatic exchange from a designated currency if there are not sufficient funds to cover a transaction and the relevant fee in the transaction currency. But this is a forced exchange at a rate you have no control over.

Some accounts will not process a transaction if there are not sufficient funds in the currency of the transaction.

This does give the advantage of being able to manage transactions and view records from a single access point.

Can this really be called a multi-currency account though or is it just a single convenient portal in which multiple currencies can be managed?

1. 2.       Multiple single currency accounts within a multi-currency wrapper.

This may give you a single account detail in order for funds to be deposited into the account but the funds will be held in individual currency accounts.

You may accept payment in any supported currency without exchange costs.

You may make a payment in any supported currency.

You can manage foreign exchange within the one account with reduced time for settlement and costs.

You may get a single debit card that will enable purchase transactions and cash withdrawals in your chosen currency.

Again, like the first option above spending, cash withdrawals and fund transfers can only be effected from a currency account with sufficient balance in the currency you wish to spend.

This also gives the advantage of being able to manage transactions and view records from a single access point and give just one account detail for payments and deposits into the account.

Can this also be called a multi-currency account, or is it again just a single convenient portal in which multiple currencies can be managed?

1. 3.       A single account which can hold multiple currency balances.

A single account in which multiple currency balances can be held.

An account for which transactions are authorised on the net balance of the account, being the sum of all the currencies held within the account, regardless of the balance of the currency of the transaction.

This will allow single currency balances to go to a negative balance so long as the net balance will cover the transaction and any related fee.

Margins can be built into an available balance to cover any exchange movements.

This leaves the account holder to manage the currency balances at a time and rate to suit themselves with no forced conversions.

Interest can be charged on any negative currency balance.

Is this a genuine multi-currency account?