Exchange rates reflect the value of your currency compared to foreign currencies, meaning they determine how much of your currency is needed to buy a unit of a different currency.
When you choose your Payment Method, you're also selecting the currency for your payments. If this currency is different from that on your invoice, Borderless facilitates the conversion of the invoice amount into your selected currency, using the current exchange rate.
For example, if your invoice is in US dollars but you receive payment in Euros, that invoice amount must be converted into Euros using the current exchange rate. Exchange rates change every few seconds and are impacted by different factors like changes in global economic conditions, political events, and supply and demand for each currency.
It's important to keep in mind that the exchange rate can affect how much money you receive when you convert your payment into your preferred currency. A higher exchange rate means you'll receive more money, while a lower exchange rate means you'll receive less.
Therefore, if you received less money than a previous payment due to fluctuating exchange rates, it means that the exchange rate at the time of the payment was less favourable than it was during the previous payment. As a result, the currency you received was worth less in your local currency than it was during the previous payment.