Shopify Store Currency Dilemma - CAD vs. USD Billing

[Clauvancity]

Hello everyone, my Shopify store is based in Canada, but all billing and charges are in US dollars. Would it be better to set my store in US dollars instead of Canadian dollars, and how should I handle the accounting in that case? Your insights are greatly appreciated.

So I just found out that all this time for the last 3 years, Shopify has been charging me in US dollars regardless that I set my store to be billed in Canadian dollars, I complain to Shopify and this is their answer: I have received a response from the Billing team, and they have mentioned that they will not issue a refund for a couple of reasons. Firstly, it does not align with the criteria specified in our refund and credit policy. Secondly, local billing for merchants in Canada was only made available in August 2022, which is less than 3 years ago. They have informed me that I will be billed in CAD going forward.

Can you imagine the sheer lack of accountability from Shopify?😳

[DaisyVo]

Hi @Clauvancity 

I totally see where you’re coming from, and I understand how frustrating this situation must be—especially after realizing you’ve been billed in USD despite choosing CAD. Let’s break this down so you can decide whether switching to USD is the right move for your store and how to handle your accounting effectively.

Understanding the Situation

Before August 2022, Shopify didn’t offer local billing in CAD for Canadian merchants. That means, for almost three years, Shopify had no option but to charge you in USD. Now that CAD billing is available, they’ve switched you over—but unfortunately, they aren’t issuing refunds for past charges because it doesn’t fit their refund policies.

Should You Set Your Store Currency to USD?

It depends on your business needs:

• If your customers are mostly in Canada → Keep your store currency in CAD. This avoids unnecessary currency conversion fees for your buyers and makes pricing more predictable. Now that Shopify bills you in CAD, this setup makes even more sense.
• If your customers are mainly from the U.S. or international markets → Consider switching to USD to prevent conversion issues for your customers. However, keep in mind that Shopify Payments will still deposit funds in CAD if that’s your bank currency, meaning you might still face conversion fees when withdrawing money.

Accounting Considerations

If you decide to continue in CAD:

• Now that Shopify bills you in CAD, your books will be easier to manage with fewer currency conversion adjustments.
• You can reconcile Shopify fees directly in CAD with your accounting software (e.g., QuickBooks, Xero).

If you switch to USD:

• You’ll need to account for foreign exchange fluctuations when converting revenue back into CAD.
• Your financial statements should track USD revenue separately to avoid misreporting taxable income.
• If you’re using accounting software, set up multi-currency tracking to handle USD expenses and CAD revenue properly.

Final Thoughts

Since Shopify now supports CAD billing, keeping your store in CAD is probably the easiest and most cost-effective option unless you primarily sell to U.S. customers. While it’s frustrating that Shopify didn’t offer CAD billing sooner (and isn’t refunding past differences), at least you won’t run into this issue moving forward.

If you need any other assistance, feel free to ask, and I will try my best to support you.
Best regards,
Daisy.

[Clauvancity]

Hi Daisy,

Thank you so much for the great explanation! I clearly see the difference
now. I think it's easier and more convenient to keep it in CAD.

Thanks a lot for taking the time to answer me!

Claudia