Effective January 1st 2023, Croatia will become a member of the Eurozone and will convert its domestic currency from the Croatian Kuna (HRK) to the Euro (EUR) at a fixed rate of 7.53450 HRK to 1 EUR.

1) How will this change affect payment requests?

Payment requests (authorizations) in HRK will be processed until December 31st, 2022 23:59 CET. Payments in HRK will be refused by card schemes from January 1, 2023 00:00 CET onwards. Adyen will block payments in HRK for Adyen Acquiring as well as Adyen Gateway to partner acquirers starting January 2nd, 2023 10:00 CET.

2) How will this change affect capture requests?

Adyen strongly advises that Capture requests for authorized HRK payments are processed before December 29th 2022 23:59 CET. On December 30th and 31st, 2022 capture requests in HRK will be paid in EUR. Mastercard and Visa will accept HRK captures until February 28th 2023, but will settle in EUR.

3) How will this change affect refund requests?

Refund requests for payments that were authorized and captured in HRK can be processed in HRK before December 29th, 2022 23:59 CET. After December 29th, 2022 and onward, Adyen will convert Visa, Mastercard and American Express HRK refund requests on behalf of merchants into separate EUR refunds using the fixed exchange rate.

Adyen will not have to convert the currency of refund requests for Diners payments, which will continue to accept HRK refunds until further notice for payments that were authorized and captured in HRK before 2023.

4) How will this change affect chargebacks on payments?

Chargebacks for payments that are authorized in HRK will be charged in EUR starting January 1st, 2023 as per local rules.

Merchants do not need to hold HRK balances on bank accounts for Chargebacks (or Refunds) on transactions that were captured in HRK, because Chargebacks (and Refunds) will be processed in EUR. Moreover, holding HRK balances is technically not possible because all HRK bank accounts will change to EUR accounts starting January 1st 2023 (by applying a fixed rate of 7.53450 HRK to 1 EUR).

5) How will this change affect balances?

Open balances merchants are holding in HRK will be converted to EUR by Adyen on January 1st, 2023. Deposit and RefundReserve balances have been converted to EUR between December 12th to 15th, 2022. This does not disrupt ongoing refunds in HRK during the last two weeks of the year 2022. Payable balances HRK will be converted to EUR with the first payout of the New Year 2023 by applying a fixed rate of 7.53450 HRK to 1 EUR.

Neither of these currency conversions require any actions from merchants and are entirely conducted by Adyen.

6) How will this change affect payouts?

The last HRK payout from Adyen will occur on Friday, December 30th, 2022. From January 1st, 2023, all payable balances HRK are converted to EUR with the first payout of the New Year 2023 by applying a fixed rate of 7.53450 HRK to 1 EUR.

7) How will this change affect pricing displays?

Merchants should be aware of the dual pricing display mandate for single products, as well as for total sums. Merchants are required to disclose both HRK and EUR pricing on their websites (and at the Merchants’ premises, if any), using the fixed exchange rate, from September 5th 2022 until December 31st, 2023 as part of Croatia’s National Euro Changeover Plan. 

For instance, this also implies a dual display of both currencies on all relevant receipts. The purpose is to help consumers get accustomed to the new currency and to offer protection from unjustified price increases or incorrect price conversion.

For implementation details, we recommend participating in the campaign organized by the Croatian Ministry of Economy and Sustainable Development in cooperation with business associations (e.g.: Croatian eCommerce Association) and seeking advice from local consultancies.