What typically happens when parties to a payment maintain accounts in different currencies?

When parties to a payment maintain accounts in different currencies, currency exchange typically occurs as an essential step in facilitating the transaction. This process involves converting one currency into another so that the payment can be processed appropriately.

For example, if a buyer's account is in U.S. dollars and the seller's account is in euros, the payment would need to be exchanged from dollars to euros to ensure that the seller receives the correct amount in their local currency. This currency conversion is fundamental to international transactions, where different currencies are involved, and is typically managed by financial institutions through foreign exchange markets.

Other options, while relevant in certain contexts, do not reflect the primary necessity when dealing with accounts in different currencies. International tariffs relate to taxes imposed on goods and services traded across borders, which isn't directly relevant to payment processing. Payment delays could occur due to various factors, but they are not guaranteed when currency exchange is involved — many financial institutions have efficient systems to handle such transactions. Automated clearing usually refers to the process of settling payments electronically, which may happen after currency exchange but is not the core action taken due to differing currency accounts.