Merchants decide how often they want to update prices, Tal said. E4X hedges the purchase at the point of sales so the merchant avoids the currency risk, Tal said.
Individual transactions are too small to be hedged so they are batched together for hedging.
E4X will also handle issues of computing any taxes and accounting issues on international sales, Tal said. E4X is funded by Delta Ventures, JPMorgan Partners and Polaris Venture Capital. LabMorgan, the JP Morgan technology center, is a partner in developing the service and technology. Oanda, a provider of currency conversion and localization tools, is working with E4X to sell the payment system to its clients. Charles Rutstein, an analyst at Forrester Research, said that the company is addressing a large market opportunity, especially in the settlement of international transactions.