---
name: localized-pricing
description: Guide for implementing localized pricing, adaptive currency, and purchasing power parity with Dodo Payments
---

# Localized Pricing, Adaptive Currency, and PPP

This skill covers three distinct mechanisms for pricing in multiple countries and currencies. Developers often confuse them. This skill disambiguates them, shows how to implement each, and explains their interactions with plan changes, proration, and tax.

## When to use this skill

- You need to set fixed prices for specific countries or currencies.
- You want to offer live foreign-exchange conversion at checkout.
- You're considering purchasing power parity discounts for emerging markets.
- You're unsure whether to use localized pricing or adaptive currency.
- You need to handle billing-country and currency resolution, fallback behavior, or plan changes with localized prices.

## Core concepts

### Three mechanisms, three purposes

| Mechanism | What it does | Who controls it | When prices change |
|---|---|---|---|
| **Localized Pricing** | Developer sets fixed prices per country/currency | You (via API) | Only when you update them |
| **Adaptive Currency** | Live FX conversion at checkout time | Dodo (live rates) | Every transaction, based on current rates |
| **PPP Discounts** | Third-party tools generate discount codes for low-income regions | ParityDeals, Evendeals, or similar | Per tool's schedule |

**Key distinction:** Localized prices are static. Adaptive currency is dynamic. PPP is a discount mechanism, not a pricing mode.

### Localized Pricing

Set fixed prices for specific countries and currencies. Once created, a localized price does not change unless you update it. It does not track exchange rates.

Use localized pricing when you want predictable, region-specific pricing that you control.

### Adaptive Currency

Enable live foreign-exchange conversion at checkout. The customer sees their local currency, and Dodo converts the base price using current rates.

Use adaptive currency when you want to offer checkout in any currency without manually setting prices for each one.

### PPP (Purchasing Power Parity)

Third-party services like ParityDeals or Evendeals generate discount codes for customers in low-income countries. These are not a native Dodo API feature. You integrate them by accepting the discount codes they generate and passing them to Dodo at checkout.

Use PPP when you want to offer affordability-based discounts without building your own detection logic.

## Product pricing mode

Every product has a `pricing_mode` that determines how prices are resolved:

- `by_country`: Dodo looks up a localized price by the customer's billing country.
- `by_currency`: Dodo looks up a localized price by the customer's billing currency.

Set the mode once per product via `client.products.update(...)`. You cannot mix modes on the same product.

```typescript
import DodoPayments from 'dodopayments';

const client = new DodoPayments({
  bearerToken: process.env.DODO_PAYMENTS_API_KEY,
  environment: 'test_mode',
});

// Set pricing mode to by_country
await client.products.update('pdt_premium_plan', {
  pricing_mode: 'by_country',
});

// Or by_currency
await client.products.update('pdt_premium_plan', {
  pricing_mode: 'by_currency',
});
```

## Localized Pricing CRUD

Localized prices are nested under products. All amounts are in the smallest currency unit (cents for USD, paise for INR).

### Create a localized price

```typescript
// ₹999.00 for customers in India
const localizedPrice = await client.products.localizedPrices.create('pdt_premium_plan', {
  currency: 'INR',
  country_code: 'IN',
  amount: 99900, // 999.00 in paise
});
```

### List localized prices for a product

```typescript
const prices = await client.products.localizedPrices.list('pdt_premium_plan');
console.log(prices);
```

### Retrieve a specific localized price

```typescript
const price = await client.products.localizedPrices.retrieve('lp_abc123', {
  product_id: 'pdt_premium_plan',
});
console.log(price.amount, price.currency, price.country_code);
```

### Update a localized price

```typescript
await client.products.localizedPrices.update('lp_abc123', {
  product_id: 'pdt_premium_plan',
  amount: 109900, // Update to ₹1099.00
});
```

### Archive a localized price

```typescript
await client.products.localizedPrices.archive('lp_abc123', {
  product_id: 'pdt_premium_plan',
});
```

Archived prices are soft-deleted. They no longer apply to new checkouts but remain in your history.

## Adaptive Currency at checkout

Enable adaptive currency by passing `billing_currency` to a checkout session. Dodo converts the base product price using live rates.

```typescript
const session = await client.checkoutSessions.create({
  product_cart: [
    {
      product_id: 'pdt_premium_plan',
      quantity: 1,
    },
  ],
  billing_currency: 'AED', // Customer sees price in AED
  return_url: 'https://example.com/return',
});

// Redirect customer to checkout
window.location.href = session.checkout_url;
```

Adaptive currency is also available on subscription creation and plan changes. Check the API reference for `billing_currency` support on the specific endpoint you're using.

## Billing country and currency resolution

Dodo resolves the customer's billing country and currency in this order:

1. Explicit `billing_address.country` or `billing_currency` passed to checkout.
2. Customer's stored address (if the customer exists in Dodo).
3. IP geolocation (if available).
4. Fallback to your product's base price and currency.

If no localized price exists for the resolved country or currency, Dodo falls back to the base price. This fallback is automatic and does not raise an error.

## Interaction with plan changes and proration

When a customer changes plans, localized prices apply to the new plan using the same billing country or currency as the original subscription.

Proration is calculated using the new plan's localized price (if one exists for the customer's country/currency).

```typescript
await client.subscriptions.changePlan('sub_abc123', {
  product_id: 'pdt_enterprise_plan',
  quantity: 1,
  proration_billing_mode: 'prorated_immediately',
});
```

The new plan's localized price is used for the prorated amount.

## Tax behavior with localized pricing

Tax is calculated on the localized price, not the base price. If you set a localized price of ₹999.00 for India, tax is applied to that amount.

Tax-inclusive pricing works the same way: the localized price is treated as the tax-inclusive total.

## Common mistakes

### Mistake 1: Assuming localized prices auto-update with exchange rates

Localized prices are fixed. If you set INR 999.00 today, it remains 999.00 until you manually update it. It does not track USD/INR rates.

If you want live FX conversion, use adaptive currency instead.

### Mistake 2: Confusing `by_country` and `by_currency`

- `by_country`: Dodo matches the customer's billing country to a localized price's `country_code`.
- `by_currency`: Dodo matches the customer's billing currency to a localized price's `currency`.

A customer in India using a USD card will match `by_currency: USD` but not `by_country: IN` (unless you also set a USD price for India).

### Mistake 3: Forgetting a fallback price

If you set `pricing_mode: by_country` but don't create a localized price for a customer's country, Dodo falls back to the base price in the base currency. This is usually not what you want.

Always create localized prices for your target markets before enabling the mode.

### Mistake 4: Mixing localized pricing and adaptive currency

You can use both on the same product, but they serve different purposes. Localized pricing is for fixed, region-specific prices. Adaptive currency is for live FX conversion.

If you set a localized price for India and also enable adaptive currency, the localized price takes precedence for customers in India.

### Mistake 5: Expecting PPP to be a native Dodo API

PPP discounts are generated by third-party services like ParityDeals or Evendeals. Dodo does not have a built-in PPP API. You integrate PPP by accepting discount codes from these services and passing them to Dodo at checkout.

```typescript
const session = await client.checkoutSessions.create({
  product_cart: [{ product_id: 'pdt_premium_plan', quantity: 1 }],
  discount_codes: ['PPP_DISCOUNT_CODE_FROM_PARITY_DEALS'],
  return_url: 'https://example.com/return',
});
```

### Mistake 6: Not handling missing localized prices in production

Always test your fallback behavior. If a customer's country or currency has no localized price, they see the base price. Decide whether that's acceptable or whether you need to block checkout for unsupported regions.

## Resources

- [Localized Pricing](https://docs.dodopayments.com/features/localized-pricing)
- [Adaptive Currency](https://docs.dodopayments.com/features/adaptive-currency)
- [Purchasing Power Parity](https://docs.dodopayments.com/features/purchasing-power-parity)
- [Checkout Sessions API](https://docs.dodopayments.com/developer-resources/checkout-session)
- [Products API](https://docs.dodopayments.com/api-reference/products/post-products)