You may already know that you can pay in a currency that is different than that of your Cledara account.
In other words, even if you have a GBP account, you can still pay for SaaS that is billed in, say, USD.
When you set up a card to pay in a foreign currency, you will see an option to increase the budget by 20% as a safety buffer. This is to make sure that the payment will go through despite the potential fluctuation of the exchange rate over time.
Let's take a look at an example:
Say in your GBP account, you have to pay for an app in USD, and in this case, the subscription costs $200.
As you scroll down, you will see a 20% safety buffer automatically applied. This converted amount includes a 20% markup, so that even if the conversion rate fluctuates largely, your payment will still go through.
You can uncheck the option to see the converted amount without the markup.