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Part of the guideOne account, every currency: a guide for cross-border businesses
The short answer
To keep more of each international payment, invoice in the client's currency, give them local account details in that currency so they pay you domestically, and hold the money until you choose to convert at a known total cost. Most of the loss on cross-border payments comes from two places: deductions on SWIFT transfers and conversion margins applied automatically on arrival. Removing both can save a few per cent of every invoice.
A UK agency, consultancy or software firm with clients in Europe and the US can lose a few per cent of its overseas revenue without noticing: a little deducted in transit, a little more in the exchange rate. This article sets out the invoicing habits that prevent that. It builds on our guide to multi-currency business accounts, which explains the accounts and payment systems involved.
Where the money leaks
Between the client's bank and your profit and loss account, an international payment can lose value at four points:
- The client's bank converts at its own rate, if you invoice in your currency and the client pays from theirs. You may not see the cost, but the client does, and it makes you more expensive to buy from.
- Correspondent banks deduct fees on a SWIFT transfer, unless the client pays all charges. The invoice arrives short.
- Your bank converts on arrival, often automatically and at a margin, if the account cannot hold the currency.
- Admin time spent chasing short payments and reconciling odd amounts.
None of these looks large on a single invoice. Repeated across every invoice, every month, they add up to a real share of margin, as the example later in this article shows.
The UK Financial Conduct Authority's 2025 review of international payment pricing found that intermediary fees were often not shown upfront and that some firms described payments as "zero cost" while applying an exchange-rate markup. Assume the cost exists until you have measured it; our article on hidden FX margins shows how.
Which currency to invoice in
| Invoice in | For the client | For you | Works best when |
|---|---|---|---|
| Your currency (e.g. GBP) | They carry the exchange risk and their bank's conversion cost | Certain amount, but you may lose deals or be paid late | Clients are large and used to paying in pounds |
| Client's currency (e.g. EUR, USD) | A normal domestic invoice | You carry the exchange risk until you convert | You hold local details and can choose when to convert |
| A third currency (often USD) | Common in some industries | Two conversions may be involved | The industry prices in dollars |
Invoicing in the client's currency usually wins business and speeds up payment, because the invoice looks like any domestic supplier's. The exchange risk it creates can be managed: hold the currency for costs in the same currency, convert the surplus at a target rate, and fix large known receipts with a forward. See hedging currency risk for small businesses for the tools.
What to put on the invoice
- Local details for the client's country. A euro IBAN for euro-area clients; a US routing and account number for American clients. For dollars, label the ACH and wire routing numbers separately if they differ.
- The exact account name. Euro-area banks now check the payee name against the IBAN before sending, and UK banks do the same for sterling. A mismatch triggers a warning that can delay payment.
- The currency and amount, stated once and clearly. Avoid showing a converted amount in brackets, which can confuse what is owed.
- A reference to quote. Your invoice number, so the payment can be matched automatically.
- A note on charges, if SWIFT is unavoidable. Ask the payer to select OUR so that the full amount arrives.
Payment terms matter too. For larger projects, a deposit in the client's currency at the start reduces both credit risk and the time you are exposed to rate moves.
Card payments and online payment platforms are convenient for small sums, but they usually charge a processing fee and often convert at their own rate before paying you out. For regular business-to-business invoices, a bank transfer to local details is normally the cheaper option for both sides.
Worked example: a year of invoices
A UK consultancy invoices one euro-area client €15,000 a month and one US client $20,000 a month. Assume mid-market rates of €1.15 and $1.30 per £1. The fees and margins below are illustrative.
| Per monthly invoice | Euro client | US client |
|---|---|---|
| Value at mid-market | £13,043.48 | £15,384.62 |
| Paid by SWIFT, €25 / $40 deducted, bank converts at 2% margin | £12,761.30 | £15,046.77 |
| Paid to local details, converted later at 0.5% total cost | £12,978.26 | £15,307.69 |
| Monthly cost, SWIFT route | £282.17 | £337.85 |
| Monthly cost, local route | £65.22 | £76.92 |
Over twelve months, the SWIFT route costs £7,440.24 against mid-market and the local route £1,705.69. The difference, £5,734.56, comes straight off profit for doing nothing differently except where the money is sent and when it is converted. The local route also arrives in full, so there are no short payments to chase.
Payments to local details also tend to arrive faster. Swift reports that about 43% of payments on its network reach the end customer's account within an hour, while euro instant payments arrive within 10 seconds and US ACH payments usually by the next business day.
When to convert
Getting paid in full is half the job. The other half is deciding when the money becomes pounds. A simple routine keeps that decision deliberate rather than automatic:
- Work out what you spend in each currency each month: software, contractors, travel, suppliers. Keep that amount, plus a buffer, in the currency.
- Convert the surplus in planned amounts, not every payment as it lands. Fewer, larger conversions are easier to price and to book.
- Before each conversion, check the rate and fee against the mid-market rate at that moment, and compare with a second provider now and then.
- Use a target rate for amounts that are not needed urgently, so you are not forced to convert on a bad day.
- Record the rate and fee for every conversion, so month-end revaluation and realised gains are easy to calculate.
Our article on foreign currency accounting explains how those records feed the accounts, including the gain or loss between invoice date and payment date.
Where Pryme fits
Pryme accounts hold euro, dollar, sterling and Naira balances, with local details for each currency, and money stays in the currency it was paid in. A Pryme account can be opened from any country, so a freelancer or small firm can apply wherever it is based. Check in the app which local details and payment types your business account shows before you put them on an invoice. Pryme also offers Invoicing. When you convert, Swap shows the rate before you confirm and the fee on its own line, so you can compare the total cost as described above.
Outside Nigeria, Pryme's services are provided through regulated partners. For the full picture, including protection and accounting, see the multi-currency business account guide.
Questions people ask
Should I invoice international clients in my currency or theirs?
Invoicing in theirs usually makes you easier to buy from and gets you paid sooner, because the invoice looks domestic. You take on the exchange risk until you convert, which you can manage by holding the currency and converting at a known cost. Invoicing in your own currency suits clients who are used to it.
How do I avoid SWIFT fees when getting paid from abroad?
Give clients local account details in their currency, so the payment travels on their domestic system rather than SWIFT. If SWIFT cannot be avoided, ask the payer to choose OUR charges so the full amount arrives.
What is the cheapest way to receive international payments?
Usually local account details in the payer's currency, combined with holding the funds and converting only when you choose, at a total cost you have checked against the mid-market rate. Automatic conversion on arrival is often the most expensive step.
How do I charge an overseas client in euros as a UK business?
Raise the invoice in euros, show a euro IBAN in your business's name and the exact account name, and add your invoice number as the payment reference. Book the invoice in pounds at the rate on the day, as your accountant advises.
Do I need a separate bank account for each currency I invoice in?
No. A multi-currency account can hold several currencies with local details for each, on one statement. What matters is that each currency can be received locally and held without automatic conversion.
Sources
- FCA: International payment pricing transparency, good and poor practice (May 2025) · accessed Oct 2026
- Swift: Cross-border payment processing speed stretches further ahead of G20 target · accessed Oct 2026
- European Central Bank: Instant Payments Regulation · accessed Oct 2026
- UK Finance: Confirmation of Payee · accessed Oct 2026
- Nacha: Same Day ACH and business-to-business payments propel ACH Network volume growth in 2025 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.