How to Receive International Payments Without Losing 5% to Fees

On this page 9 sections

1. Where the Money Goes: The Hidden Cost Layers in an International Payment
2. Receiving an International Wire: SWIFT Details, Incoming Fees, and Intermediary Deductions
3. Accepting Foreign Cards on Invoices: Cross-Border Assessments and Approval Rates
4. FX Platforms and Local Receiving Accounts: Getting Paid Like a Domestic Business
5. PayPal and Marketplace Wallets: Convenience vs. Currency Conversion Markups
6. Invoice in USD or the Client's Currency? Who Should Carry the FX Risk
7. Cost Comparison by Invoice Size: $500, $5,000, and $50,000 Payments
8. Paperwork and Compliance: Bank Questions, Sanctions Checks, and Recordkeeping
9. Next Steps: How to Receive International Payments for Less

Key takeaways

• An international payment can lose money at four layers: incoming wire fees, intermediary deductions, FX spreads and card cross-border charges.
• Fixed wire fees hurt small invoices most, while percentage-based costs such as card fees and FX markups hurt large invoices most.
• Invoicing in USD moves currency risk to your client, but invoicing in their currency can win deals if you control the conversion.
• Keep invoices, contracts and conversion records for every foreign payment. Banks may ask questions, and your accountant will need them.

If you have clients in London, Toronto or Singapore, you have probably noticed that a $5,000 invoice rarely arrives as $5,000. This guide explains how to receive international payments without letting each layer of cost take its share. It covers wire fees, intermediary bank deductions, foreign exchange (FX) markups and cross-border card charges. It also shows which receiving method usually keeps the most money at different invoice sizes.

The "5%" in the headline is not a statistic. It illustrates what can happen when several small charges stack on one payment. The worked examples later in this article show how that happens and how to avoid it.

Where the Money Goes: The Hidden Cost Layers in an International Payment

When an overseas client pays a U.S. business, the cost rarely appears as a single line item. It is spread across several parties:

• Your bank's incoming fee. Many U.S. banks charge a flat fee to receive an international wire. You will find it on your account's fee schedule.
• Intermediary (correspondent) bank deductions. If the sending bank has no direct relationship with your bank, the payment passes through one or more correspondent banks. Each one may deduct a fee from the amount in transit.
• The FX spread. Whoever converts the currency usually applies a rate less favorable than the mid-market rate. That could be your bank, the client's bank, a platform or a wallet. The difference is a fee, even when nobody calls it one.
• Card cross-border charges. When a foreign-issued card pays a U.S. merchant, card networks typically add cross-border assessments. International interchange also usually differs from domestic interchange.
• Indirect costs. These include declined cards, short payments you have to chase, and international disputes, which take longer to resolve.

Some of these costs are fixed amounts and some are percentages. That difference decides which method is cheapest for a given invoice.

Receiving an International Wire: SWIFT Details, Incoming Fees, and Intermediary Deductions

Wires remain the default for B2B and wholesale buyers, especially for large purchase orders and deposits.

What Your Client Needs to Send a SWIFT Wire

Ask your bank for its exact incoming international wire instructions before you invoice. They usually include:

1. Your legal business name and address as the beneficiary, matching the account exactly
2. Your account number
3. Your bank's SWIFT/BIC code, which may differ from its domestic routing number
4. Your bank's name and address
5. Intermediary bank details, if your bank requires them for certain currencies

U.S. accounts do not use IBANs. If a client's accounts payable system insists on one, send your SWIFT code and account number with a short note explaining that U.S. banks don't use IBANs. That note prevents a lot of back-and-forth.

Incoming International Wire Fees

Your bank's incoming international wire fee is usually a flat amount per wire. Some business accounts reduce or waive it, so ask about it if you receive foreign wires regularly. Because the fee is flat, it barely matters on a $50,000 payment and matters a great deal on a $500 one.

Intermediary Bank Fees and SWIFT Charge Codes

Intermediary bank fees cause the most frustration because they are unpredictable. A client sends $5,000, and your account shows less, with no explanation on your statement.

SWIFT payments carry a charge instruction, often shown as:

• OUR: The sender pays all charges.
• SHA: Charges are shared. The sender pays its own bank, and you absorb the rest.
• BEN: You, the beneficiary, pay all charges.

Ask clients to send with "OUR" and state that requirement on your invoice. Even then, some correspondent banks may still deduct fees. Build that possibility into your terms and decide in advance how you will handle small shortfalls. Our guide to handling short-paid invoices and wholesale deductions covers how to raise a shortfall without damaging the relationship.

SWIFT payment fees can also include a conversion. If your client sends euros and your bank converts them to dollars, you pay your bank's FX spread on top of the fixed fees.

Accepting Foreign Cards on Invoices: Cross-Border Assessments and Approval Rates

Cards are often the easiest way for agencies, consultants and digital product sellers to collect from overseas clients. The client pays through a link or gives card details over the phone, and funds settle through your normal merchant account.

What Foreign Cards Cost

When the card issuer is outside the U.S., expect costs above what you pay for domestic cards:

• Cross-border assessments charged by the card networks
• International interchange, which is typically set differently from domestic rates
• Currency-related charges if the transaction is processed in a currency other than USD

On an interchange-plus statement, these appear as separate lines, so you can see exactly what foreign cards cost you. On flat-rate pricing they may be blended in or billed as an add-on. Our comparison of interchange-plus vs. flat-rate pricing explains how to read each model.

Approval Rates and Fraud Controls

Foreign issuers sometimes decline card-not-present payments to U.S. merchants, especially large or unusual amounts. A few practices help:

• Use 3-D Secure where it is supported. Many issuers expect cardholder authentication, and it can shift liability for certain fraud disputes. MannyPay offers 3-D Secure authentication for online payments.
• Tell the client to expect a foreign charge so they can authorize it with their bank.
• For retainers and subscriptions, store cards securely and consider network tokenization for fewer failed renewals.

For keyed or phone payments, a virtual terminal for card-not-present payments lets you take cards without hardware. Foreign cards still carry international dispute rights, so keep signed scopes and delivery records. Our guide to winning international chargebacks explains what evidence holds up.

FX Platforms and Local Receiving Accounts: Getting Paid Like a Domestic Business

Some FX and multi-currency platforms issue local receiving account details, such as euro or British pound account details. Your client pays with a domestic bank transfer in their own country, which avoids SWIFT intermediaries entirely.

This approach usually offers:

• No intermediary deductions, because the payment never crosses borders as a wire
• An FX markup that is often narrower than a traditional bank's, though it varies by provider
• The option to hold foreign currency and convert when the rate suits you

When you evaluate a platform, ask:

1. What markup is applied over the mid-market rate, and is it shown before you convert?
2. Are there fees to receive, hold or withdraw funds?
3. Where is the account held, and who is the regulated entity?
4. How long do withdrawals to your U.S. bank take?

In some regions, clients prefer local bank payment methods to cards. See our overview of local payment methods like iDEAL and Pix by country.

PayPal and Marketplace Wallets: Convenience vs. Currency Conversion Markups

PayPal and freelance marketplace wallets are easy and familiar for clients, which matters when you are trying to close a small project quickly. The tradeoff is cost layering.

Wallets typically charge a transaction fee, which may be higher for international senders. They also apply their own currency conversion rate when money changes currency, and that rate includes a markup. Withdrawing to your U.S. bank may add another step. These terms change, so check each provider's published fee page for current pricing.

Wallets can work for occasional small payments from individuals. For recurring agency retainers or wholesale accounts, compare the all-in cost against a merchant account or an FX platform.

Invoice in USD or the Client's Currency? Who Should Carry the FX Risk

When you invoice in USD:

• You know exactly what you are owed.
• The client's bank or card issuer handles the conversion, and the client absorbs the FX markup and any foreign transaction fees.
• Some clients see this as friction, especially European buyers comparing you with local vendors.

When you invoice international clients in foreign currency:

• Your quote looks local and is easier to approve.
• You carry the exchange-rate risk between invoice date and payment date, which matters on Net 30 payment terms.
• You control where conversion happens, so you can choose a cheaper route.

A practical middle ground for agencies and B2B sellers:

• Quote in the client's currency for competitive deals, but build a modest FX buffer into your price.
• Shorten payment terms or take deposits on large foreign-currency invoices.
• Add a clause stating that payment must arrive in full and that the payer bears its own bank and intermediary charges.

Cost Comparison by Invoice Size: $500, $5,000, and $50,000 Payments

The figures below are illustrative assumptions only. They do not reflect any bank's, processor's or platform's actual pricing. Replace them with your own quotes.

Illustrative assumptions:

• Wire in USD: $15 incoming fee plus $20 intermediary deduction ($35 fixed)
• Wire in foreign currency converted by your bank: the same $35, plus a 2% FX spread
• Foreign card via payment link: 3.5% all-in, including cross-border charges
• FX platform with local receiving details: 0.6% conversion markup, no fixed fee
• Wallet: 4.5% combined transaction fee and conversion markup

What the pattern shows:

• Small invoices suffer most from fixed wire fees. Cards or local transfers usually keep more.
• Mid-size invoices are where conversion choices matter most. A bank conversion can cost more than the wire fees themselves.
• Large invoices favor USD wires or low-markup FX routes. Percentage-based methods get expensive quickly.

Cost isn't everything. For a small agency, a card payment that arrives today may be worth more than a cheaper wire that arrives short a week later.

Paperwork and Compliance: Bank Questions, Sanctions Checks, and Recordkeeping

International payments get more scrutiny than domestic ones. Your bank or processor may ask about large or unusual incoming payments. Expect questions about the payment's purpose and your relationship with the payer, along with requests for supporting invoices or contracts.

Keep this file for each foreign client:

• Signed contract or statement of work
• Invoices showing currency, amount and payment terms
• Proof of delivery, such as project files, shipping records or license key logs
• Records of the exchange rate applied and the dollar amount received

Banks and processors screen payments against U.S. sanctions programs. If a client is located in or connected to a sanctioned country or party, the payment may be blocked or held. Screen new clients before you start work, not after you invoice.

If you begin selling significantly more abroad, tell your processor first. Our guide on when to tell your payment processor about business changes explains why. Foreign income, foreign-currency gains and losses, and any accounts held outside the U.S. can carry tax and reporting requirements. For a state-level example of how tax rules shape invoicing, see our Seattle billing guide to Washington's sales tax on services. This is general information, not tax or legal advice, so confirm your obligations with a qualified accountant or attorney.

Next Steps: How to Receive International Payments for Less

1. Pull your last few foreign payments and compare what each client sent with what actually arrived.
2. Ask your bank for its incoming international wire fee and its FX markup.
3. Add "OUR" charge instructions and a full-payment clause to your invoices.
4. Match the receiving method to invoice size. Use cards or local transfers for small invoices and USD wires or low-markup FX routes for large ones.
5. Review your card statement for cross-border line items.

MannyPay supports international payment processing, including multi-currency acceptance, cross-border acquiring paths, and a review of USD or local-currency settlement options. It also provides online payment gateways, including Authorize.net and NMI, with integrations for tools such as QuickBooks and Salesforce. Professional services firms can see options on our professional services payments page. To review your current costs, request a free quote, and a MannyPay specialist will respond within one business day.

ME

About the author

MannyPay Editorial Team

Beyond the Swipe's editorial desk researches the publication's guides and news and cites its sources in every article. Articles reviewed by a named MannyPay editor carry that editor's byline.

This article is for general educational purposes and is not legal, tax or financial advice. Card network rules and state laws change; confirm current requirements for your business.