Invoicing

International Invoicing: Currency, Fees and Getting Paid

Invoicing a client in another country introduces three costs that domestic invoicing does not have, and all three are usually discovered after the money arrives short. There is the exchange rate, which moves between invoicing and payment. There are the transfer fees, which can be deducted by up to three separate banks. And there is the question of who bears each — which nobody discusses until the first payment lands smaller than expected.

By Arshad Hossain · Published 16 August 2026

The short version

Whoever invoices in a foreign currency carries the exchange rate risk. Decide that deliberately.
Specify OUR, SHA or BEN on the invoice, or intermediary banks will decide for you.
State the currency in ISO code — $ and £ are ambiguous across several countries.
Record the rate you used at invoice date; your accounts need it even if the client does not.

Whose currency?

Invoicing in your own currency means the client bears the exchange risk and the conversion cost. Invoicing in theirs means you do. There is no neutral option; someone always carries it.

Invoice in your own currency where you can. Your costs are in it, your tax is in it, and your margin should not depend on a rate you cannot control. Clients accept this more readily than people expect, particularly for services.

Invoice in the client's currency when it wins you the work, when they are much larger than you and it is effectively a condition, or when their market convention requires it. If you do, build a margin buffer into the price — a few percent — rather than discovering that a rate move ate your profit on a three-month project.

A third currency is sometimes the sensible answer. US dollars are widely used between parties who share neither currency, and both sides accept an equal, visible cost rather than one side carrying it invisibly.

Whichever you pick, state it in ISO code next to the total. "

quot; means at least five different currencies and "£" more than one. USD 4,200 is unambiguous; $4,200 is a question.

Who pays the bank charges

International transfers carry fees at up to three points: the sending bank, one or more intermediary correspondent banks, and the receiving bank. Which of you pays is a field on the payment instruction, and if you do not specify it, your client's bank chooses a default.

The codes are worth knowing because they explain almost every "the client paid but I received less" situation.

OUR means the sender pays all charges, including intermediary fees, and you receive the full invoiced amount. SHA means charges are shared — the sender pays their bank, and you absorb the intermediary and receiving fees. BEN means you pay everything, deducted from the transfer.

SHA is the common default, and it is why payments routinely arrive twenty to forty units short. That shortfall is not a short payment and should not be treated as one.

State your requirement on the invoice: "Please remit under OUR charges so the full invoiced amount is received." Then price accordingly — if a client insists on SHA, either add a handling line or accept the deduction knowingly rather than being surprised each time.

Code	Sender pays	You pay	You receive
OUR	All charges	Nothing	The full invoiced amount
SHA	Their own bank	Intermediary + receiving	Slightly less, unpredictably
BEN	Nothing	All charges	Noticeably less

Exchange rates and your own books

Even where the client bears the risk, you still need a rate for your own accounting.

Record the rate at the invoice date, since that is generally when the sale is recognized. When payment arrives at a different rate, the difference is a foreign exchange gain or loss — a real line in your accounts, not an error to be smoothed over.

Where tax applies, most systems require the tax amount in local currency regardless of the invoice currency. The UAE requires the VAT shown in AED at a Central Bank rate; EU states require the VAT in the currency of the country where it is due. Note the rate and its source on the invoice.

For long projects, consider invoicing in stages rather than one payment at the end. It reduces exposure to any single rate movement, quite apart from its cashflow benefits — see milestone and partial payments.

Getting the money to actually arrive

A few practical things reduce the friction more than anything on the invoice design.

Give complete payment details. IBAN and BIC/SWIFT for most of the world, routing and account numbers for the US, plus your full legal name and address exactly as your bank holds them. A mismatch between the name on the invoice and the name on the account causes returns and delays, and looks like a fraud flag.

Ask the client to send the invoice number as the payment reference. Unreferenced international payments are the hardest of all to reconcile.

Consider a multi-currency account or a specialist transfer service if you invoice abroad regularly. Receiving in local currency and converting on your own terms is usually meaningfully cheaper than a correspondent bank chain.

Finally, be aware that invoice payment fraud disproportionately targets international transfers, where an unusual account is less obviously wrong. Confirm any change of bank details by phone using a number you already had — never one supplied in the email requesting the change.

International invoicing questions, answered

What currency should I invoice in?

Your own, where you can. Your costs and taxes are in it, so your margin should not depend on a rate you cannot control. Invoice in the client's currency only when it wins the work, and build a buffer into the price when you do.

Who pays international bank transfer fees?

Whoever the payment instruction specifies. OUR means the sender pays everything and you receive the full amount; SHA splits them and is the common default; BEN means you pay all of them. State your requirement on the invoice.

Why did my international client pay less than the invoice?

Almost always bank charges deducted in transit under SHA terms, or a withholding tax deduction in the client's country. Check the shortfall against typical intermediary fees and applicable withholding rates before treating it as a short payment.

What are OUR, SHA and BEN on a payment?

Charge codes on an international transfer. OUR: the sender pays all fees. SHA: shared, so you absorb the intermediary and receiving fees. BEN: you pay everything. SHA is the usual default and explains most unexpectedly short payments.

What exchange rate should I use on an invoice?

The rate at the invoice date, recorded with its source, since that is generally when the sale is recognized. Where tax applies, many jurisdictions specify which rate must be used for the tax amount, so check rather than assuming.

Do I charge VAT or sales tax to an overseas client?

It depends on where the supply is treated as taking place and on your customer's status. B2B services across borders often shift the obligation to the customer under a reverse charge. B2C sales frequently create a registration obligation in the customer's country.

Should I put my currency as a symbol or a code?

ISO code, always — USD, GBP, AUD, CAD. The dollar sign is used by at least five currencies and the pound sign by more than one, so a symbol alone leaves genuine ambiguity about what you are actually asking for.

What details do I need for an international payment?

IBAN and BIC/SWIFT for most of the world, or routing and account numbers for the US, plus your legal name and address exactly as your bank holds them. A name mismatch causes returns, delays and sometimes a fraud flag.

How do I avoid losing money on exchange rates?

Invoice in your own currency where possible, invoice in stages on long projects to spread rate exposure, and consider a multi-currency account so you can convert on your own timing rather than at whatever rate the transfer applies.

What is withholding tax on an international invoice?

Tax the client's country requires them to deduct from your payment and remit locally. You invoice the full amount and receive the balance. Ask for the withholding certificate — it usually offsets your own tax liability under a double taxation treaty.

Do I need to state my tax number on an international invoice?

Where you have one, yes, and for EU cross-border B2B supplies both parties' VAT numbers are required. It also helps the client's finance team establish the correct tax treatment, which reduces the chance of the invoice being queried.

How long do international payments take?

Typically two to five working days through the correspondent banking network, longer where currency controls or compliance checks apply. Build that into your payment terms rather than treating day-one silence after the due date as a problem.

Frequently Asked Questions

Should I use PayPal or a bank transfer for international invoices?

Compare the true cost, which is the fee plus the exchange margin rather than the headline fee alone. Payment platforms are convenient and often apply a spread well above the mid-market rate. Specialist transfer services usually beat both on larger amounts.

Can I invoice a foreign client in their local language?

Yes, and a dual-language invoice is common in some markets. Ensure the figures, currency code and tax treatment are unambiguous in both versions, and state which version governs if there is any discrepancy.

What is an invoice payment fraud risk on international transfers?

Fraudsters intercept or spoof invoice emails and substitute their own bank details, which is harder to spot on an international payment where an unfamiliar account looks normal. Confirm any change of details by phone on a number you already held.

Create a multi-currency invoice

Free, no sign-up, no watermarks. Your data stays in your browser.

Create an Invoice Free