I generally invoice in Euros, and then accept international wire transfers fees that get deducted in transit. If the customer asks me to quote/invoice in their preferred currency that's fine. In this case, I pick the conversion rate that my bank provides me and add any conversion fees (not transfer fees) to the amount on the invoice.
Sometimes a customer just pays in a different currency without notifying me beforehand. They usually just enter "x EUR in [other currency]" into google and wire that amount. Obviously, this is not the conversion rate that the customer nor I would ever get from our banks. So now this payment, which is 10% below the net of the invoiced amount, appeared in our bank account.
How should I professionally handle the situation? I can see a few options:
- Accept the hit and just go on with life, as long as it doesn't occur too often. This makes it somewhat unfair to the customers who do the conversion on their side and pay in the correct currency, or at least ask beforehand to change the currency on the invoice.
- Have my bank reject the payment, probably incurring even more loss as the money travels the way back to the other side of the world. Then tell the customer that I can't accept his currency and he shall pay as invoiced. Sounds like a bad move in terms of customer friendlyness – of course I could pretend my bank did it automatically.
- Keep the amount but tell the customer he should make another payment of the 10%+new conversion fees. How would I go on about doing that? Issue another invoice? After all, the total amount paid by the customer will be higher than if he had paid in one batch in the first place.
I'd appreciate some wisdom on how this is commonly handled.