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As your business grows, so does your network. Sooner or later, an invoice will land in your inbox billed in US Dollars, British Pounds, Swiss Francs, or Japanese Yen rather than Euros.
While working with international suppliers is an exciting step forward, receiving a Foreign Exchange (FX) invoice often raises immediate questions: How do currency conversions work? Who pays the fees? And what is the best way to settle the bill without getting stung by hidden bank charges?
Here is everything you need to know about handling foreign currency invoices, from general best practices to how you can process them effortlessly inside Banqup.
How foreign currency invoices work
When a supplier invoices you in a non-EUR currency, you are dealing with a cross-border, cross-currency transaction. Here is how the process works in general business practice:
1. Who bears the currency risk?
When an invoice specifies a foreign currency, you (the buyer) agree to pay the exact amount stated in that foreign currency. Because exchange rates fluctuate every second, the equivalent amount in Euros changes constantly until the moment the payment is executed.
2. The conversion process & rates
When you pay an FX invoice from a EUR bank account, your payment provider converts your Euros into the target currency using a foreign exchange rate. This rate is made up of two parts:
The mid-market rate: The real-time wholesale exchange rate used by global financial institutions.
The provider markup: A small percentage or fee added by the bank or provider to process the exchange.
3. Cross-border network fees (SWIFT)
Most international payments travel across the SWIFT network, a global messaging system connecting banks worldwide. SWIFT transfers usually incur a routing fee, which covers the secure transfer of funds between different banking jurisdictions.
4. Local Banking Identifiers
Different countries use different standards to route payments into local bank accounts:
Europe & UK: Uses an IBAN (International Bank Account Number) and a BIC/SWIFT code.
United States: Uses an ABA Routing Number alongside a local account number.
Canada, Australia, & Asia: Often require local institution codes or specific routing numbers.
Beyond these examples, many other regions around the world operate under their own distinct regulations and banking standards. Fortunately, when processing foreign currency payments, Banqup dynamically adapts to these differences by asking only for the exact bank details required for the recipient's specific country and currency.
How FX payments work in Banqup
Paying international suppliers no longer requires switching between banking portals or manually converting exchange rates. With Banqup, you can pay foreign currency (FX) invoices directly using your existing EUR payment account balance.
Here is a quick overview of how it works:
Automated currency detection: Simply select your non-EUR invoice in Outbound Payments or Purchase Invoices and choose your Banqup payment account. Banqup detects the currency and applies a real-time exchange rate (locked for 30 seconds).
Direct FX transfers: You can also send foreign currency directly to an external beneficiary without linking an invoice via Payment Accounts.
Transparent fees: Every FX payment has a flat 5 EUR SWIFT fee plus live exchange rate conversion—clearly displayed on screen before you hit confirm.
Smart forms: Banqup automatically prompts you for the exact bank details needed based on the target country (e.g., ABA routing numbers for US banks).
Want to know exactly how to pay an invoice step by step with your Banqup account?
Read the Full FX Payment help article
Ready to streamline international bills?
Handling foreign currency invoices doesn't have to mean complex calculations or separate banking tools. By processing both domestic and international invoices within Banqup, you keep full control over your cash flow in one central platform.