Foreign currency payments: how to avoid fees and optimize your transactions

What is a currency payment?

Un currency payment involves settling a transaction in a currency different from that of your business account . For example, a freelancer based in France paying a subscription fee in dollars, or a company paying a supplier in Chinese yuan.

In a professional context, the most frequent cases of use are :

• L' import/export of goods

• Le payment for SaaS software in U.S. dollars

• La remuneration of service providers or freelancers located abroad

• The purchase of online advertising on platforms billing in local currency

Even though payment in foreign currency has become commonplace, it is often poorly optimized. And that's where the costs multiply.

What fees apply to foreign currency payments?

Paying in a currency other than the euro can generate several types of charges, sometimes difficult to anticipate if you're not equipped with a suitable professional tool.

Currency conversion charges

When you pay in a foreign currency, a automatic conversion is carried out by your payment service provider.

• The exchange rate applied : Often based on the interbank rate, but sometimes less advantageous

• Exchange fees On average between 1% and 3% of the transaction amount according to traditional establishments

• The extra cost of double conversion For example, if you pay in dollars from a euro account via a bank using an intermediate currency

Bank commissions and hidden charges

In addition to conversion, there are a number of fees integrated or concealed in the payment process .

• Fixed fee per transaction : Generally between 0,50 € and 5 € depending on the type of card or account used

• The hidden exchange rate mark-up Some banks include a margin in the rate, which amounts to deducting a cost without indicating it as a direct charge.

• Additional costs on the receiver's side : In the case of transfers, some foreign bank intermediaries apply their own fees.

Premium exchange rates: the classic trap

This is one of the most important loss items in currency payments, and is often underestimated.

• Up to 5% difference between a real (mid-market) exchange rate and that applied by certain banks or payment processors, according to ECB FX Benchmark 2024

• The invisible margin but systematic, often without a dedicated line on the bank statement

• This can represent several hundred or even thousands of euros annual loss for a company that regularly pays internationally

To avoid these invisible costs, it is best to use a transparent solution, with a direct interbank rate and a low interest rate. without added commission like the one proposed by Hero which applies Visa exchange rate at no extra charge .

How can I limit charges on foreign currency payments?

With the right reflexes and the right tools, it is possible to drastically reduce foreign currency payment costs or even cancel them altogether.

Always pay in local currency

When you have the choice of paying in euros or local currency, always choose the local currency .

• This avoids the need for conversion by a payment terminal, often increased from 3 to 5

• The terminal generally applies a less favourable exchange rate than a network such as Visa or Mastercard.

• This is a common trap in international hotels, restaurants and e-commerce.

Use multi-currency cards or accounts

Have an account or card capable of handling multiple currencies avoids unnecessary conversions .

• You can pay directly in the seller's currency without using the euro

• This makes it possible to preload your currencies at the best times, when the rate is favourable

Use a specialized platform like Heropay

For companies, a solution like Heropay allows combining simplicity, transparency and savings on all foreign currency payments.

• Free Visa exchange rate no hidden fees on conversions

• Payments in over 150 currencies with physical and virtual cards

• Possibility of centralize team expenses while maintaining a real-time view

• Ideal for professionals working with international suppliers and service providers

What pro solutions for easy currency payments?

For companies, having the right tools enables them to simply pay in foreign currency and at lower cost while maintaining smooth accounting.

Les cartes pro multi-devises

Multi-currency business cards are a simple, flexible solution for easy payment in foreign currencies.

Here is a comparison of the main offers of the market, with a focus on key costs and features.

Heropay is distinguished by the absence of conversion fees (pure Visa rate), the possibility of pay up to 90 days later and the quick card creation depending on use: advertising, service providers, SaaS tools, etc.

Foreign currency accounts or multi-currency IBANs

Multiple IBANs or accounts in different currencies facilitates incoming and outgoing transfers without retraining.

• Heropay includes up to 5 IBANs in its free offer and an unlimited number avec Hero Pro

• This makes it possible to receive or send funds directly in USD, GBP, CHF, etc. without automatic conversion

• Save time, reduce errors, and above all lower interbank charges or downgraded rates

Integration with your accounting/ERP tool

The management of foreign currency payments must also be fluidity on the accounting side .

• Solutions like Heropay integrate with accounting tools via real-time export of receipts and transactions

• This simplifies multi-currency entries and exchange differences and Intracommunity VAT

• Ideal for companies with several employees or regular foreign service providers

Foreign currency payments: what are the accounting requirements?

When you pay in a currency other than the euro, it's essential to ensure rigorous accounting to avoid errors in valuation or taxation.

Enter the correct amount in euros

Each foreign currency payment must be converted into euros at the transaction date price generally provided by the Banque de France or your payment service provider.

This guarantees compliant accounting and facilitates cash flow monitoring.

Managing foreign exchange gains and losses

Differences between the value at the time of payment and the value at the time of collection may result in foreign exchange gains and losses .

• These differences must be recorded in specific accounts (foreign exchange gains/losses)

• They have a direct impact on the company's accounting income

• Depending on the currency, the spread may represent several hundred euros per invoice

VAT and foreign exchange: points to watch out for

In the event of payment to a European service provider or supplier in a foreign currency, the Intracommunity VAT may apply. Make sure:

• De convert VAT base to the correct currency for declarations

• D' avoid double-counting errors if VAT is also mistakenly applied locally

• Keep proof of conversion and rates used

Heropay simplifies your foreign currency payments

With Heropay currency payments become simple, transparent and cost-free. Visit Visa exchange rate is applied without surcharge This avoids the hidden costs that often affect international margins.

The solution also includes :

• From multi-currency virtual cards can be generated on the fly for every need

• Un payment deferral up to 90 days to preserve your cash flow

• From IBAN multiples to segment your flows by currency or team

• A seamless accounting integration so you never lose track

Designed for professionals, Heropay lets you gain visibility over your expenses while optimizing your resources.

It's a useful tool for anyone who wants to making the right financial decisions Whether to better manage their foreign suppliers or to steer their growth with confidence.