As a freelancer, working with international clients is a great way to grow your income. But if you aren't careful, exchange fees can eat up to 5% of your invoice before it even hits your account.
The "Convenience" Trap
Platforms like PayPal or standard bank transfers often offer to convert the currency for you automatically. While convenient, this service comes at a steep price. They often use a retail exchange rate that is far worse than the market rate, effectively charging you a hidden fee.
Invoicing Best Practices
- Invoice in Your Currency: If possible, ask the client to pay in your local currency. This shifts the conversion fee to them.
- Multi-Currency Accounts: Use modern fintech banks (like Wise or Revolut) to receive USD, EUR, or GBP directly without converting it immediately.
- Check the Rate Before Invoicing: If you must invoice in USD, check the converter to ensure the amount covers your local expenses plus a buffer for fluctuation.
Calculate Your Real Earnings
Before you accept a project for $1,000 USD, check exactly how much that is in your local currency today. Don't guess.
Calculate Earnings
Convert your invoice amount to local currency instantly.
Conclusion
Don't let currency conversion be an afterthought. Treat it as a line item in your business accounting to maximize your take-home pay.