wire transfer fees will be deducted from invoice Thread poster: sonjabizjak
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sonjabizjak 
Canada
Local time: 07:24
English to German
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I am about to establish collaboration with a new company and it struck me that wire transfer will be deducted from my invoice. Is that normal?
| | | | Edward Potter
Spain
Local time: 16:24
Member (2003)
Spanish to English
+ ...
In my experience whoever pays the wire transfer fees is something to be negotiated. It could be the translator, or it could be the client. Finally, some banks allow you to split the costs of the transfer with their online tools.
| | | | Nicole Schnell
United States
Local time: 07:24
English to German
+ ...
In memoriam | Wire transfer fees can be expensive | Jun 21, 2014 |
To send a wire transfer from a business account in the US costs around $40.00, for example.
If the translator doesn't offer any alternatives in terms of payment methods, this will turn into an expensive hobby.
| | | | | Wire Transfer Fees | Jun 21, 2014 |
I don't believe that there are any set rules. Some of my overseas clients (translation companies) have been kind enough to foot the bill in the past. On other occasions, the translator ends up wearing it. For established business partners one strategy I use is having the translation company pay numerous invoices at once. For example, a $40 fee on a combined invoice of US$5,000 is minimal compared to paying US$40 on five different invoices of US$1,000 each. Then again, I wouldn't suggest suc... See more I don't believe that there are any set rules. Some of my overseas clients (translation companies) have been kind enough to foot the bill in the past. On other occasions, the translator ends up wearing it. For established business partners one strategy I use is having the translation company pay numerous invoices at once. For example, a $40 fee on a combined invoice of US$5,000 is minimal compared to paying US$40 on five different invoices of US$1,000 each. Then again, I wouldn't suggest such an approach when working with a new client or when working with a single client. The risks are just too great.
The only other thing I can suggest is that you get an itemized settlement notice which shows both the original amount and the amount minus the transfer fee. You should then be able to deduct the transfer fee as a legitimate business expense come tax time. Hope this helps.
JH ▲ Collapse
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Sybille Brückner
Germany
Local time: 16:24
Member (2003)
English to German
+ ...
From which country is your client, Sonja?
| | | | Sheila Wilson
Spain
Local time: 15:24
Member (2007)
English
+ ...
| Your invoice is payable in full | Jun 21, 2014 |
As the supplier, it's your right to set your own terms: how much, when, by which method, into which account and in which currency. I repeat: that's your right, not the client's, Think back to whenever you've contracted anyone to do anything: alter clothes, design a website, install a kitchen...
Of course, particularly when the client is in another country, it always pays to be flexible. This means negotiating the best deal. But no, I don't agreee that it's normal for anything to be... See more As the supplier, it's your right to set your own terms: how much, when, by which method, into which account and in which currency. I repeat: that's your right, not the client's, Think back to whenever you've contracted anyone to do anything: alter clothes, design a website, install a kitchen...
Of course, particularly when the client is in another country, it always pays to be flexible. This means negotiating the best deal. But no, I don't agreee that it's normal for anything to be deducted from your invoice - not one single cent/centime/penny. If your client agrees to give you their work, they agree to pay your invoice in full.
That doesn't mean you will necessarily receive 100%. Banks at both ends may make charges, PayPal will make a charge, etc. Your client pays to send the money; you pay to receive it. That's what's normal.
The flexibility could involve using PayPal for small amounts and wire transfers for larger amounts, or it could mean monthly invoicing, or holding off invoicing until a certain threshold is reached (or a certain time limiit, whichever arrives first).
But I think it's fundamental and worth repeating loud and clear: your invoice is payable in full.
What's the client going to expect if you do a small job? Payment from you? It's absurd. Mind you, even if each party pays their own fees (by far the most common arrrangement) you could end up receiving very little, hence the need to negotiate the best deal for both parties. ▲ Collapse
| | | | sonjabizjak
Canada
Local time: 07:24
English to German
+ ...
TOPIC STARTER | Thanks a lot for your replies!!! | Jun 21, 2014 |
Thanks to all of you - your replies were very helpful!!! Thanks a lot to Sheila Wilson - it really helps how to go about things and not just do everything your client wants. Thank you
| | | | | This highlights the big differences between the European and US banking systems. | Jun 21, 2014 |
In the UK, where I come from, everyone pays everything by wire transfer, and domestic transfers are fast and free.
In the US, where I live, my customers pay by check. The checks pile up on the table and are usually covered in coffee stains by the time I pay them in to the bank three months later.
Anyway, I think the rule is perfectly simple: the customer pays their bank charges, and you pay yours.
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Your invoice is payable in full, yes, though on the other hand the creditor shouldn't be allowed to choose highly expensive payment methods if cheaper alternatives are available.
If your client would deduct all fees from payments for your services, then that would obviously not be cool, but it would still be a business variable rather than a warped sense of ethics or propriety or entitlement. At least in the absence of convincing evidence to the contrary. A business variable means i... See more Your invoice is payable in full, yes, though on the other hand the creditor shouldn't be allowed to choose highly expensive payment methods if cheaper alternatives are available.
If your client would deduct all fees from payments for your services, then that would obviously not be cool, but it would still be a business variable rather than a warped sense of ethics or propriety or entitlement. At least in the absence of convincing evidence to the contrary. A business variable means it's more or less ethically neutral as long as you get fair notice and aren't forced into the deal, which you either accept or decline.
Now, if you had had no agreement regarding transfer/cheque/whatever fees and a client wanted to deduct the cost of each and every possible payment method used, that would be a different story — again, though, only to the extent that the general practice in the client's country or culture were not for the seller to cover the fees. ▲ Collapse
| | | | John Fossey
Canada
Local time: 10:24
Member (2008)
French to English
+ ...
The client often deducts bank transfer fees, which is why I refuse to accept payment by bank transfer for amounts less than $500. The fees can still amount to $40 in some cases. I have had one or two cases where a client refuses to comply, in which case I have told them that there will be an additional charge for bank transfer.
For some EU clients that seem to have no alternative than to pay by bank transfer I offer Moneybookers (now Skril). Their bank transfer fee to Canada is r... See more The client often deducts bank transfer fees, which is why I refuse to accept payment by bank transfer for amounts less than $500. The fees can still amount to $40 in some cases. I have had one or two cases where a client refuses to comply, in which case I have told them that there will be an additional charge for bank transfer.
For some EU clients that seem to have no alternative than to pay by bank transfer I offer Moneybookers (now Skril). Their bank transfer fee to Canada is reasonable, about $4 as I recall. ▲ Collapse
| | | | 2GT
Italy
Local time: 16:24
English to Italian
+ ...
| Internet banking ~ no fees | Jun 24, 2014 |
In Europe, we have Internet banking services. Which means we spend no fees or extremely low fees for wire transfers (EU and extra-EU).
In my business, each party pays for its own bank fees (I don't accept checks).
My bank charges no fees anyway, and the only bank fees I pay is the one of the intermediate banks, if any.
Bye!
Gianni
| | | | Sheila Wilson
Spain
Local time: 15:24
Member (2007)
English
+ ...
| Are you actually talking about their bank fees or yours? | Jun 24, 2014 |
John Fossey wrote:
The client often deducts bank transfer fees, which is why I refuse to accept payment by bank transfer for amounts less than $500. The fees can still amount to $40 in some cases. I have had one or two cases where a client refuses to comply, in which case I have told them that there will be an additional charge for bank transfer.
For some EU clients that seem to have no alternative than to pay by bank transfer I offer Moneybookers (now Skril). Their bank transfer fee to Canada is reasonable, about $4 as I recall.
I'm just wondering if we're talking about the same fees, John.
If a client in Singapore (for example) sends a wire transfer to Canada, their bank may well charge them for that service. Let's say their bank charges USD 60. Your bank in Canada may charge you for receiving that transfer, say USD 40. There may also be some charges by an intermediate bank (or even by more than one bank), but let's ignore them for the moment. Do you mean that your invoice for USD 500 is reduced, by the client, to USD 440? Those USD 440 are received in your bank, which then charges you USD 40 for processing it, leaving you with just USD 400 from an invoice of USD 500?
Or is it what I consider to be an acceptable arrangement where the client sends USD 500 (accepting their bank's fee as their own business expense), and you receive USD 460, having had to accept your bank's fee as a business expense?
At least one of my banks (I have 3 in different countries) gives me the option for every wire transfer to (a) pay all charges myself (b) charge everything to the receiver or (c), the one marked as the default "normal" method, of each party paying their own fees.
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2GT
Italy
Local time: 16:24
English to Italian
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| Bank transfer payment instructions | Jun 24, 2014 |
Sheila Wilson:
At least one of my banks (I have 3 in different countries) gives me the option for every wire transfer to (a) pay all charges myself (b) charge everything to the receiver or (c), the one marked as the default "normal" method, of each party paying their own fees.
Correct.
For any outgoing wire transfer the sender can give the following payment instructions:
- BEN
- SHA
- OUR
Those instructions result in the following payments for the beneficiary:
The OUR instruction means the sender pays all transfer charges. You receive all your payment.
SHA (shared) means the sender only pays his bank's outgoing transfer charges. You receive your payment minus the correspondent (intermediary) bank charges.
BEN (beneficiary) means the sender does not pay any charge. You receive your payment minus all transfer charges (including the sender's).
Gianni
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