What to confirm before paying an overseas invoice

Start with the supplier’s payment instructions

Ask for the invoice currency in its three-letter form, such as USD or EUR, rather than relying on a dollar symbol. Confirm the supplier’s account can receive that currency and ask for the exact account-holder name and bank details required for the route. HSBC Singapore’s transfer guidance identifies currency compatibility and accurate recipient details as checks that can prevent delays or rejection.[1]

• What amount and currency must reach your account to settle this invoice?
• Which bank details should I use for that currency, and what payment reference should accompany it?
• Who pays sending, intermediary and receiving-bank charges?
• Does the due date mean the payment must arrive that day, or that I must send it by then?

If a new email changes bank details or payment procedures, verify the change through an established contact before paying. The FBI recommends checking such changes in person or by phone and obtaining the phone number independently, rather than using one supplied in a suspicious message. Our supplier bank-detail checklist explains what to confirm during that call and before updating a saved recipient.[3]

Work backward from the amount due

For an invoice, compare providers using the same amount delivered to the supplier. Ask each one for the total cost of delivering that amount, including its exchange rate and fees. This answers a different question from sending a fixed personal budget, where you compare how much arrives.

You can compare costs for this example invoice with 5,000 EUR selected as the amount that must arrive. Change the currencies and amount for your own invoice.

If a receiving bank then deducts 15 EUR, the supplier receives 4,985 EUR, leaving a 15 EUR shortfall against the invoice. Ask the transfer provider whether its displayed received amount includes all bank charges and whether it guarantees that amount.

Some bank routes involve other banks whose fees are not known beforehand. HSBC’s UK business price list, for example, says intermediary and recipient-bank charges may be debited separately or deducted from the payment. It describes an OUR option for paying certain overseas charges yourself, while payments through the Single Euro Payments Area (SEPA) require shared charges. Confirm how any fee option works on your route rather than treating its label as a guarantee.[2]

Leave time for the receiving bank

Give the provider your actual deadline and ask when the supplier should have usable funds. HSBC Singapore lists bank cutoffs, weekends, public holidays, intermediary processing and security checks among possible causes of delay. Its timings describe its own service, so obtain an estimate for the provider and route you choose.[1]

For a budget estimate, the ForexRates business worksheet lets you enter invoices in different currencies and view their combined reference value in your budget currency. Clear the example rows, add your invoice amounts and currencies, and choose the currency for your total. Then add actual provider costs to your payment plan; the worksheet total is shown before those costs.

Make it easy to match the payment

Before submitting, compare the final recipient, currency, amount and reference with the supplier’s confirmed instructions. Keep the invoice, quote and payment confirmation together. Send the supplier the payment reference and expected arrival date, then ask it to confirm the amount received.

If the supplier reports a shortfall or delay, use those records to ask the provider what happened. Resolve any remaining invoice balance with the supplier using confirmed payment details, rather than assuming a transfer confirmation means the bill has been fully paid.