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TeaTax
Level 1

Losing money everytime I am paid?

Hello,

 

I live in the UK but work for and get paid by an American company for my services. I get paid twice a month, or every two weeks to be exact. I am losing out on anywhere between $200-$350 everytime I am paid, they are paying into my UK Business bank account from the American Business account via Quickbooks. For example, the last last few payments made to me don't really make sense to me? The below payments are recent ones, that's what's on the invoice email when they send the payment, I am not getting anywhere near this amount (I also check the exchange rate at the time of them sending). This is really bugging me as I am losing out on up to $600 just to be paid every single month.

American Business send me a payment of $3,841.98. 

American Business send me a payment of $8,116.27.

 

I don't receive anywhere near that amount when it reaches my bank account, I am ALWAYS down $200 to $350, surely this can not be correct? As far as I have been told, Quickbooks does not take a fee that large to send payments overseas? I am also struggling to believe the exchange rate is hitting me that hard every two weeks.

Solved
Best answer February 19, 2021

Best Answers
john-pero
Community Champion

Losing money everytime I am paid?

Using QB merchant services still has a cost of receiving payments. 

Online invoicing is 2.9% plus 25 cents per transaction

Desktop invoicing can run from 3.3% to 3.5% plus a transaction fee

 

At $12,000 USD 2.9% is $348, 3.5% is $420

Yes, it sounds at a glance that you are paying somewhere around  5-6% so maybe there is a 1.5-2% currency conversion fee involved. I cannot confirm.  Is there VAT being deducted due to overseas funds entering the UK?

 

BTW, today's rate $1USD = .71 GBP or .82 EUR

Consider requiring your payor to pay using World Remit or Xe, which have low or no fees for remitter and presumably none for recipient

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4 Comments 4
john-pero
Community Champion

Losing money everytime I am paid?

Using QB merchant services still has a cost of receiving payments. 

Online invoicing is 2.9% plus 25 cents per transaction

Desktop invoicing can run from 3.3% to 3.5% plus a transaction fee

 

At $12,000 USD 2.9% is $348, 3.5% is $420

Yes, it sounds at a glance that you are paying somewhere around  5-6% so maybe there is a 1.5-2% currency conversion fee involved. I cannot confirm.  Is there VAT being deducted due to overseas funds entering the UK?

 

BTW, today's rate $1USD = .71 GBP or .82 EUR

Consider requiring your payor to pay using World Remit or Xe, which have low or no fees for remitter and presumably none for recipient

Fiat Lux - ASIA
Level 15

Losing money everytime I am paid?

@TeaTax 

You may have other options to lower your cost and get a better exchange rate:

1. Utilize this payment service

https://veem.grsm.io/veems

 

2. Open a USD bank account and convert to GBP anytime you need

https://transferwise.prf.hn/l/75dqNgB

 

TeaTax
Level 1

Losing money everytime I am paid?

Ok yeah the %s you mentioned above seem to be about right, my own American Bank Account is a good idea actually, I have never thought of that. I don't get involved in any VAT as I am out of the scope for it so VAT is not an issue. 

 

I don't know if my circumstances change with money though if I have them pay into my own American Business Bank account. I would need to do some research 

PayPalTerminator
Level 1

Losing money everytime I am paid?

First off Intuit does not do anything for free. In fact they are the most expensive company to process, because their back bone is Chase. Chase is another rip off company. So pairs go alike. First off your getting large sums of money coming from overseas, and you know right off the bat for international transactions you pay more money!  Either increase your fees to your customer, or find another payment source that has lower rates, or you can wait weeks to get a check from them and then wait another week or so before it clears!

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