Question 1

What exchange rate should I use on my invoice?

Accepted Answer

Use the rate from a public, dated source on the invoice date — most freelancers use the ECB reference rate (published daily at ~16:00 CET) or OANDA's daily rate. Whichever you pick, name the source and the date on the invoice itself. That single line is what protects you if the FX rate moves before payment lands.

Question 2

Should I invoice in my currency or the client's currency?

Accepted Answer

Invoicing in the client's currency is more convenient for them and usually gets paid faster, but it shifts the FX risk onto you. Invoicing in your home currency keeps your number predictable but pushes the bank's conversion cost onto the client. A common middle ground is to price in your currency and quote both totals on the invoice using a locked rate.

Question 3

How do I lock an exchange rate on an invoice?

Accepted Answer

Add a one-line clause: "Total billed in EUR. FX rate locked at 1 EUR = 1.0823 USD per ECB reference rate, 2026-05-03." That makes the rate part of the agreement. If the client wants to pay later at a worse rate, the contractual figure still applies.

Question 4

Do I have to use the mid-market rate?

Accepted Answer

No, but it is the most defensible. The mid-market rate (the rate banks use between themselves, published by ECB and OANDA) is what services like Wise advertise. If you use your bank's rate instead, disclose that on the invoice — banks typically build in a 1–4% spread that you should not absorb silently.

Question 5

What happens if the exchange rate changes between the invoice date and the payment date?

Accepted Answer

Without a locked rate, the client's bank uses whichever rate applies at payment time and you wear the difference. With the rate locked on the invoice, the contractual amount is fixed — any FX gain or loss between invoice and settlement is recorded separately in your books, not deducted from what the client owes.

Question 6

Who pays the bank fees on a foreign currency invoice?

Accepted Answer

By default, both sides pay something: the sender's bank charges a transfer fee, and the receiver's bank takes a cut on the conversion. State on the invoice who covers what — for example, "Bank charges and FX margin to be borne by the sender" — otherwise the cost gets split silently and you end up under-collecting.

Question 7

How do accountants treat FX gains and losses on invoices?

Accepted Answer

Most accounting standards (US GAAP, IFRS) record the invoice in your home currency at the invoice-date rate, then post any difference between that and the actual settlement amount as a foreign exchange gain or loss in your P&L. That is why locking the rate on the invoice matters — it sets the baseline for the gain/loss calculation.

Question 8

Does this tool pull live exchange rates?

Accepted Answer

No, by design. You enter the FX rate yourself from ECB, OANDA, your bank, or whichever source you would defend in a dispute. A live API rate would drift between page loads and would not match the rate you cite on the invoice. Manual entry keeps the invoice, the disclosure, and your books on the same number.

Currency Exchange Invoice Helper

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