Shortfalls in payment of invoices from eurozone client

MagicMoneyTree81

I’ve been underpaid for each and every one of six invoices I sent to a client 12-18 months ago. I only just noticed this when doing my tax return.

The client is based in the eurozone so something must have gone awry with the € to £ conversion. I billed them in pounds sterling.

The client has conceded that TWO of the invoices were wrong because they paid the £ amount billed in € by mistake. So I sent screenshots from my bank account to prove that no, ALL SIX amounts were wrong.

And yet they still then insisted that their calculations were correct, and did not acknowledge the screenshots.

The total shortfall is about £150 and they want to repay £100, which given their previous payments will probably land in my account as about £90!

I need the cash ASAP but I am not happy about writing off £50-£60, however modest this amount.

I’m thinking of offering to send them more definitive proof of the shortfall than screenshots (I don’t know exactly what this could be, but I am hoping this alone might work)…

Any other suggestions at this point?

Thanks in advance…

On-the-coast

Is this a client you intend to keep a relationship with?

after this length of time I’d just take the offered cash and mentally write this off.  You might get nothing if you push harder. 

born_again

If they are paying you in euro, then there will be a fee for exchange at your bank.

What exchange rate have they been using? 

Either you should have billed in Euro, or they should have paid in £.

MagicMoneyTree81

born_again said:

If they are paying you in euro, then there will be a fee for exchange at your bank.

What exchange rate have they been using? 

Either you should have billed in Euro, or they should have paid in £.

They converted the amount I billed in pounds to euros, and paid me that amount in euros - or so they claimed. I do not know what exchange rate they used. My other two clients in the eurozone paid me accurately so I don't know what went wrong here.

MagicMoneyTree81

On-the-coast said:

Is this a client you intend to keep a relationship with?

after this length of time I’d just take the offered cash and mentally write this off.  You might get nothing if you push harder. 

There's a chance I might want to work with them again. Unlikely but it pays not to burn bridges. I am being as polite as possible and not accusing them of anything malicious. It's only £50 but given my financial situation I need all the cash I can get. Nevertheless, I hear what you are saying! I might try one more time but then take the cash if that fails.

Bookworm105

for those sums paid in Euro, given the relatively modest shortfall, could it be bank charges have been deducted before crediting your account ?

martindow

Sometimes intermediate banks are involved who make their charges as well. There always seem to be be losses on international payments.  How much were these invoices for?  The shortfall percentage is what is important here.  I've queried this with Santander who I use for business banking and they told me that they don't take any extra beyond their published fee and have no way of telling me what other banks do.

Maybe it would be an idea to increase your rates by a percentage point or two to ensure you receive what you would like.

penners324

Sounds like you need a Euro account and be paid into that.

Wise or Revolut would work

DullGreyGuy

penners324 said:

Sounds like you need a Euro account and be paid into that.

Wise or Revolut would work

It may help with fees but still doesn't help with the fact the OP is billing in GBP but getting paid in EUR. Ideally in such a situation the contract would clarify what FX rate should be used etc to avoid the issue where the OP is expecting the mid market rate at the date of the invoice generation whereas the client may be using the FX their bank offers at the date of payment which may include a spread margin. 

Accepting the payment in EUR then partially exposes the OP to FX risk, though it may go in their favour if they dont have immediate need for the liquidity.