Receive USD payments in Europe
Ways your business can receive US dollars from clients
If you're a business in Europe, there are three standard approaches to receiving US dollar payments. You might convert the dollars to euros right away, keep a US dollar balance for later, or ask your US client to send funds to local US account details provided by your payment service. Every path shifts where you face costs or currency swings, and knowing when they arise matters.
- Convert on arrival: Incoming dollars are swapped for euros as soon as the payment lands. After that, you hold only euros. You do absorb the currency conversion margin at this point.
- Hold dollars: Your US dollars stay put in a separate balance. This works well if, for example, you pay American suppliers or settle software bills priced in dollars.
- US account details: Your client wires their payment inside the US, often by ACH or wire, to account details assigned to you by a provider. The provider then links those funds to your main account. The pros and cons of ACH and wire are explained in ACH vs wire transfer for US clients.
How fees and exchange rates apply to each method
There are three elements to your costs: any fee for receiving the payment, the conversion margin (the markup over the market exchange rate), and potential sending charges from your client's US bank. When you convert immediately, you pay the margin every time. If you hold dollars, that cost only happens when, and if, you exchange them. Choosing to use US account details can lower what's charged to the sender, since the transaction looks like a domestic one, but conversion costs surface if you later move to euros.
Remember that exchange rates aren't static. The value of today's dollar isn't what it could be next week or next month. If you keep dollars, you carry that risk knowingly. Opting to convert on arrival means you give up that risk in exchange for the provider's margin.
How to decide which route is practical for your business
If dollar payments arrive infrequently, converting straight away often keeps things simple. Businesses paying dollar invoices themselves avoid unnecessary conversion if they leave funds in dollars and use them directly. For US clients who prefer not to handle foreign transfers, providing US bank routing and account numbers through a provider can mean smoother payment from their end. It's smart to weigh each provider's offer based on your real net receipt in euros, not just advertised fees, as those leave out margins and network costs. For another comparison approach, see multi currency business accounts.
Don't skip the detail: always check your account agreement, find out what protections apply to client money, and confirm the provider's license status. You'll find your regulator's register publicly available online.
2,000 dollar payment: what happens in practice
Consider a Portuguese consultancy that takes a $2,000 payment from a US customer. If they convert as soon as it arrives and the rate carries a margin of 1 percent below mid-market, they give up about 1 percent as a conversion cost. If, instead, they leave the funds in US dollars and use them to pay a software license that's billed from a US provider, there's no conversion on that amount at all.
Frequently asked questions
Does receiving US dollars cost more than receiving euros?
In some circumstances, yes. Incoming US dollar payments can be hit with US sender bank charges, and there will almost always be a currency conversion fee if you change them to euros. Euro zone transfers, on the other hand, are often cheaper because they're routed on domestic euro rails. Always compare the total outlay for your own real-world payments.
Can a European business open a US dollar account?
Yes, many can. A lot of European companies use multi currency accounts or payment services to keep balances in US dollars. Some services provide US bank account details, as well. You'll need to pass business checks and show valid address documents; the particular requirements differ from provider to provider. Double check their terms and look up their authorization with the national regulator before signing up.