It’s a borderless world today, and it’s never been easier to work with international clients, remote-collaborate, or receive support from loved ones overseas. But if you’ve ever had an international payment made directly into your bank account, you may have experienced a frustrating trend: the amount you ultimately receive is usually significantly less than what was sent. Why?
One major reason is double currency conversion, an invisible process that quietly diminishes your payment. Particularly if you’re being paid from Europe, the UK, or any country outside of USD, there’s a strong likelihood your money is going through USD before being converted to INR at an added expense that costs you more than you realize.
In this blog, we’ll cover what double currency conversion is, how it operates, and how you can safeguard your revenue.
The Actual Cost of Receiving Overseas Payments
When someone sends you money from abroad, the amount that you receive in your account depends on factors beyond the sender’s amount as well as any fees charged in advance.
There are usually two principal cost components:
| Type of Cost | What it Means |
| Transaction/Processing Fees | A flat or percentage fee to send the money (usually something that is presented upfront) |
| Currency Conversion Charges | The hidden fees built into the exchange rate or added as a conversion fee |
The latter is where things become intricate and costly.
What Is Double Currency Conversion?
Double currency conversion occurs when your funds are exchanged twice before they reach your account.
Suppose your client is in Germany and makes a payment in Euros (EUR). Rather than directly converting EUR → INR, most international payment services (such as PayPal, Payoneer, or even bank SWIFT transfers) initially convert the currency to USD, followed by INR:
EUR → USD → INR
Each of these two conversions incurs its own fees and exchange rate markups.
Why is that? Because most financial systems are designed to handle only a handful of high-value currencies, and USD serves as the default “intermediary” for settlements in most cases.
Example: How Much Money You Lose with Double Conversion
Scenario: You’re an Indian freelancer. A client from Germany pays you €1,000 for your work.
Option A: Double Currency Conversion Conversion path: EUR → USD → INR Rates and Fees: EUR to USD: 1.07 (with 3% fee) USD to INR: 83.50 (with 2% fee)
| Currency | Initial Amount | Fee/Deduction | Conversion Rate (after fee) | Final Amount |
| EUR | €1,000(₹99,260) | – | – | €1,000(₹99,260) |
| USD | $1,070.00(₹92,758) | 3% of $1,070 = $32.10 | 1.07 | $1,037.90(₹89,898) |
| INR | ₹86,520 | 2% of ₹86,520 = ₹1,698 | 83.5 | ₹84,822 |
Option B: Direct Conversion (EUR → INR) Conversion path: EUR → INR Rate used: 89.5 (with 0.5% fee using direct provider)
| Step | Amount | Conversion Rate | Final Value |
| EUR | €1,000 | – | €1,000 |
| INR | €1,000 → ₹88,705 | 89.5 (0.5% fee) | ₹88,705 |
Total Loss Due to Double Conversion: ₹3,883
That’s almost 4.4% of what you earn lost without any explicit explanation in the transaction.
Do that ten times with ten clients or several payments a year, and you could be losing ₹30,000–₹50,000 or more simply due to suboptimal currency routing.
Why Double Conversion Occurs
There are several reasons why recipients are particularly impacted:
- India Settlement Rules (INR Example) According to RBI (Reserve Bank of India) policies, foreign currency payments are generally required to be converted into INR if they are credited to an Indian resident’s bank account. Assuming you don’t have a special account such as an EEFC (Exchange Earners’ Foreign Currency Account), your payment will be automatically converted.
- USD as a Default Settlement Currency The majority of international banks and payment systems continue to employ USD as a clearing currency, even when neither the sender nor the receiver is in the US. This legacy system results in unnecessary conversions.
- Payment Processor Limitations Payment platforms such as Stripe can accommodate payment in EUR, GBP, AUD, etc., but their settlement mechanisms in the backend might only be in USD. Even those services that promote “low or no fees” tend to incorporate the cost in overcharged exchange rates.
Exchange Rate Markups
Most of you are unaware that even when you don’t pay a fee, the exchange rate you receive is generally 2% to 5% lower than the true market rate.
BRISKPE offers the same exchange rate, no markups, no hidden fees.
Here’s how it’s done:
| Provider | Market Rate | Rate Provided to You | Cost |
| BRISKPE | ₹89.5 | ₹89.5 | Nil |
| Traditional Bank | ₹89.5 | ₹86.5 | 3.3% |
| USD Intermediary | ₹89.5 (direct) | Effective ₹84.8 | 5.3% |
How to Avoid Double Conversion and Retain More of Your Money
Fortunately, there are several ways to bypass these surreptitious losses.
- Opt for Direct Conversion Platforms Utilize providers that directly convert your client’s currency to INR. For instance, if you’re receiving payment in EUR, the funds should be converted EUR → INR and not via USD.
- Seek Real-Time Exchange Rate Visibility Select platforms that provide you with the precise exchange rate and final value you’ll be receiving prior to sending or requesting funds. Transparency is key.
- Utilize Card-to-Card Transfer Tools New platforms such as BRISKPE allow real-time, direct card-to-card payments between currencies. They leverage Mastercard’s real-time exchange rate, which is accurate and has low fees.
- Steer Clear of Legacy Banking Channels Traditional SWIFT transfers involve multiple banks and currencies reducing the overall amount. Look for quicker and more affordable digital alternatives.
Conclusion
Double currency conversion, where your payment goes through an intermediary currency such as USD before it reaches the final currency, is a deceptive yet expensive process. It tends to result in unfavorable exchange rates, backend charges, and surprising shortfalls in the amount received.
Whether you’re an international freelancer, digital service provider, or business accepting cross-border payments, such inefficiencies can quickly accumulate, impacting margins and making financial planning challenging. And because such losses are concealed within the conversion process, it’s usually too late to identify them when they occur.
Avoiding double conversion allows you to have complete transparency, improved exchange rates, and quicker access to your money.
Simplify Cross-Border Payments with BRISKPE
BRISKPE allows companies and professionals to accept international payments in 30+ currencies. With real-time exchange rates, clear fees, and multi-currency capabilities, BRISKPE makes your international payments quicker, more equitable, and completely traceable; no hidden losses.
Discover how BRISKPE can optimize your global payments.
In today’s borderless world, it’s easier than ever to work with international clients, collaborate remotely, or receive support from family abroad. But if you’ve ever received an international payment into your Indian bank account, you might have noticed a frustrating pattern: the amount you actually receive is often far less than what was sent. Why?
One key reason is double currency conversion, a hidden process that silently eats into your payments. Especially if you’re receiving funds from Europe, the UK, or any non-USD country, there’s a high chance your money is being routed through USD before being converted into INR costing you more than you realize.
In this blog, we’ll explain what double currency conversion is, how it works, and what you can do to protect your earnings.
The Real Cost of Receiving International Payments
When someone sends you money from another country, the amount that lands in your account is influenced by more than just the sender’s amount and any upfront fees.
There are typically two major cost factors:
| Type of Cost | What it Means |
| Transaction/Processing Fees | A fixed or percentage-based charge for sending the money (often visible upfront) |
| Currency Conversion Charges | The hidden costs baked into the exchange rate or added as a conversion commission |
The latter is where things get complicated and expensive.
What Is Double Currency Conversion?
Double currency conversion happens when your money is converted twice before reaching your account.
Let’s say your client is in Germany and pays you in Euros (EUR). Instead of converting EUR → INR directly, many global payment platforms (like PayPal, Payoneer, or even bank SWIFT transfers) first convert the funds to USD, and then to INR:
EUR → USD → INR
Each of these conversions carries its own fees and exchange rate markups.
Why does this happen? Because many financial systems are set up to process only a few major currencies, and USD is often used as the default “intermediary” for settlements.
Example: How Much Money You Lose with Double Conversion
Let’s break it down with a real-world example:
Scenario: You’re a freelancer in India. A client in Germany sends you €1,000 for your work.
Option A: Double Currency Conversion
Conversion path: EUR → USD → INR
Rates and Fees:
- EUR to USD: 1.07 (with 3% markup)
- USD to INR: 83.50 (with 2% markup)
| Step | Amount | Conversion Rate | Final Value |
| EUR | €1,000 | – | €1,000 |
| USD | €1,000 → $1,037.90 | 1.07 (after 3% fee) | $1,037.90 |
| INR | $1,037.90 → ₹84,822 | 83.5 (after 2% fee) | ₹84,822 |
Option B: Direct Conversion (EUR → INR)
Conversion path: EUR → INR
Rate used: 89.5 (with 0.5% fee using direct provider like BRISKPE)
| Step | Amount | Conversion Rate | Final Value |
| EUR | €1,000 | – | €1,000 |
| INR | €1,000 → ₹88,705 | 89.5 (0.5% fee) | ₹88,705 |
Total Loss Due to Double Conversion: ₹3,883
That’s nearly 4.4% of your earnings lost without any transparent explanation during the transaction.
Multiply that by ten clients or multiple payments in a year, and you could be losing ₹30,000–₹50,000 or more, simply due to inefficient currency routing.
Why Double Conversion Happens
There are a few reasons why recipients are especially affected:
1. Settlement Rules in India (INR Example)
As per RBI (Reserve Bank of India) regulations, most foreign currency payments must be converted into INR when credited to an Indian resident’s bank account. Unless you hold a special account like an EEFC (Exchange Earners’ Foreign Currency Account), your payment will be converted automatically.
2. USD as a Default Settlement Currency
Most global banks and payment platforms still use USD as a central clearing currency, even when neither the sender nor receiver uses USD. This legacy system creates unnecessary conversions.
3. Payment Processor Limitations
Platforms like PayPal or Stripe may support payments in EUR, GBP, AUD, etc., but their backend settlement mechanisms are often limited to USD. Even services that advertise “low or no fees” often hide the cost in inflated exchange rates.
The Silent Killer: Exchange Rate Markups
Most users don’t realize that even if no fee is charged, the exchange rate you get is often 2% to 5% worse than the actual market rate.
Here’s how it works:
| Provider | Market Rate | Rate Given to You | Cost |
| Real-time (e.g. BRISKPE) | ₹89.5 | ₹89.2 | 0.3% |
| Traditional Bank | ₹89.5 | ₹86.5 | 3.3% |
| USD Intermediary | ₹89.5 (direct) | Effective ₹84.8 | 5.3% |
How to Avoid Double Conversion and Keep More of Your Money
Fortunately, there are ways to avoid these hidden losses.
Choose Direct Conversion Platforms
Use providers that convert directly from your client’s currency to INR. For example, if you’re getting paid in EUR, the money should be converted EUR → INR, without going through USD.
Look for Real-Time Exchange Rate Visibility
Pick platforms that show you the exact exchange rate and final amount you’ll receive before you send or request money. Transparency is everything.
Use Card-to-Card Transfer Tools
Modern platforms like BRISKPE enable instant, direct card-to-card transfers across currencies. They use Mastercard’s real-time exchange rate, ensuring accuracy and minimal fees.
Avoid Legacy Banking Channels
Old-school SWIFT transfers often involve multiple banks and currencies, each taking a cut. Consider faster and cheaper digital alternatives.
Conclusion
Double currency conversion, where your payment passes through an intermediary currency like USD before reaching the destination currency, is a subtle but costly process. It often results in unfavorable exchange rates, hidden fees, and unexpected shortfalls in the amount received.
Whether you’re a global freelancer, digital service provider, or business receiving cross-border payments, these inefficiencies can add up quickly, reducing margins and complicating financial planning. And because these losses are buried in the conversion process, they often go unnoticed until it’s too late.
Eliminating double conversion helps you gain full transparency, better exchange rates, and faster access to your funds.
Simplify Cross-Border Payments with BRISKPE
BRISKPE enables businesses and professionals to receive international payments in 30+ currencies. With real-time exchange rates, transparent pricing, and multi-currency support, BRISKPE ensures your global payments are faster, fairer, and fully traceable; no hidden losses.
