We’re a small company, but have several international customers. When they wire transfer payments, the cost of the transfer is deducted from the total amount due. How do other AR departments handle this?

Unfortunately, this is a common problem. You need to weigh the cost of contacting the customer and asking for full payment against possibly losing the account. Some companies have an automatic write-off amount under a certain threshold. Going forward, your company should consider whether to specify in the terms who pays for the transfer, or build the cost into your product cost, or else accept the transfer cost as a cost of doing business.

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