What is Multi-currency account?

Multi-currency account

A multi-currency account lets you receive, hold and convert money in several currencies within the same account, with local banking details in different countries. It avoids every international payment going through a conversion with a hidden margin, which is where much of the income is lost when invoicing abroad.

For someone billing in dollars and spending in euros, the gap between a real exchange rate and a bank margin can reach three or four per cent of annual revenue. Holding local banking details also removes friction for the client, who often prefers not to deal with international transfers.

Also called: multi-currency wallet, borderless account

Related terms

Cross-border invoicingCross-border invoicing is issuing invoices to clients located in another country, applying whichever indirect tax rules fit depending on where the client sits and whether they are a business or a consumer. It determines whether you charge tax, whether the reverse charge applies, or whether the transaction is out of scope.
Total compensationTotal compensation is the complete package of an international remote role: base salary, variable pay, equity, learning and equipment budgets, time off and health cover. Comparing base salary alone across countries leads to the wrong conclusion almost every time.