How to check an EOR invoice for FX markup

What information do you need?

• Original payroll amount and local currency.
• Invoice currency and the amount billed for conversion alone.
• Agreed reference-rate source, fixing time and settlement basis.
• Applied exchange rate, stated markup and any rounding rule.
• Separate service, bank, payment or hedging charges.

A difference between today’s spot rate and an earlier invoice is not enough to prove a markup. Currency movement, fixing times and a forward settlement basis can make the comparison invalid.

A worked example with one quote direction

Suppose payroll is €90,000 and the matched reference rate is 0.90 EUR per USD. Its reference value is €90,000 ÷ 0.90 = $100,000. If the invoice charges $102,000 for that conversion alone, the excess is $2,000, or 2% of the reference value.

Formula: effective excess = billed conversion amount ÷ reference conversion amount − 1. Multiply by 100 to express it as a percentage. These figures are fictional. The result is a provider markup only if the benchmark is contractually comparable and other charges or adjustments have been excluded.

Why does quote direction matter?

EUR per USD and USD per EUR are reciprocals. Dividing or multiplying by the wrong one produces a wrong result. Work in invoice-currency amounts first and compare those amounts, rather than subtracting rates quoted in opposite directions.

What if the numbers do not reconcile?

Ask the provider for its calculation, including rounding, estimated-cost adjustments and the timing of the reference rate. Record the explanation with the invoice. Use the evidence to resolve the difference before treating it as an undisclosed fee.

Sources & calculation basis

The buying checklist and examples are EOR Truth’s analysis. Examples are illustrative, not observed supplier prices. See our calculation methodology and editorial standards.

• European Central Bank: Euro foreign exchange reference rates — Primary source for the purpose and limitations of ECB reference rates. Accessed 24 September 2026.