Currency Conversion and Payment Tracking

When payments cross borders, exchange rates and bank fees can make support ledgers messy. A dollar ordered in one country may arrive as euros, pesos, or yen—with variable conversion losses. Clear rules and documentation keep everyone aligned on what was “actually paid.”

Fix the reference currency. The order should state the currency of the obligation (e.g., “U.S. dollars”). If the paying parent must send funds in another currency, specify that the conversion will use the bank’s posted retail rate on the date of transfer or another objective benchmark. Include who bears transfer and conversion fees (usually the payer).

Pick a conversion method. Common choices include: (1) the SDU’s credited amount in the order currency controls, (2) the sending bank’s amount converted at its rate on the transfer date, or (3) a published reference rate (e.g., Bloomberg closing rate) on the posting date. Whatever you choose, write it into the order or a stipulation to prevent fights later.

Document every hop. Cross‑border wires can pass through several correspondent banks. Keep the wire receipt, SWIFT/IBAN numbers, intermediary bank info, and the final deposit confirmation. Attach these to a portal message so the agency can reconcile the exact credited amount and date.

Handle partial fills. Exchange rate swings can cause shortfalls of a few dollars. Decide whether small deficits will roll forward or trigger arrears. Many courts adopt a tolerance band (e.g., differences under $10 are ignored monthly but trued‑up quarterly). Include a quarterly reconciliation clause that uses a single reference rate for the period to settle under‑/over‑payments.

Track fees separately. Bank fees should not be confused with support. Require the payer to add expected fees on top of the support amount. If fees are deducted mid‑route, require a second make‑up payment once the final credit amount is known. Keep a ledger line for “fees paid” to document good faith and assist with tax or accounting questions later.

Tools and automation. Use the SDU portal if it accepts international cards or ACH with currency conversion. If not, consider reputable remittance services that provide detailed receipts and predictable rates. Automate monthly transfers on the same day to reduce rate variance; over time, the swings tend to average out.



Audit and reconcile. Quarterly, compare the ordered total in the reference currency to the SDU’s credited totals. Create a short spreadsheet showing original currency sent, rate used, fees, and final credit. Share with the other parent and the agency. A transparent audit trail turns “where did $7 go?” into a solvable math exercise.

Bottom line. Cross‑border payments work when the order names a currency, defines a conversion method, assigns fees, and requires receipts. With those rules and a simple reconciliation habit, exchange rates stop being an argument and become just another line item.

Disclaimer: Educational information only; not legal advice. Banking rules and fees change over time. Consult your child support agency and your bank.

Example clause. “Obligor shall transmit funds monthly in U.S. dollars. If payment is sent in another currency, the credited amount shall be determined by the receiving bank’s posted retail exchange rate on the date of deposit, net of transfer and conversion fees borne by the obligor. Differences under $10 in any month shall be reconciled quarterly using the mean monthly rate published by the central bank.” Add a line requiring both parties to exchange quarterly reconciliations within 15 days so small variances don’t fester into disputes.