Why Did My Supplier Receive Less Money? How to Fix an Underpayment

There are five common causes.

1. Intermediary bank fees

International wire transfers may pass through intermediary or correspondent banks. Depending on the payment route and fee arrangement, charges can be deducted before the funds reach the supplier.

International transfers commonly use one of three charge instructions:

Charge code	Who generally bears the charges?	What the supplier may receive
OUR	Sender	The full instructed amount is intended to reach the beneficiary, subject to the route and applicable rules
SHA	Sender and beneficiary share charges	The amount may be reduced by beneficiary-side or intermediary charges
BEN	Beneficiary	Charges are deducted from the payment

Important: OUR is designed to place charges on the sender, but you should still verify the actual receiving amount and your bank's terms.

2. Currency conversion differences

The invoice may be denominated in USD, while the supplier receives CNY or another currency. The applied exchange rate, conversion spread and timing can affect the final amount.

For example, if the invoice is for US$10,000 but the supplier receives the equivalent of US$9,850 after conversion and deductions, the shortfall is US$150. The exact cause must be verified before you decide who should cover it.

3. Incorrect payment instructions

The payment may have been sent in a different currency from the invoice, or the parties may have misunderstood which party was responsible for transfer fees.

4. A commercial deduction

The buyer may deduct freight, a rebate, a quality adjustment or another disputed amount. This is not necessarily a payment-processing problem; it may require a commercial agreement.

5. An invoice or reconciliation error

The amount sent may not match the latest invoice, purchase order or agreed balance. Check for revised invoices, duplicate records and previous partial payments before sending more money.

Use this four-step process.

Step 1: Trace the payment

Collect the payment confirmation, transaction reference, invoice currency, charge instruction and supplier's bank statement or receipt details. Ask your provider to explain any deductions.

Step 2: Calculate the outstanding balance

Compare the invoice amount due with the amount credited, using the agreed currency and exchange-rate basis. Separate bank fees, FX differences and commercial deductions.

Step 3: Agree on the correction

Confirm in writing whether you will send a top-up payment, adjust the invoice or offset the difference against a future order. Do not assume the supplier has accepted a deduction.

Step 4: Prevent the next shortfall

Confirm the currency, charge arrangement, expected amount received and payment route before releasing the next transfer.

Should you send a second payment?

Usually, a confirmed shortfall is resolved with a documented top-up or a mutually agreed invoice adjustment. A completed transfer generally cannot simply be edited to increase the amount already credited.

Before sending the balance, confirm that the first payment has been reconciled and that the supplier agrees on the outstanding amount. This helps avoid duplicate payments and disagreements over the final invoice balance.

The best approach depends on what caused the shortfall.

Cause	What to do next time
Intermediary bank deductions	Confirm charge instructions and ask whether the route may deduct fees
FX differences	Agree on the invoice currency and who bears conversion costs
Wrong payment currency	Confirm the supplier's accepted currency before paying
Disputed deductions	Document the adjustment and obtain written agreement
Repeated reconciliation errors	Match payment references, invoices and beneficiary records before release

For businesses paying suppliers regularly, payment-route choice matters too. A route that works for one currency or market may not be the most suitable for another.

According to Atradius's 2026 Asia Payment Practices Barometer, more than 80% of surveyed suppliers reported late payments. The report also found that commercial frictions, including delivery and quality disputes, contribute to payment delays. These findings concern payment practices broadly, not underpayments alone, but they underline why clear payment terms and reconciliation processes matter. (Atradius, 2026)

There is no universal solution for every shortfall. Choose based on the currency you hold, the supplier's location, and how the payment is processed.

Local Accounts: Access Supported Local Payment Methods

For businesses operating in supported markets, XTransfer Local Accounts and local payment infrastructure can help connect local-currency payment activity with cross-border trade in nearly 60 countries and regions.

Availability, limits and transaction conditions vary by market and payment method. See XTransfer's local payment services.

If the underlying problem is the cost or complexity of moving funds across borders, a supported local payment route may offer an alternative to a conventional international wire. Before using it, confirm the payment currency, fees and expected beneficiary amount. A local payment method does not automatically eliminate FX differences or guarantee that an invoice will be settled in full.

Global Accounts: Manage Multiple Currencies

XTransfer Global Accounts support 20+ currencies and payments across 200+ countries and regions. (XTransfer Global Accounts)

Businesses that regularly pay suppliers in different currencies need to understand where conversion occurs, which balance funds each payment, and what amount the beneficiary is expected to receive. Multi-currency account management can help organise these decisions and make FX costs more visible.

Before sending, confirm the agreed currency and the total cost of the specific transaction. Holding multiple currencies does not by itself guarantee a full-value payment.

X2X: Pay Eligible Businesses Within the XTransfer Network

X2X supports near-instant transfers between eligible XTransfer users, with zero transaction fees. (XTransfer Global B2B Payments)

If both buyer and supplier are eligible XTransfer users, X2X may provide a direct payment option without the same traditional intermediary-bank path for that transaction. This can simplify the payment route, but businesses should still confirm the invoice amount, currency and applicable transaction conditions.

Which XTransfer option should you consider?

• Local Accounts: When supported local payment access is relevant to your market.
• Global Accounts: When managing multiple currencies is a key part of your payment process.
• X2X: When both parties are eligible XTransfer businesses and a direct network transfer is available.

These options address different payment needs. None automatically corrects an underpayment that has already occurred.

Payment method	Main consideration	Best suited to
International wire transfer	Check intermediary fees, charge instructions and FX costs	Established supplier payments
Local payment method	Confirm local availability, limits and settlement currency	Eligible markets with supported local rails
Multi-currency business account	Review conversion timing and currency balances	Businesses paying across several currencies
X2X transfer	Both parties must be eligible XTransfer users	Eligible B2B payments within the network
Escrow or letter of credit	Review contractual terms, fees and documentary requirements	Transactions where payment protection or bank undertakings are needed
Card or online payment service	Review merchant fees, FX conversion and supplier acceptance	Smaller orders or online purchases

For an existing underpayment, the priority is to establish the cause and settle the agreed balance. For future orders, compare the full cost and payment terms rather than relying on the headline transfer fee alone.

When a supplier receives less than the invoice amount, do not assume the bank made a mistake—or immediately send another payment.

Trace the transaction, calculate the shortfall, agree on the correction and review the payment route.

For recurring international trade, XTransfer offers different options for supported local payment methods, multi-currency management and eligible direct B2B transfers. The right choice depends on your market, currencies and supplier arrangements.

The goal is simple: make the amount due, the amount sent and the amount received easier to verify and reconcile.

Why did my supplier receive less than I sent?

Possible causes include intermediary-bank fees, currency conversion, an incorrect payment instruction or a commercial deduction. Compare the payment confirmation with the supplier's receipt and ask your provider to explain any deductions.

Who pays international transfer fees?

It depends on the agreed charge arrangement. Under OUR, the sender is generally responsible for charges; under SHA, charges are shared; and under BEN, the beneficiary bears the charges. Confirm the provider's specific terms because the amount ultimately credited can depend on the payment route.

Should I send another payment to cover the shortfall?

Only after reconciling the first transfer and agreeing on the outstanding balance with your supplier. A documented top-up may be appropriate, but sending money before confirming the original transaction can create duplicate-payment and reconciliation problems.

Can XTransfer help prevent supplier underpayments?

XTransfer offers payment options that may suit different trade scenarios, including Local Accounts, Global Accounts and X2X. These can help businesses choose a route suited to their market and currency needs, but no payment method guarantees that every transaction will arrive without deductions or FX differences. Check the applicable terms before sending.

Which XTransfer solution is best for international supplier payments?

Local Accounts are relevant where supported local payment methods are available; Global Accounts are designed for managing multiple currencies; and X2X is available for eligible transfers between XTransfer users. The best fit depends on your location, supplier, currency and transaction eligibility.

This article is compiled from publicly available sources and interview content for informational purposes only and does not represent the official views of XTransfer. XTransfer accepts no liability for any damages arising from reliance on this content.