What is a foreign exchange deposit?

We pay the Patent Office(s) and local agents (if required) after we receive the invoice payment. There is a gap between the time we invoice you (60 days before the renewal due month) and when we transfer the funds to the Patent Office(s) (30 days before the renewal due month begins).

During that time, currencies can fluctuate, potentially leaving us in a situation where the funds that we invoiced are not enough. For this reason, we charge a small percentage (1–2%) on the transactions that require a currency conversion to ensure that we have sufficient funds at the time of making the payment.

The FX deposit accounts for variations in costs, including official fees, transaction fees, local agent fees, surcharges, and postal or fax charges, as well as the currency pair used for conversion.

In rare cases, fluctuations can be higher due to sudden and significant changes in official fees or unexpected shifts in market exchange rates during the renewal process.

These situations are exceptionally rare and typically occur when patent offices impose sharp fee increases without prior notice or when global currency markets experience extreme volatility.

When we pay the Patent Office, we calculate the exact cost in the local currency based on the actual FX rate on that day. For each transaction, we keep track of: invoiced amount – amount paid to the Patent Office = deposit leftover.

In the long run, the deposit will go in positive, and any unused deposit remains as a leftover balance which you can request as a refund. The refund is only applicable once the unused amount exceeds USD 1000 or EUR 900.

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Related:

What do you include on your invoice?

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