Originally Posted by BoxedPixels 3. Late payment - taking into consideration the low cost of a banner, pp transfer fees and the exchange rate from $/£.

Not sure why you've brought this point into the equation?

Yes the payment was late, I'm not bringing that into dispute. But why mention about PayPal fees and exchange rates. This is not the clients fault. You should not expect the client to pay more to cover PayPal's fee's nor should you blame them for current exchange rates.