Information technology is one of the movers of business globalization. Nowadays, businesses are not confined to one location since products and services are visible to customers all over the world. You can receive payments from international customers regardless of where you are located.
International payments are far from simple, but it should not be a significant setback for your business. Receiving payments from other countries requires that the money goes through the system of various banks and financial institutions. The process of transferring amounts abroad can discourage customers to obtain a product or service offshore.
As a business owner, your objective is to provide a seamless buying experience to clients. But to protect your interests, you should also be aware of how you can receive money from customers in euros or US dollars with ease.
How international money transfers work
Sending money to a person or business from another country requires an international money transfer system. The sender uses the services of a bank or remittance companies to transfer money to the recipient’s account. The recipient provides the details where he or she wants to receive the funds, whether directly to a bank account or at an authorized pick-up location. The recipient receives the funds depending on the service provider’s turnaround time.
For example, money transfers to the UK can be coursed through a bank or money transfer companies like Western Union or MoneyGram. There are also online money transfers and payment services like PayPal, Xoom, WorldRemit, and TransferWise. It is important to remember that every money transfer service has its pros and cons.
Is it possible to receive money from customers in euros or US dollars?
Yes, it is possible to receive money from customers in US dollars or euros, but with a fee, of course. A credit card is a popular payment option, but some customers prefer not to disclose their credit card details online. Also, some customers do not have credit cards.
If you are processing payments from overseas customers, you should be able to provide options to ensure convenience and satisfaction. Here are the most common ways to receive customer payments in euros and US dollars:
1. Bank to bank
Customers sending payment from their bank account to your bank account is a traditional form of wire transfer. It may take a few days to several days to receive the money in your bank account. You can receive the money in euros or US dollars, provided that you have an account in that currency. You can only receive the amount in euros or US dollars if you have a bank account in euros or US dollars. If you only have a local account, the funds will be converted using the prevailing exchange rate.
2. Traditional money transfers
Money transfer companies like Western Union, MoneyGram, and Xoom, allow sending of funds by visiting an agent’s office. Funds transfer may also be performed through phone or online. To receive the money from your customer, you must have a reference number or tracking number to claim it to any authorized pick-up location. There is an option to receive the funds directly to your bank account, prepaid debit card, or mobile wallet. If you choose to pick up the money personally, you can also receive the funds in US dollars or euros.
3. Online funds transfer
The introduction of online money transfer services brought about more convenience to customers seeking faster funds transfers with reasonable fees. Online money transfer services are the best option for customers who prefer the practicality of transferring money over the Internet. One of the most well-known payment methods that you can use online is PayPal, but numerous services have entered the market to meet the needs of consumers.
Many business owners prefer using TransferWise to receive money since it allows them to receive currencies. Currencies that you can receive through TransferWise are the Australian dollar, euros, New Zealand dollars, Polish zloty, and US dollars. Once you receive a USD (or euro) payment from your customer, you are allowed to transfer it directly to your bank account. You may also convert the funds to your preferred currency directly from the online app.
All businesses encounter challenges, and you should be ready to take them on. An excellent indicator that your company is growing is when products and services are recognized around the world. To accept cross-border payments, you must take fees, exchange rates, and speed of transaction into consideration. But beyond the rates and fees, you must understand the needs and preferences of your customers. Giving your clients different payment options is the key to keep them as loyal customers.