Methods of getting paid from a different country than your own.

[Freeheel]

Hi All,

 

In these days of international money transfers combined with easy electronic transfers, I'm curious what the best way you have found to get paid by clients in other countries.

 

I'm sure we've all been bitten by various payment schemes that had hidden costs, and was curious what was working well for people.

 

ie,  Paypal seems to have a 2.9% charge between US and Canada.

 

ie  I sent a payment to Germany for something recently and used a bank draft, and paid a significant amount for it, and then had the receiving bank take a similar amount off the back end without any warning, leaving the amount significantly short! (and the vendor I was dealing with somewhat miffed...)

 

Anyway, looking specifically for the best way to receive a payment Germany to Canada, Euros to CAD, but it can turn into a more general discussion thread if it happens that way.

 

Cheers,

Brent Calkin

[studiomprd]

BC: " looking specifically for the best way "

there is no single best way, depending on a number of variables.

typically, major credit card transactions are pretty good in a variety of situations.

With international clients you need to be specific including that the remittance needs to be in your local currency and net after all charges and fees; but, typically credit card transactional fees are absorbed by the business accepting the card. there is also the constant fluctuating of the currencies, leading to the expression: "flucted, again"

[VASI]

If I am remember correctly; I paid 5 or 8 euros bank fee to send money in Germany (buying boompole from Ambient) via National Bank of Greece. It was a direct deposit and cash. Piraeus bank wanted around 10-12 euros (private bank).

[Vincent R.]

Europe country to Europe country is regulated. Therefore cheap. I live in Turkey, non EU, so bank transfer can be a bit more expensive, and is slowwww... Therefore I ask for cash on delivery of sound files, or, and it is a bit controversial, I used Western Union recently for some large sums recently (4x 1500 euros). It was about 4.50 euros per transaction and it was in my pocket the hour after the producer did his thing on his side.

[Constantin]

With any client outside of EU, I too go for cash payments. Everything else is just a hassle. Made an exception for Switzerland recently, but it went ok. For me, these are mostly day jobs, so the risk is pretty minimal.

In terms of payment options, it depends on if you are the buyer or seller. The seller usually absorbs all fees, credit card, PayPal or whatever. PayPal actually makes it fairly easy to reclaim your money if something went wrong. But if you are the seller that's also a problem, because PayPal doesn't tend to discuss reclaims with sellers. They are all about the buyer.

[Constantin]

If I am remember correctly; I paid 5 or 8 euros bank fee to send money in Germany (buying boompole from Ambient) via National Bank of Greece. It was a direct deposit and cash. Piraeus bank wanted around 10-12 euros (private bank).

This really shouldn't be the case. Country to country payments within the Euro zone should not incur any fees, but you should now use SEPA

[ninjafreddan]

I use Paypal and Western Union. Preferably PayPal because the receiver sees the money right away and there is a possibility to reclaim the payment (even though the system is dodgy). My accountant is used to my PayPal transactions, they are logged and easy accessible.

I bought a Dangerous Mixer from a dude in the US and he insisted that I should use Western Union. Which I did, a bit of a hassle finding a WU office and they charged me about 6% for the transaction. So for me PayPal is cheaper, about 4% transatlantic me thinks.

The good thing with Western Union is that they can transfer money to and from basically any country in the World. Lots of non-taxed money changing hands via WU.

Within EU, I just tell the client to do a bank transfer, sometimes it's almost free and on other occasions it costs me about six euro flat rate to receive money from another EU country.

Cheers

Fred

Sent from my iPhone using Tapatalk

[ninjafreddan]

Double post, sorry.

[Malcolm Davies Amps CAS]

This really shouldn't be the case. Country to country payments within the Euro zone should not incur any fees, but you should now use SEPA

Not quite true Constantin. Any transaction from the UK to either an EU or non EU bank incurs a flats rate fee of 25 UK pounds. A similar amount may be payable at the receiving bank depending on the country. On the prescribed form you have to declare who is paying what for the charges.

[Christian Spaeth]

I have received payments via Paypal and bank transfer, from countries including the UK, France, USA and others. I wasn't aware of the UK fee that Malcolm mentions, so I assume the buyer (i.e. client i.e. money sender) pays that automatically.

[studiomprd]

CS: " so I assume the buyer ... pays that automatically. "

beware, you could get burned...

[Constantin]

Not quite true Constantin. Any transaction from the UK to either an EU or non EU bank incurs a flats rate fee of 25 UK pounds. A similar amount may be payable at the receiving bank depending on the country. On the prescribed form you have to declare who is paying what for the charges.

When I said "within the Euro zone", I meant the Euro zone, i.e. the currency €, not the EU. Since England is not participating in the Euro I am not surprised you had those charges.

In such a case, PayPal or credit card really is best.

[Freeheel]

Thanks guys, I think Paypal is going to get the job for this one, and I'll have to build in that 4%

 

Cheers,

Brent Calkin