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Successful Software

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Bingo Card Creator

Accepting wire transfer from outside US to US bank acct?

I provide a business service to mISVs and I recently picked up a client in an eastern European country. They mentioned using SWIFT for payment.

I don't know jack about wire transfers nor international money transfers. I suggested Paypal in installments but they don't seem to want to do this.

What method is most cost effective for a total amount transferred of around $2K? I do have one savings account tied to my banking that I use exclusively for Paypal and other e-payment that I could use for incoming funds. The main thing I'm concerned about is vulnerability of funds being withdrawn.
WannabeTycoon Send private email
Wednesday, May 15, 2013
 
 
Generally, you need to provide them with your SWIFT code and/or IBAN number so that they can get their bank to send you the funds.

You can ask your bank for these details, although they are probably printed on your statements.

As for withdrawing of funds, I've noticed that people in the USA seem quite wary of this risk, while in the EU, people happily print their bank account details on their invoices, as it facilitates early electronic payment. You should talk to your bank about this, as they will be able to advise you what procedures to follow.
Scorpio Send private email
Wednesday, May 15, 2013
 
 
Thanks - asking my own bank is obvious-man level stuff and you reminded me that I should be doing that.

In the US we have a system for inter bank transfers called ACH (automated clearing house) which requires that the bank initiating the transfer know the other bank's routing number and the account number of the account at the other bank. The risk here is that transfers can always be initiated in either direction.
WannabeTycoon Send private email
Wednesday, May 15, 2013
 
 
As Scorpio says, my own company (based in Europe) happily prints SWIFT and IBAN numbers on invoices. Wire transfers are somewhat manual, but otherwise it's very simple.
Joannes Vermorel - Lokad Sales Forecasting Send private email
Wednesday, May 15, 2013
 
 
Just spoke with my bank, and got their SWIFT code. I'll use an account with no overdraft protection that I reserve just for Paypal anyway.

The fee for each inbound payment is $17.50 per. For an outgoing international payment is $110 per.
WannabeTycoon Send private email
Wednesday, May 15, 2013
 
 
That inbound looks about right, but I'm surprised about how much an outbound payment is.  Make sure you're using a big bank (one of those too large to fail).  The reason is smaller regional banks usually don't have an IBAN/SWIFT number, so they ultimately just send to a big bank to send/receive payments.  And they each add fees along the way.  In my case, I have an account with a big bank for receiving wire transfers and nothing else.
Doug Send private email
Wednesday, May 15, 2013
 
 
Thanks for the interesting data point on fees. I remember it being so expensive that Western Union was generally cheaper.

But if you're in France doing a bank transfer to Germany, the fees might be nothing at all, or so small as to make it not a problem.
Scott Send private email
Wednesday, May 15, 2013
 
 
>For an outgoing international payment is $110 per.

Really?! That's criminal.
Andy Brice Send private email
Wednesday, May 15, 2013
 
 
I recently heard about this service, which could potentially save you some money. But you'll have to get your customer to use it, which will also save them some money:

 http://transferwise.com
James Gassaway Send private email
Wednesday, May 15, 2013
 
 
"For an outgoing international payment is $110 per."

I bet they gouge you on the FX rate too.
Scorpio Send private email
Thursday, May 16, 2013
 
 
But when you tell people about Bitcoin they declare it's 'got no value'...

bitcoin.org

multibit.org




AC
Reluctantlyregistered Send private email
Thursday, May 16, 2013
 
 
Is the idea you're promoting that someone in a country with no access to credit cards, paypal accounts or western union offices will find it easier and more convenient to trade their local currency for bitcoin credits, and the company he is seeking to purchase from will be happy to receive them?
Scott Send private email
Thursday, May 16, 2013
 
 
With more acceptance, yeah. Right now such people are using telephone credit as digital cash but that only works locally.

However the OP didn't say they don't have access to such things, simply that they're not keen on Paypal and he's not keen on the fees involved in the usual method of international transfers.

Bitcoin isn't perfect but fees of 0.001% are hard to argue with.




AC
Reluctantlyregistered Send private email
Thursday, May 16, 2013
 
 
The issue with bitcoin is that it varies wildly against other currencies in a way that makes it useless for business, at least until you can hedge like other currencies to mitigate your FX risks.

I find bitcoin fascinating as a concept, but can't justify looking at it as a serious settlement currency. For example, hire someone and offer to pay the in bitcoins, then watch them try to get a mortgage.

I'm no fan of debased fiat paper either, but at least you can know to within 10% what it'll be worth in a month.
Scorpio Send private email
Thursday, May 16, 2013
 
 
Yeah, it will be current value - 10%

HAHAHAHA
Bring back anon Send private email
Thursday, May 16, 2013
 
 
AC, you've clearly stepped over into ideology with the Bitcoin promoting.

There is no freaking way I'd use Bitcoin for anything except nominal untraceable payments for porn sites... its intended purpose.
WannabeTycoon Send private email
Thursday, May 16, 2013
 
 
"untraceable payments for porn sites"
And how is the pimp with the little stick going to pay for weed with Bitcoins?
Howard Ness Send private email
Thursday, May 16, 2013
 
 
@Howard:  Because that's the *other* use for bitcoins: http://en.wikipedia.org/wiki/Silk_Road_(marketplace)
Richie Hindle Send private email
Friday, May 17, 2013
 
 
Yes, I've always been ideologically opposed to fiat currencies :)

You can do a lot more with BTC than porn or drugs, for example Gyft now allows you to use BTC to buy gift vouchers and immediately buy products from over 50,000 retailers.

With Bitpay (.com) you never need to hold BTC for more than a day, so volatility isn't really an issue - and the price has been amazingly stable for the last couple of weeks anyhow :)

http://bitcoincharts.com/charts/mtgoxUSD#rg60ztgCzm1g10zm2g25

Thing is, bitcoin is still relatively new, less than 5 years old and the support services around it are... well crap, basically.

Bitcoin may die on the vine. Or it could be the next big thing, as big as the internet itself...

Here we have some professionals, quite capable of the know-how, skills and funding to create top-notch SaaS offerings. If I can encourage some to take the plunge...?

Win-win!



AC
Reluctantlyregistered Send private email
Friday, May 17, 2013
 
 
Lose lose. Another thing to f*** with that doesn't make me any money. Have fun with your cause. I'm in business.
WannabeTycoon Send private email
Friday, May 17, 2013
 
 

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