Best Ways to Get Paid by a Client Overseas Online
There are plenty of ways to be paid by a client overseas. It is fair to say that the best companies to use are hard to find. Which money-transfer companies are considered to be the best seems to change every few years. Here are the companies that are currently the best and most popular.
PayPal
PayPal has more than 87 million active accounts. People use PayPal for their business, shopping, personal needs, and for paying-for and receiving money-for freelance work. A wallet may hold 24 currencies from around the world. PayPal is very easy to use, and is very user friendly. Setting up a PayPal account is free, and it will only require an e-mail or phone number to gain access to your account.
You will have to link your credit card (if you have one), or your bank account, to your PayPal account if you are looking to fund online transactions. This is also true if you wish to make withdrawals where your money is transferred to your bank account. This process normally happens straight away (within 2 hours).
When you are sending the payment overseas, your currency conversion calculation will automatically be updated. You will see all the exchange rates and fees once you are ready to make the payment. If you are receiving money, then the fees are 2.9% and $0.30 per receipt. If you receive money in another currency, then you will have to convert your currency, which will cost you money because the PayPal conversion rates are not very good. If you are being paid by a client overseas, you should try to convince your client to pay you in your own currency so that he or she has to eat the poor conversion rate.
Pros
• Clients and customers may already be familiar with PayPal
• It is easy to use and setup
• Your customers don’t need a PayPal account to pay you
• You can use PayPal to make recurring payments
• You can use your Credit or Debit card to fund your account
• Transfers are instant, even when going overseas
• You can transfer and receive using only a phone number or email address
• There is an app, or you may use it online
• Non-Account holders may sign in as guests or pay as guests
• You can send invoices and money requests
• Paypal’s transaction lists may be used like bank statement when filling out your taxes
• Withdrawals are usually very quick
• Many websites already have PayPal installed which means you don’t always have to withdraw
• PayPal is internationally renown for being very safe and secure
• There are buyer, sender, seller, and receiver protections
Cons
• There are big fees for charge-backs
• The fee system takes money from the receiver rather than the sender
• It can take 4 business days for uploaded funds to leave your bank account
• Abuse of your account can lead to months of red tape trying to reopen your account
• It can be difficult to contact PayPal’s customer services
• Currency exchange rates are less-than perfect (you usually get 2-3c less than per dollar than the market rate)
Transferwise (Money Sending Service)
Transferwise sends money between bank accounts, and it is able to transfer money overseas as well as nationally. Transferwise will guarantee that you will know how much the recipient will receive and exactly how much you are sending. They do this by showing you your exchange rate and any fees prior to the transfer. Unlike most other transfer services (except CurrencyFair), Transferwise gives you the market rate for your exchanges, which means the rate you get is the rate you see/read on Google, Bing and xe.com. Most payment options do not have any additional fees attached, unless you use your credit card, which will cost you between 0.3% and 1.5% of the uploaded funds.
Pros
• It is simple and very easy to use
• They have a great track record for completed transfers and timely transfers
• Customer service is always quick to help
• Offers market rates with no rate skimming or additional exchange levies
• All High Street and US banks are unable to compete with Transferwise’s rates and fees
• Transferwise has bank-level security
• Debit and credit cards are accepted
• The pricing system is clear, easy-to-understand, and honest
• There is a free currency-price-alerts tool that you can use without signing up
Cons
• Sometimes their security checks will slow your transfers
• Some of the customer support staff are abrupt
• There are no discounts for higher volumes
• Transfers are not as fast as PayPal or Skrill
• It holds many currencies but which you are able to withdraw
Transferwise (Borderless Account)
A Borderless account is a multi-currency account provided by Transferwise. It is free to set up, and it may hold 28 currencies. In the Eurozone, Australia, UK and in the USA, you will enjoy low fees when sending money overseas. There is a minimum $3 fee for transfers. There is 0.7% fee when the amount is over the initial of $5,000, and you will get a fee of 1% when you transfer up to $5,000.
The Transferwise Borderless account works like a bank account in numerous countries. It is just like having an online bank account in whatever country you happen to be in. You will be able to use your Borderless debit card in the country you are currently stood in, and the card will both work and will not penalize you with extra fees. You may use your debit card in shops, restaurants, and to pay for services.
If you have money transferred to your Borderless account from overseas, then you avoid high fees, and you will be able to use the money with your Borderless debit card without needing to withdraw your money to your local bank account. This means you may travel the world using your Borderless account without having to move your money around, and you may be paid into your Borderless account and cut out the process of withdrawing to your bank account because it is already in your bank account. Here are the Transferwise payment-network systems that are used in these located regions:
Poli (Australia)
SEPA Direct debit (Germany)
ACH debit (US)
Trustly (Finland , Baltics)
iDeal (Netherlands)
Boleto (Brazil)
Sofort (Germany, Austria, Spain, Belgium, Italy, Netherlands,)
Direct debit (Canada)
Pros
• You don’t have to pay any subscriptions or maintenance fees
• You get free ATM withdrawals up to limit of $200 a month
• It is just like having an online bank account in the country you are currently stood in
• Only pay a small fee when converting currency
• Opening a Borderless account is free
• You do not have to pay multi-currency account fees
• No fee to use your Debit card when viewing your balance
• You may hold your money and wait for currency prices to tip in your favor
• There are 28 currencies you may load into your accounts
• Your debit card will be accepted in any store that MasterCard is accepted in
Cons
• There is a small fee when using Borderless to make payments to other accounts
• You don’t get any interest on your balance with a Borderless account
• You may have to wait 2-3 working days for a minority of transfers to complete
• MasterCards are widely accepted, but not as much as Visa
CurrencyFair
CurrencyFair was founded in 2010. It is a foreign exchange marketplace and transfer company. CurrencyFair have offices in the UK, Ireland, and in Australia. It transfers money all around the world, but they only allow customers from Australia, EU countries, and the EU countries.
We have covered CurrencyFair before on this website because it is one of the few currency exchange companies that is honest, open, fair and transparent. Only Transferwise and CurrencyFair are this open and transparent. They show you exactly how much you are uploading, exactly how much you are sending, and exactly how much you are going to be charged in fees. There are no hidden fees, no rate skimming, and no extra charges. The quotes and estimates you see at the start are exactly what you pay in the end (the same is true of both Transferwise and CurrencyFair). Just like with Transfewise, the exchange rate you get is the market rate. This means you get the same rate that you see on Google, Bing and XE.com.
CurrencyFair US works for non-US residents. This means that you may receive and send money in US dollars using the CurrencyFair.com website, but if you live in the USA, then you are unable to set up an account with CurrencyFair. Alternatives for US citizens includes the very similar TransferWise. Plus, there are other transfer companies such as the ones listed in this article, plus OFX.com, World First and HiFX.
Pros
• Offers market rate currency conversion rates
• CurrencyFair has very low fees
• The online platform is very secure and safe
• Support staff members are very consciousnesses when dealing with you
• Everything you need to know about the rates and fees are all online for anybody to see
• Using the app will make transferring money easier
• CurrencyFair is faster than many of its transfer-company competitors
• It is cheaper than any bank transfer services
Cons
• If you transfer small amounts you will be paying a lot more than if you transferred a larger amount
• The customer service needs to be quicker
• US citizens are unable to set up an account
MoneyGram
MoneyGram is a money-sending-and-receiving service that is available online 24/7, it is available in 200 countries, and there are roughly 38,000 MoneyGram stores/agents worldwide. Setting up your account is fairly simple, and you may have your account verified right away at one of their physical locations if you take all necessary identification/ documents.
You can pay your personal bills using your MoneyGram account, and you may pay them using your credit card or your debit card. MoneyGram may also be used to pay your rent, auto bills, credit cards, utilities, and your mortgage(s). It can estimate your fees for you before you make your transfer/payment. You may choose to send money online or send money from a MoneyGram location.
MoneyGram offers payment/transfer tracking, but you won’t be able to get the money back if you send it to the wrong person, or if a scammer has defrauded you. You may track your payments/transfers with the use of the MoneyGram payment reference and your legal last name. MoneyGram won’t let you send a lot of money all at once, and even though you are able to transfer money to other individuals outside of the USA, you may not be able to pay foreign bills with MoneyGram. If you like to travel a lot, you can use MoneyGram to send money back home, and the fees are above average, but they are not terrible. Plus, the service is very convenient and hassle-free.
Pros
• MoneyGram offers instant transfers
• If you are a frequent user, you will be able to earn fee discounts
• MoneyGram has 38,000 locations around the world
• You can send money via MoneyGram using their 24/7 phone or internet service
• MoneyGram offers a Bill Pay service for US citizens
• You are able to send money from your bank account to a MoneyGram location
• The recipient may pick up money in cash
• You may deposit/send money using cash at a physical location
• There are MoneyGram agent locations in every major city in 200 countries
Cons
• The fees are above average
• MoneyGram transfers may not be reversed
• You cannot use Bill Pay outside of the United States
• The MoneyGram website is lacking information and instructions
• They skim off the exchange rate and they charge you fees
Western Union
Western Union is a company that will let you send money to most countries in the world. It has physical locations and is available online. You will be able to send money by transfer to pay for day-to-day bills, for large purchases, and you may use Western Union as a means to transfer and receive money from other people.
It is even possible to send money to an inmate who is in prison. You will need to fill out a simple form with the inmates first name, number, and last name, and you can to this on the Western Union website. You can send the inmate up to $300 per transfer.
If you make credit card payments, then there are extra fees. It is best to use your debit card when you send money, so you may avoid the credit card fee. Western Union will protect you from fraud when you sign up with them as it has its own consumer protection where you can file a complaint for error resolution. However, Western Union will not be held responsible if they lose your money, and they cannot reverse a transfer if you transfer money to a fraudster.
The person paying you may save your information into his or her account so that it is quicker and easier to pay you next time. If you send money, you may track your transfer, which also allows you to see when the recipient picked up the money or had the money deposited into his or her bank account.
Western Union allows you to use prepaid cards like Mastercard, NetSpend and and VISA cards. If you sign up with Western Union, they also offer things such as WU rewards, so that whenever you send a $1, you will earn 1 WU points. Once you have a great many points, you may redeem the points to get service fee discounts. You may also redeem points to support different causes around the world. The website is simple to use, it even has an agent-locator function on the site that allows you to find your nearest agent.
Pros
• Very easy to send money and set up payment transfers
• You are able to use the app to send and receive payments
• Have your payment sent directly to your bank account
• You may register with prepaid cards
• Your client may pay you and you may pick it up in cash
• It has lots of customer service options
• You can pick up the cash in a WU agent in almost every major city in the world
• Can send money using your credit or debit card
• It has a price estimator on the website
• There is some protection from fraud
Cons
• Despite the fraud protection policy, WU doesn’t accept responsibilities for losses
• Services and funds can be delayed from time to time for security reasons
• You only have the choice of Spanish or English as a language on the Western Union site
• There is a fee to send money using your credit card
• Exchange rates are higher than most money transfer companies
• As a US citizen, you will be banned for life if you transfer the money to any gaming sites
