Receiving Payment in USD

CheapBrah on 27/10/2015 - 05:12
Last edited 27/10/2015 - 05:51

I am going to be selling an item for around USD1000 to an international buyer, I'm currently exploring ways of receiving this money in AUD with the least fees.

Obviously paypal is the first option that comes to mind, the money may come in as a mass payment so no fee would be charged to me, but even if that's the case the currency conversion rate sucks.

International wire transfer is an option but that costs money for the sender so it would still cost me at the end of the day, which makes it not worthwhile. Plus I don't know what fees I'd be charged by my bank for receiving a payment in USD.

Any other options?

Financial

Comments

  • gringo on 27/10/2015 - 05:48

    I'm assuming you've considered keeping it as USD in paypal for next time you buy something?

    • CheapBrah on 27/10/2015 - 05:51

      It's an option, but I'm going overseas soon (not to the US) and would need the money.

  • RockyRaccoon on 27/10/2015 - 10:22
    +2

    Ebay sales in international currency are fraught with danger - scams etc. Dont be too cheap with how you handle the money or you may end up with nothing and wear the cost of shipping

    • CheapBrah on 27/10/2015 - 18:49

      I'll be using an escrow service, not ebay. Which limits my options of how to get paid anyway. Ideally I was hoping there is some sort of 'virtual US bank account' thing where someone can send you a US bank transfer for free to a bank account number belonging to the provider of this 'virtual account' and then the provider of this virtual account send you AUD after taking a fee. Would be an interesting business model if possible under the laws of each country.

      Right now my best bet seems to be either taking paypal's crap conversion rate, or paying an extra USD30-40 for an international wire transfer (and any relevant fees from my bank which I have to check).

      • gringo on 28/10/2015 - 19:05

        Problem is this is very close to how laundering money works. If they are taking that sort of risk they want to be compensated.

        Btw: Bitgold actually solves some of these problems - but they aren't cleared to do payments wihin the US yet (launched in europe tho), & you will still need to pay the incoming side of a wire transfer as their mastercard isnt launched yet.

        In theory any currency exchange thru them could be done for 2% however.

  • [Deactivated] on 27/10/2015 - 12:52

    I've used middlemen recently to bring money into the country without getting hit by bank fees and shoddy exchange rates. The way it works is the middleman has a partner or family in the other country (USA in your case) who can meet with your buyer. You get on the phone with your buyer, the middleman gets on the phone with his partner at the same time.

    Buyer hands the USD to the middleman's partner, who confirms receipt to the middleman. Middleman hands you AUD for the amount you agreed - which is normally better rate than the banks. You then confirm with the buyer you received the money, and send the receipt email or whatever he needs.

    I found this method out from my SE Asian partner, turns out it is a fairly common way for SE Asian students to bring money in to the country for cars/rent/uni fees, while avoiding legal barriers in the country of origin. For example, you need to request permission from the Vietnamese government to do a bank transfer outside of Vietnam, cash you take out can be confiscated by customs as well… I have no idea of the legality in Australia, so use at your own risk.

  • CheapBrah on 27/10/2015 - 18:51

    It just occurred to me, with paypal you can choose to be charged in foreign currency when buying something rather than them converting it, which is good if your credit/debit card doesn't charge international transaction and conversion fees.

    Is it possible to withdraw to your Australian bank account in USD through paypal? Might be worth checking what fees my bank would charge for receiving a USD payment if it is possible to do through paypal.

  • CheapBrah on 27/10/2015 - 18:57

    I've also seen this http://www.payoneer.com/

    Which is kind of what I was looking for, it apparently lets you accept US based bank transfers for a 1% fee which is reasonable. And then you can withdraw to your local bank account. I don't know about the withdrawal fee, if any, and more importantly their conversion rate as it could be like paypal where they take a large cut.

    Anyone used it before?

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