Accepting Euros?

[CDX50]

Hi All,

Some advice needed on accepting Euros. Was wondering how others deal with it.

Do you bank the Euros and keep them as such or convert them to GBP straight away? I can get a Euro account but it's pretty inflexible and from what I can tell subject to the bank's exchange rate if they want to be paid out.

What other scenarios are there?

Thanks

 

[Lancelot]

There are several scenarios but the information that you presented in too general to be able to tell you which one is the most suitable.

If it is rather one-off thing, then simply ask them payer to pay into your sterling bank account and you will receive the amount in sterling. You will have to recognise the exchange gain or loss when you reconcile your bank statement.

If you deal regularly in euros it may be worth opening a bank account in euros, hedging, etc.

 

[CDX50]

Apologies, I did lack detail.

I have an online retail outlet and I supply quite a bit to Europe. I feel European customers would buy more if I could also accept payment in Euros.

The negatives for me are keeping track of the exchange rate to ensure I don't lose out and also the bigger headache with doing company accounts.

 

[andygambles]

We accept in euros via PayPal. Then convert to GBP when needed before withdrawing to GBP account.

Strangely most of our European customers choose to pay in USD. Might be the type of customer base though.

 

[tony84]

I have a merchant account with AIB.

We accept credit card payments online using them and Paypal. The exchange rate is governed by what they stipulate.

Im not sure there should be a major issue, we never had any it just all worked and we didnt have a professional setting up the website - i did it

 

[CDX50]

I have a merchant account with AIB.

We accept credit card payments online using them and Paypal. The exchange rate is governed by what they stipulate.

Im not sure there should be a major issue, we never had any it just all worked and we didnt have a professional setting up the website - i did it

Ok, so are you saying they convert it to GBP for you straight away? Or that they stipulate the exchange rate on the website?

 

[andygambles]

Ok, so are you saying they convert it to GBP for you straight away? Or that they stipulate the exchange rate on the website?

With PayPal you have a Euro balance. When you want you exchange it to GBP but they give you the rate. Usually Market rate with a 2% spread. Advantage is you exchange in bulk rather than per transaction.

 

[tony84]

visa, mastercard and the like decide on the exchange rate but its usually based on the actual exchange rate.

 

[mr. mischief]

Depending on your deal size and volume, a foreign currency broker could be a good bet. I mostly deal in GBP USD, imagine Euro GBP is similar.

High street bank typically 25 or 30 GBP flat fee, but what is worse if the middle rate is 16394 they will make a massive profit by going 16244 to 16544.

Paypal and Google can be even worse on conversions.

A currency broker will typically not have any flat fee and be going 16334 to 16454, also offer added value services to higher volume customers.

One client has saved £15k to £20k per year by making this switch.