International Bank Transfer - U.S. to U.K.

Discussion in 'International Business' started by Mr. R, Sep 4, 2019.

  1. Mr. R

    Mr. R UKBF Contributor Free Member

    51 3
    Hey!

    Can I bill customers in the U.S. for work I have done?

    i.e. If I send them the details of my UK bank (account number and sort code) on an invoice, will they be able to pay the same way that a normal BACS would work from their (presumably) U.S. based account?

    Is all banking compatible in this way? What are the tax implications? Is the same all over the world?
     
    Posted: Sep 4, 2019 By: Mr. R Member since: Jan 14, 2009
    #1
  2. DontAsk

    DontAsk UKBF Ace Free Member

    1,517 225
    A lot of US banks are still in the Stone age. A US customer tried to pay me by electronic banking and the bank wanted to issue a cheque! It took him 3 months to sort things out. Watch out for charges and conversions fess and who pays them. I have a $ Transferwise account which gives very good exchange rate and no fee.

    Alternatively get them to pay by PayPal if you can stand the fees.
     
    Posted: Sep 4, 2019 By: DontAsk Member since: Jan 7, 2015
    #2
  3. Kevin McCabe

    Kevin McCabe UKBF Contributor Free Member

    58 4
    Yes. As long as you have an IBAN number and a SWIFT code you can do it. My lawyer is based in the US and I am based in London. It works fine.
     
    Posted: Sep 18, 2019 By: Kevin McCabe Member since: Jun 1, 2019
    #3
  4. Kevin McCabe

    Kevin McCabe UKBF Contributor Free Member

    58 4
    I forgot to add, you can use virtual bank accounts, Payoneer or just have an online payment gateway.
     
    Posted: Sep 18, 2019 By: Kevin McCabe Member since: Jun 1, 2019
    #4
  5. Ray272

    Ray272 UKBF Regular Free Member

    303 40
    Some painful hidden charges if they pay USD to GBP bank.

    Get them to adopt transferwise for payment and the payments will arrive minus the pain.
     
    Posted: Sep 25, 2019 By: Ray272 Member since: Jul 5, 2017
    #5
  6. Kevin McCabe

    Kevin McCabe UKBF Contributor Free Member

    58 4
    But with TrasnferWise you still need to pay transfer charges. Plus their exchange rates aren't the best. This is another hidden way they are making money.
     
    Posted: Sep 25, 2019 By: Kevin McCabe Member since: Jun 1, 2019
    #6
  7. The Byre

    The Byre UKBF Legend Full Member

    10,088 4,126
    This!

    Alternatively, I have been taking US dollar cheques since 1980 without any problem, paying them into a dollar account in Luxembourg.
     
    Posted: Sep 25, 2019 By: The Byre Member since: Aug 13, 2013
    #7
  8. Kevin McCabe

    Kevin McCabe UKBF Contributor Free Member

    58 4
    Smart
     
    Posted: Sep 25, 2019 By: Kevin McCabe Member since: Jun 1, 2019
    #8
  9. Ray272

    Ray272 UKBF Regular Free Member

    303 40
    The rates are extremely close to the median rate you see on xe so it's a lot more transparent than a banks. Between using a bank and TW I have saved over £5000 in fees since using TW.
     
    Posted: Sep 26, 2019 By: Ray272 Member since: Jul 5, 2017
    #9
  10. Kevin McCabe

    Kevin McCabe UKBF Contributor Free Member

    58 4
    Bank are criminal. Definitely I would take anything apart from a bank.

    I topprd-up my account somewhere online for £0.60 and my UK bank charged me £1.50 for "international debit fee" which is ridiculous.
     
    Posted: Sep 26, 2019 By: Kevin McCabe Member since: Jun 1, 2019
    #10
  11. gpietersz

    gpietersz UKBF Ace Full Member

    1,305 299
    You can, in general, transfer from any bank account anywhere to anywhere else. The major exceptions would 1) countries subject to US (because most banks follow US law) or UK sanctions and 2) countries with exchange controls (fewer than there used to be, and mostly on transfers out of the country).

    In general, banks are a lot more expensive than transfer services so I would use something else. US tends to be particular expensive for anything international.

    I use a Transferwise multi-currency account too. To them it looks like a dollar account in the US which is the advantage as its still a normal transfer to them.
     
    Posted: Oct 18, 2019 By: gpietersz Member since: Sep 10, 2019
    #11
  12. The Byre

    The Byre UKBF Legend Full Member

    10,088 4,126
    If you are dealing with lots of fiddly little payments in dollars and Euros and even Pounds and you have payments coming in and payments going out, it is normal for a company to not seek to exchange these payments but to just pay in and pay to and from pound, dollar and Euro accounts as needs arise.

    For example - if we need widgets from Germany to be sent to our UK address, we order in the usual way and pay directly from our German Euro account. If we sell to Germany, we take the money in Euros to our German Euro account.

    Obviously and over time, imbalances arise and cash for purchases needs to be released, so then and only then do we transfer larger lump sums.

    UK banks are deliberately lethargic and old fashioned as that earns them considerable sums of money. And to be honest, each and every transaction has a marginal cost, albeit a small one, so it is reasonable for them to levy a single set fee when converting Euros to pounds or dollars.

    If you are dealing with international clients who quite naturally expect to be able to pay in their own currency and not in something weird that features pictures of Mister Bun the Baker, it is necessary to have international banking facilities.

    And if your company is accumulating cash that will be sitting still for over a year and you are looking for a safe haven in stormy times, a Swiss Franc account is a good idea.
     
    Posted: Oct 18, 2019 By: The Byre Member since: Aug 13, 2013
    #12
  13. Venturex Partners

    Venturex Partners UKBF Newcomer Free Member

    6 0
    Mr R,

    we have receiving bank accounts in the US, linked to your E-Wallet platform, for you to directly receive USD from customers out there. With the currency now within our payment ecosystem, it can be instantly exchanged into a currency of your choice, held within your E-Wallet, withdrawn to a bank account of your choice, or sent on to suppliers/distributors.

    Far more competitive rates than high street banks, typically fee free, U.K. regulated service, SWIFT GPI for extremely fast payments.

    Hope that helps.
     
    Posted: Nov 11, 2019 By: Venturex Partners Member since: Nov 11, 2019
    #13
  14. Andrewmattias

    Andrewmattias UKBF Newcomer Free Member

    4 0
    Do not use transferwise, read their bad reviews online. I had my moneys tolen by them and so numerous other people around the earth. Beaware.
     
    Posted: Nov 21, 2019 By: Andrewmattias Member since: Nov 21, 2019
    #14
  15. Bobbie Bean

    Bobbie Bean UKBF Newcomer Free Member

    4 0
    Depending on who you bank with and how often you think you will be doing international business; I would suggest opening up a currency deposit account in the currency you need. Whilst I do appreciate using smaller services like TransferWise, it's a better look to have all your payments under one banking roof. Makes it easier for assess. Each deposit account will come with it's own IBAN.
     
    Posted: Feb 19, 2020 By: Bobbie Bean Member since: Feb 13, 2020
    #15
  16. DontAsk

    DontAsk UKBF Ace Free Member

    1,517 225
    This poster joined the forum, made four anti-TransferWise posts and hasn't been heard of since.

    TransferWise offer an excellent service in my experience with fees that are very hard to beat, especially when compared to depositing USD in a high street UK bank.
     
    Posted: Feb 19, 2020 By: DontAsk Member since: Jan 7, 2015
    #16
  17. Ray272

    Ray272 UKBF Regular Free Member

    303 40
    Not even sure 4 anti TW wise poster realises TW can deposit into other currency accounts besides the domestic currency. Maybe not everywhere but TW deposit USD into our USD currency account here in the UK.
     
    Posted: Feb 19, 2020 By: Ray272 Member since: Jul 5, 2017
    #17
  18. gpietersz

    gpietersz UKBF Ace Full Member

    1,305 299
    Four possibly libellous anti-transfer wise posts. I am surprised mods have not removed them. If he had a real case he could take it to the FCA or Financial Services Ombudsman.

    @Ray272, exactly. My US clients do a local transfer to what looks to them like an account in the US, and I can then convert at TW rates and do a local transfer out from my GPB account.
     
    Posted: Feb 19, 2020 By: gpietersz Member since: Sep 10, 2019
    #18