International Payment Methods

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New options for transferring money internationally for payments to/from global customers (whether you are the client or the vendor) and how to minimize fees and exchange rate costs in doing so. Helps you assess your own unique needs for this task and how to create a strategic and money-saving approach to this task.

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International Payment Methods

  1. 1. Leveraging Payment Methods to Your Benefit ATA 51st Annual Conference Denver, CO USA October 2010 Eve Lindemuth Bodeux Principal © Eve Bodeux 2010 ~ all rights reserved
  2. 2. Topics for Discussion • Currency Exchange Rates • Payment Methods • Assessing your specific needs © Eve Bodeux 2010 ~ all rights reserved
  3. 3. Currency • Decide which currencies you accept • Exchange rates vary per method • Exchange rates vs fees (!!!!!) • You want to control transaction timing • Currency-specific bank accounts © Eve Bodeux 2010 ~ all rights reserved
  4. 4. Slide 4 Payment Methods • Payment methods – Check – Direct deposit (domestic and international ACH or EFT) – Wire transfer – Paypal and similar – Travelex, AMEX FX, XE, currencyonline… – Prepaid debit cards – Credit cards
  5. 5. Checks • Common for US domestic payments • Can use to pay overseas (?) • Online bank bill pay • Even domestically, there are alternatives • Slow and high risk.
  6. 6. Direct deposit (ACH/EFT) • ACH – Automatic Clearing House • EFT – Electronic Funds Transfer • Otherwise known as direct deposit • Consider currency • Consider fees • Domestic or foreign bank receiving funds? • 1-5 days and low risk. Slide 6
  7. 7. Wire transfers • Expensive. • High fees to client. • High fees to you. • Fees that no one claims (!) • Unfavorable exchange rates. Slide 7
  8. 8. Paypal • Not a bank – facilitates intl transactions • You do not exchange rate control when you send or receive funds • Exchange rate is not good (very bad) • Per transaction fees + % of sale possible • Low risk (mostly) • Rapid © Eve Bodeux 2010 ~ all rights reserved
  9. 9. Travelex, AMEX FX, XE, etc. • Not a bank - facilitates int’l transactions. • Low currency exchange rates. • Low(er) fees. • USD to USD ~ EUR to USD ~ USD to EUR or other currency combinations • american.express.com/ip • xe.com • Travelex.com • currencyonline.comn
  10. 10. Prepaid Debit Cards – Prepaid debit cards – International payments to vendors by prepaid MasterCard (or other) – Convenient and inconvenient – Internationally focused (vendors and clients) – High fees (up front, ATM withdrawal, non- usage) – Low risk (it’s prepaid) © Eve Bodeux 2010 ~ all rights reserved
  11. 11. Credit Cards – Accepting credit cards for payment with certain client types – merchant account – Minimizes “bounced check risk” – can verify fund up front / pre-authorize – Payment in advance – Think about making payment due in YOUR currency – Can do online-only processing (less fees) – Monthly fee, percentage transaction fee, batch fee – Domestic & international? – Merchant service providers: Costco, many others © Eve Bodeux 2010 ~ all rights reserved
  12. 12. Customize your payment method strategy • Types of clients • Amount of funds • EUR versus USD versus other currency • Payment terms (when payment received) • Who are you customers? • Be sure to consider accounting/tax issues
  13. 13. Resources Payment Methods Podcast http://speakingoftranslation.com/2009/10/09/episode5/ Great article on best practices for invoicing clients: http://www.smashingmagazine.com/2009/11/05/invoice-like- a-pro/ Dillon Slattery’s article on getting paid across border: http://www.dillonslattery.com/2009/11/getting-paid-across- borders.html Links at www.bodeuxinternational.com/ata51 © Eve Bodeux 2010 ~ all rights reserved
  14. 14. Thank you! Eve Lindemuth Bodeux go-global@bodeuxinternational.com eve@adventuretranslators.com bodeuxinternational.com adventuretranslators.com speakingoftranslation.com © Eve Bodeux 2010 ~ all rights reserved

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