How to reduce transaction costs when getting paid remotely?
This is a common concern of people who are getting paid internationally for the first time.
In this post, I would like to list the options available, from best to worst.
1) Transferwise - This is the best way to get paid internationally. You only lose around 0.7% of your actual amount for a large enough transaction ($1000+). So ask your client to use it if possible.
2) Wire to your EEFC account - The conversion rates here are comparable to Transferwise, which is around 0.7%. But it is hard to set up. I recommended you only do this if you are receiving consistent international income.
3) Payoneer - With this service, you lose around 1.5% of ANY transaction. Worse than Transferwise but still quite good. Use this service if you can't get your client to use Transferwise.
4) Xoom - Xoom has similar transaction costs to Payoneer but it takes extra charges on small tickets. Use it if you can't use Payoneer.
5) Wire to your local bank account - With a direct wire, you can get away with 2.5%-1.6% currency conversion costs based on your ticket size. Prefer private banks like ICICI and HDFC if possible.
6) Paypal - I didn't even bother looking at transaction costs for Paypal. At this point, it's common knowledge that it's bad. I will never use it until I have to.
7) Stripe - Stripe charges 4.3% + 2% which is a lot. But this makes sense as it was not meant for receiving payments but payment integrations. Again, avoid if possible.
SDE 2 @ Intuit | Ex Google | Writer | Open Source | Cloud
3 年I found Payoneer is the most hassle free way. Better than Paypal
Frontend @Razorpay
3 年Why not govt banks over private, they have lower inward remittance and conversion
WorkMotion is your HR-Tech platform for permanent work from abroad
3 年Thanks for sharing this. Really insightful.
Building PhoenixHQ.space | Sr Tech Architect @ReflectiveAI | Tech PM @Turing | Developer Relations | Founder and Head @Cogn Appl Research | GoogleAI ExploreML Facilitator | MetaAI scholar | Operator | Consultant
3 年Avi Aryan Is there any blog where all your articles are listed? I remember you saying you were making one.
Senior Frontend Developer | Building the web using JavaScript & Vue.js
3 年One thing to note that apart from wire transfers, all these modes transfer money to your bank account in INR. It’s important to know this in case you have a GSTN and issue GST invoices, 18% tax is liable. However, if you receive remittance in Foreign Exchange, government provides a exemption. Payoneer provides FIRC which can be used as well.