As a seller of products and services whose business is spread at a global level, you may have to deal with numerous processes in receiving money from customers in different currencies. Rather than trading in individual currencies and the attendant complications which arise, there are a few simple methods which work irrespective of country or currency. To learn how to receive money from your customers based in the US, read through the various methods described in brief below.
PayPal and similar services. Several proprietary payment systems such as PayPal make it simple to send and receive money to different customers across the globe. Registration with such services is a simple process and you have various options to send, receive and withdraw money from your account. Invoices can be created for products and services and then sent to the buyer's mail ID with the amount due, description of services, applicable taxes, etc. Monies received into your account attract a small service fee by PayPal. There is also a facility for sending reminders to customers who've not yet paid their invoices. Withdrawing money from your own account can be done by transferring money into a bank account designated by you, by check or by transferring an amount to your credit card. You can create multiple accounts for different currencies or maintain a single US dollar account and convert other currencies into dollars if you receive payments in such currencies.
Credit/debit card merchant tie-ups. Plastic is a convenient way of paying for goods and services and accepted all over the world. As a seller, you can tie-up with any of the card accepting franchises such as MasterCard, Visa or American Express. Customers can use their credit or debit cards to pay for goods and services and the franchises or issuing banks and financial institutions with which you have an agreement will pay you your earned money minus small service fees. Electronic tie-ups and systems automatically credit amounts to your account once the payment is approved by the buyer's card service provider and you can print out a record of previous day's transactions to reconcile your accounts.
Escrow services. Using escrow services guarantees security for both buyers and sellers. The buyer deposits money into an escrow account and can release payments once the goods or services are received and are in order. As a seller, you have a guarantee of receiving payment upon fulfilling your obligations. The company managing the escrow service monitors the transactions and upon successful completion release payment from the escrow account to you. A small downside of using escrow services is the time taken to receiving money.
Online bank transfers. This is similar to domestic transfers made into our out of your account, except that it takes about 3-5 days to complete and your country's foreign currency regulations must allow you to accept payments in other currencies. This can be worked out by maintaining a separate foreign currency account with the approval of the relevant authorities and your customers can transfer money from their accounts into this account.
Checks/COD/International Money orders. These are a few other ways of receiving money from customers abroad, the disadvantages of using such services is the time taken, lack of guarantee or security and the inconvenience in preparing and encashing checks and money orders or the complications of receiving cash.
Western Union/Money gram. Similar to services like PayPal, but typically used by individuals to send money to one another rather than general commercial transactions between buyers and sellers.
Using any of the methods will allow you to receive payments from your customers anywhere in the world including the US. Pick one or more of these to help you receive money safely, promptly and conveniently.