This document discusses various payment methods that can be leveraged to benefit a business, including currency exchange rates, payment processing options, and assessing specific needs. It provides an overview of different currency exchange considerations and payment processing options such as checks, direct deposit, wire transfers, PayPal, currency exchange services, prepaid debit cards, and credit cards. Key factors discussed include exchange rates, fees, processing times, currency control, and customizing a payment strategy based on client types, amounts, currencies, and terms. Resources for further information are also provided.
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. 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. 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.
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7. Wire transfers
• Expensive.
• High fees to client.
• High fees to you.
• Fees that no one claims (!)
• Unfavorable exchange rates.
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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