International Payment Options for the Language Industry

Transcription

1 International Payment Options for the Language Industry CTA Annual Conference May 2013 Eve Lindemuth Bodeux Principal Eve Bodeux 2013 ~ all rights reserved

2 The Problem Send/receive international payments Need cost effective method(s) Small industry LSP s small companies Small payments by intl standards

3 What does a solution look like? Easy to use/flexible Low cost Good exchange rates Rapid (not time consuming) International / Available in countries you need Widely accepted Secure / Trustworthy Combination of solutions? Others?

4 Topics for Discussion Current Payment Methods Currency Exchange Discussion Preferred Payment Methods Assessing your specific needs

5 Current Payment Methods What are you using? How many different methods? What are the positive aspects? What are the negative aspects?

6 Current Methods List Checks Wire transfer Direct deposit (ACH / EFT) Paypal, Moneybookers/Skrill, etc. Credit cards Other?

7 Currency Assess your currency strategy! This is key to your success when making/receiving international payments. Decide which currencies you use/accept Exchange rates vary per method Exchange rates vs fees (!!!!!) You want to control transaction timing

8 PayPal Look critically at PayPal/Skrill Not banks facilitates intl (or domestic) transactions You do not control exchange rate when you send or receive foreign funds on PayPal Exchange rate is not good (= very bad) Per transaction fees + % of sale possible Intl laws governing fees/types of transfer vary Low risk (mostly) Sometimes work-around (no fees for infrequent payments) personal Mass Payment Feature Rapid and Convenient

9 New Options Assess other options for the right fit! Banks that cater to wider international clientele not just huge corporations Foreign Exchange Companies TranslatorPay TransferWise Prepaid debit cards Make sure you understand your current bank(s) offerings (free/low cost ACH? Online bill pay for US vendors?)

10 Types of Bank Accounts Assess Your Bank Account(s) Multiple bank account strategy Different currencies in local bank Business vs. personal for business use Intl bank account requirements Citizen? Resident? ATA member? Business vs personal account access

11 Direct deposit (ACH/EFT) Say yes to ACH! ACH Automatic Clearing House EFT Electronic Funds Transfer Bank to bank Also known as direct deposit Consider currency Consider fees Domestic or foreign bank receiving funds? Wire vs. ACH 1-5 days and low risk Often free for bank customers Leverage with other methods

12 Wire transfers Say no to wire transfers! Expensive. High fees to vendor. High fees to freelancer. Fees that no one claims (!) Unfavorable exchange rates. Why should your money go to the bank?

13 Foreign Exchange Companies cambridgefx.com american.express.com/ip Western Union All legitimate/large financial institutions Need a business account to FUND transactions (not receive) Provide variety of services services vary: Low(er) cost international and possibly domestic transfers (ACH / EFT international or domestic) Foreign exchange services USD to EUR / USD to other, etc. USD to USD?

14 Foreign Exchange Companies Not technically banks financial institutions that facilitate intl transactions. Use creatively to create your own strategy Low currency exchange rates make money on float Low(er) or no fees. Relatively quick (1 to 3 days is norm). Use more than one - compare their rates in real time Easy-to-use interfaces EUR to USD ~ USD to EUR or other currencies

15 TransferWise TransferWise.com Peer-to-peer Skype and Ebay original founders Quote: Bye bye banks. You ve had your fun. Banks charge a lot for foreign-currency transfers. We don't. Target general intl community: expats, small biz, foreign students, etc. Don t need a business account Competitive rates No USD to USD (single currency transfers) No from USD: coming soon

16 TranslatorPay Inspired (in part) by podcast Corinne and I gave several years ago on this same topic (Paul Sulzberger - NZ) Inspired by cost and frustration in our industry with intl vendor payments Specific solution for LSPs in language industry Rate you see is final: good exchange rates (best?) Vendors control banking info in system Goal = vendors receive 100% of invoice Visit: translatorpay.com/ and social media

17 Prepaid Debit Cards Prepaid debit cards have specific purpose. 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) May be only way to pay certain vendors in certain markets Example service supplier:

18 Customize your payment method strategy Consciously define your payment strategy to save money and time! Types of vendors/clients Typical range of amounts paid Foreign Currency versus local currency (EUR? USD?) Payment terms (when is payment due?) Who are your vendors/customers? Where are they located? What currency do they prefer? Mix and match your options Consider international accounting/tax issues Keep looking international options continue to evolve!

19 Thank you! Eve Lindemuth Bodeux bodeuxinternational.com adventuretranslators.com speakingoftranslation.com