How Payment Works
International payments can be a tricky business, given the various currencies involved and wide range of possible methods available. I came up with a process which keeps things fairly simple and consistent, and aims to keep third-party fees as low as possible.
Option 1) TransferWise
TranferWise is a fantastic way to send money overseas. (Find out how TranferWise works.) It has much lower fees than other options like wire transfers and PayPal. The only downside is that not all currencies are accepted yet. But if you'll be sending USD, GBP, or EUR, then this is definitely your best option.
Here's a summary of the process:
- Sign up for a free Transferwise account. This takes 20 minutes, plus a day or two for your personal identification (such as a photo of your passport) to be verified.
- All my quotes and invoices are in USD. Before you go ahead with the transfer, we'll need to convert that amount into NZD (New Zealand Dollars). Here's a good online tool for doing that.
- Make a new transfer, with email@example.com as the recipient email address. The transfer must be in NZD rather than USD, since that's the only way my bank in New Zealand will accept it.
- TransferWise will give you instructions about how to send the money to their account in your country.
- I'll get an email notifying me about your payment request. I can then enter my bank details, and the payment will be processed over the next few business days.
Option 2) PayPal
PayPal has higher fees than TranferWise, but some people find it more convenient, often because they already have a PayPal account set up. Here's how it works:
- Sign up for a free PayPal account (if you haven't already).
- Make a new PayPal transfer, with firstname.lastname@example.org as the recipient email address. (It's very important to use the correct email address in this case). The transfer can either be in USD, or the equivalent amount in NZD, depending on what we've agreed on.
Option 3) Direct Bank Transfer
This refreshingly easy option is only available for clients with a New Zealand bank account. I'll send you my bank details, and you'll be able to make the payment directly as you would with anyone else. Pretty simple really!