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How to receive large payments (in millions) without fees?

 2:16 pm on Nov 24, 2012 (gmt 0)

let's say i have 28 special widgets that i sell to people over the internet, and these people each will pay me a million dollars per widget

i sell 28 widgets to 28 different people and they each will pay me a million bucks

what is the best way for all of these payments to be transacted

obviously paypal is not the way to go

i suppose i could ask to be mailed a check to my physical address - maybe this is the best way

but maybe some kind of escrow service is necessary? would this eat into a large chunk of each payment?

i'm totally new to the realm of million dollar transactions so i would love some pointers if you got any, thanks



 2:38 pm on Nov 24, 2012 (gmt 0)

Bank wire.


 2:40 pm on Nov 24, 2012 (gmt 0)

ah, i shall research that, thank you TypicalSurfer


 11:15 pm on Nov 24, 2012 (gmt 0)

A million dollars? Seriously? Send a guy with a suitcase.

[edited by: incrediBILL at 9:59 am (utc) on Nov 25, 2012]
[edit reason] Thread clean up [/edit]


 9:29 am on Nov 25, 2012 (gmt 0)

pay pal......well after all this is such a silly question


 10:08 am on Nov 25, 2012 (gmt 0)

I've got a big suitcase and am free to travel... ;)


 10:16 am on Nov 25, 2012 (gmt 0)

I used to require bank wire transfer for orders over a couple of thousand just to avoid getting royally screwed by fraud unless it was a well established customer.

I would seriously check the customer to make sure they're legit because if a fraud wire transfer occurs the bank may just lock the amount of funds on your account while investigating but they could lock the whole account.

Banks get nuts over sour transactions in the thousands, so I'd suspect they go super bonkers when something goes wrong in 7 digits.

i suppose i could ask to be mailed a check to my physical address

I'd have it insured, registered and require signature and wait until the check clears before shipping.

FWIW, I'd just call my bank and ask them how to proceed as they obviously have a vested interest in your success with a transaction of this scale.

Assuming you're in the U.S., I believe anything of this size will also trigger IRS notices and might even catch the interest of the DEA :)


 11:09 am on Nov 25, 2012 (gmt 0)

Assuming you're in the U.S., I believe anything of this size will also trigger IRS notices and might even catch the interest of the DEA
Or equivalent agencies if you are elsewhere.

DEA? I think somebody would be carefully investigating that those widgets were what the manifest said and not something of military quality.


 11:50 am on Nov 25, 2012 (gmt 0)

I would be happy to pay a fee simply for piece of mind. With large sums there are so many factors in play that it is a minefield trying to avoid fees, get your money and remain on the correct side of the law.

It may be a good idea to consult with your lawyer, and also your bank. As has been mentioned in this thread already, the bank have a vested interest. Transfers involving large sums is something they do on a daily basis.



 12:45 pm on Nov 25, 2012 (gmt 0)

wait until the check clears

This is trickier than you would think. I asked once-- when the sum involved wasn't anywhere near a million. The bank has a set period before they'll release the funds, depending on how much it is and where the originating bank is located. But this is independent of when the check has truly, physically cleared. To be safe you'd have to wait at least twice as long-- and by that time your buyer will be getting unhappy.

I don't know what the going rate is for suitcase guys, but I would think you could get it done for, let's say, $10,000 at the outside. That's one percent of your total transaction. Can your bank give you a better deal?


 12:46 pm on Nov 25, 2012 (gmt 0)

Two accounts. One specifically for the wire transfers. The second a working account. The second the wire transfer is complete and verified, move the money to the second account.


 6:27 am on Nov 26, 2012 (gmt 0)

appreciate ze input y'all

for sure will talk with my bank and access their expertise on the matter


 11:14 pm on Nov 26, 2012 (gmt 0)

Definitely wire transfer. When paying overseas suppliers it's the only method any suppliers will accept (along with letter of credit in some cases).

I wouldn't in a million years trust PayPal or other merchant provider with a huge transfer like this...you have almost zero protection (I can hear your customer's call to the bank right now, "I didn't place this order").


 5:30 am on Nov 27, 2012 (gmt 0)

This is such a different league, it's almost silly. That is... 'get on your Lear and pick it up yourself' money. Call your private banker, lawyer, accountant, and anybody else you can think of. Many pitfalls.


 5:25 pm on Nov 27, 2012 (gmt 0)

Years ago I worked for an official importer of Siemens household electrical goods.
They deposited the money at a special bank (can't remember specifics)and the payments were cleared when the goods were delivered successfully.
Should still be able to do that. Takes the risk away from both parties.


 3:45 pm on Nov 28, 2012 (gmt 0)

i'm not sure if this thread is a joke or not.

however in good faith:

>>How to receive large payments (in millions) without fees?

the financial services industry is huge and nothing is free (once you are outside being a small scale consumer - where free banking services are a loss leader to suck you into profitable things like overdrafts, loans, insurance and pension products etc!)

most businesses pay to pay in or withdraw cash, coins etc.

regarding million dollar items, i've never dealt in such things, however i know a little about higher priced items - they are not bought off the shelf, you don't stock items like that hoping that someone will just come along and buy it. generally it would be manufactured in some way and a contract would have been drawn up and an order made, payment could well be made in stages too ... like a down payment at the time of drawing up the supply agreement, perhaps interim payments and then a final payment on receipt or even spread out many months or even years after receipt.

the costs of transfering/hamdling payments and even insurance for non payment should be included in the price as always.


 9:12 pm on Nov 28, 2012 (gmt 0)

the financial services industry is huge and nothing is free

In my young, pre internet, days I worked for a while in the international section of a major bank. My main task was processing documentary credits and taking a fee out of all proportion to the work done for each transaction.


 2:08 am on Nov 29, 2012 (gmt 0)

Regardless if the OP's intent was a joke the answers (well most them) are useful to others that may actually need something like it.


 5:02 am on Nov 29, 2012 (gmt 0)

fwiw, this question was originally posted in foo. About two and a half answers were deleted in the move. I gotta assume incrediBill-- or one of the Bills anyway-- consulted the OP before taking action.


 7:30 am on Nov 29, 2012 (gmt 0)

These days, courier in gold bullion LOL. Your post certainly got my attention.

But on the serious side, transactions that large you should consult an escrow company.. they put up the money, you deliver your widget and then the escrow pays you.


 7:54 am on Nov 29, 2012 (gmt 0)

twernt a joke folks

tho i haven't made such gargantuan transactions, i surely see it as a possibility, and i appreciate greatly all your insights and energy in this arena... the internet is still the wild wild west and i see it as richly ripe with opportunity for dreamers such as me

anyway, i'm flowing in a different direction right now, focusing more on massive amounts of small payments, rather than a decent bounty of mega payments


 1:14 pm on Nov 29, 2012 (gmt 0)

focusing more on massive amounts of small payments

I hadn't thought of that idea before. Thanks!


 1:39 pm on Nov 29, 2012 (gmt 0)

Any wire transfer $10,000+ will be recorded.

So stick to $9,999 increments :)


 7:30 pm on Nov 29, 2012 (gmt 0)

A lot of "$9,999" increments will raise the red flag as well, its called SAR (suspicious activity report).

Mr Bo Jangles

 9:01 pm on Nov 29, 2012 (gmt 0)

Using a lawyer's trust a/c to wire payments into and out of would provide comfort to both parties, provide cheap pseudo escrow, and all managed for a trifling fee.


 2:44 am on Dec 3, 2012 (gmt 0)

Hire a good accountant and lawyer


 9:18 am on Dec 5, 2012 (gmt 0)

It all depends on what you are receiving the payment for, where you (and the buyer are) and how solvent and trust worthy you think each other.

Letter of credit for import and export, escrow where there is little trust or likelihood of disagreement, payment in tranches for services (construction, software development, etc.), invoicing and waiting for a cheque or wire transfer if your buyer is solvent and trustworthy, even selling on credit (e.g. finance leases).....

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