International Customers.. How do you handle them?

[Compworld]

We are started to receive a good amount of international traffic from Asia, Eastern Europe, and China. Most recently, we were contacted by a company in China for advertising possibilities. My question is how should we accept payment from them? Wire Transfer, Credit Card, Paypal, company check, etc. I am hesitant to accept a credit card, Paypal, or company check from any new customer outside of the US or Canada due to the charge back implications. Would wire transfer be the best route? Also, if we give our wire transfer information (Routing #, checking acct #, etc.) Can this have any negative affects on our bank account? We did a wire transfer with a well known company in Israel, and no problems had arisen via that route. Would this be handled the same way?

Any suggestions?

Thanks,

CompWorld

[rogerd]

Interesting question, Compworld. A wire transfer will put funds in your account safely - as you note, though, you have to disclose your account information to do one. A fraudster could offer to wire money to get your account info. I don't know what they could do with that, but counterfeit checks (with valid company name, address, bank number & account number) come to mind.

Some foreign companies have the ability to write dollar denominated official bank checks payable by a US bank; it seems like that would be fairly secure, though counterfeiting would be theoretically possible.

What about opening a bank account just for wire transfers? Keep it empty (or nearly so), and remove wired funds immediately. This would add a layer of insulation for your "real" account. Even if someone tried to withdraw funds from the account using forged documents, you wouldn't be vulnerable.

[henry0]

you can accept a check in mostly any denomination
I am in the US and did a few deposits in FR denomination

Only drawback is that it cost you a little
(ask your bank)
and it is not very speedy!
but very secure
1) the check is sent back to the originating bank
(via bank to bank)
2) when your bank is credited you got the amount transfered to your account
Henry

[Compworld]

I just spoke to my bank, and they had said that there is no way that they can pull money out of an accout w/o my written consent. Additionally, they had told me about having the client do a Foreign Currency Transfer instead of a standard wire transfer.

Anyone every heard of this? I am not very knowledgeable with wire transfers, so please bear with me.

Thanks,

CompWorld

[mifi601]

I do international transfers all the time. in europe it is common to write on ALL company stationary account number and routing number. nobody bothers with checks and wire transfers(?!). they deposit the money directly into one's account.

when you do give them your account number make sure they carry ALL the cost, so that the money that arrives is the exact amount you specified.

[vibgyor79]

>>> for advertising possibilities

Aren't you being a little overly cautious? Isn't this company trying to advertise their products on your site? Or are you shipping products to china?

[Compworld]

Ever hear of a sheep’s in a wolves clothing? Well, that is why. This is uncharted territory for me, and I try to take all percussions. Prepare for the worst, expect the best. They advertise on our site their products that are from China.

CompWorld

[mifi601]

you are not shipping anything? - just take their ads out if they default.

I really would not worry about it. They cannot do a thing with your account info (other than maybe find out how much is in it - with some US banks it is incredible how easy that is; call them up and ask whether a check for x will clear?!)

[Tropical Island]

CompWorld:

We receive wire transfers all the time without problems from all over the world. Where the money goes will depend on the cost. US and British banks seem to be the worst for very high fees. Euro banks are very reasonable as is our Canadian bank.

You might want to check on fees with your bank to see whether you have to account for this in your charges to the new client.