Business bank account with low or no international transaction fees

[greggles]

I'm currently investigating business bank accounts with either low or no international transaction fees. Most banks seem to change around 3% and upwards for transactions in foreign currencies made with a Visa or Mastercard debit card.

I have seen a recent proliferation in foreign currency bank accounts but haven't really looked into whether or not they are suitable for frequent transacting in foreign currencies. A number of banks appear to be offering them though.

The bank account would be used for an importing business where foreign transactions are the rule rather than the exception. Surely in this 21st century world with unprecedented global trade there are low cost options for small businesses who make a lot of foreign currency transactions.

Does anyone have any advice or experiences to share?

 

[CBerg]

Not many banks offer cheap business bank accounts and foreign currency is where a lot of bank charge $$’s to businesses.

I personally use my own credit card (BankWest platinum zero, no annual fee, 55 days and no foreign currency fees) for anything that’s paid in another currency. That transaction is just paid via a directors loan in the accounting software. I also use the BankWest zero business transaction account which is free for all domestic online transactions.

ING offer personal accounts with no foreign transaction fees for a month if you meet the criteria the month before.

Good luck with the search Greggles, can you let me know if you find anything because it’s something I face but deal with via personal products as I haven’t been able to find anything suitable aimed at small businesses either.

 

[greggles]

Thanks CBerg, I'll keep searching and will report back if I find anything that fits the bill. I appreciate your feedback.

 

[willy1111]

Citibank also have foreign transaction fee free account too...but I think it is just for personal use.

Maybe also see what HSBC has to offer.

 

[greggles]

Citibank also have foreign transaction fee free account too...but I think it is just for personal use.

Maybe also see what HSBC has to offer.

Thanks Willy! Yes, one of the things I have noticed is that there are a few personal bank accounts that fit the bill but unfortunately they cannot be used for business as per their Terms and Conditions. The Citibank Plus account you mentioned is one. As CBerg pointed out, international transaction fees are one of the ways that banks make money from businesses. So I suspect that finding a business bank account with no international transaction fees might be a bit like trying to find a four leaf clover (or perhaps a unicorn?)

I will check with HSBC, but I can't find any information about business bank accounts on their Australian website at all.

 

[greggles]

After doing some research today, I'm leaning towards the conclusion that the best way to do this might be to set up a no fee business bank account such as the BankWest Business Zero Transaction Account and then use an International Money Transfer service such as TorFX or OFX for sending or receiving payments in foreign currencies.

I will investigate further and update this thread if I find a better solution or have any further information or experiences to share.

 

[CBerg]

After doing some research today, I'm leaning towards the conclusion that the best way to do this might be to set up a no fee business bank account such as the BankWest Business Zero Transaction Account and then use an International Money Transfer service such as TorFX or OFX for sending or receiving payments in foreign currencies.

I will investigate further and update this thread if I find a better solution or have any further information or experiences to share.

I'm not sure what this works out to price wise compared to the options above but this product actually sounds really cool https://transferwise.com/au/business/ send/receive fx for minimal fees. I just came across the business side of it because I'm looking for ways to lock in some USD for an upcoming personal trip.

 

[greggles]

I'm not sure what this works out to price wise compared to the options above but this product actually sounds really cool https://transferwise.com/au/business/ send/receive fx for minimal fees. I just came across the business side of it because I'm looking for ways to lock in some USD for an upcoming personal trip.

Looks good! Transferwise appears to be along the same lines at TorFX and OFX. These services seem to be doing what the banks aren't - providing low cost foreign currency transactions for businesses and individuals. It's not free, but it's a hell of a lot cheaper than 3%. Now I have to sort through these International Money Transfer services and find the one that works best for importing goods from overseas.

 

[CaslRobens]

Your point about the proliferation of foreign currency accounts is spot on. The finance world has definitely evolved, and many banks have recognized the need for business accounts tailored to frequent foreign transactions.