5 Tips for Receiving International Payments Safely

Accepting international payments securely is critical for global eCommerce businesses. In this article, we will list the best merchant options, name services, and highlight strong and weak points.

Best ways to receive money internationally safely

Online payments

Probably the best option for a merchant who wants to collect payments from customers on a regular basis. Online payments can be accepted through the selling website by connecting it to a global payment service via an online payment gateway tool.

The most beneficial characteristics of online payments

Simple usability. The majority of customers are comfortable with online payment systems and ordering goods and services over the internet.

Fast transaction speed and processing. Online payments are processed in seconds, giving the customer the impression of instant gratification and bringing a direct call to a merchant's account.

Strong security. Online payments are vulnerable to fraud and hacker attacks, which is why they are one of the most secure and thus widely used methods of transferring international funds.

Fees are the only aspect of online payments that a merchant finds unappealing. However, none of the banking services are free. There is no matter which method of money transfer a customer chooses, such as SEPA.

Letter of credit

A letter of credit is a legal document issued by a financial institution and transferred to another country's receiving financial institution. The letter of credit guarantees that a customer will make a specific payment by a specific calendar date.

When a financial institution issues a letter of credit, the financial institution is responsible for the payment provider. As a result, letters of credit are more reliable and secure, as the risk of fraud is reduced to a minimum. But, first and foremost, a letter of credit has an expiration date and will no longer be valid after that date. Second, this type of payment is inconvenient for a customer's daily needs.

Personal check

Another option for receiving an international payment is to use a personal check. A customer can request a refund from their bank for the amount deposited into their account. It can also be obtained from the post office. Banks and post offices both charge a small fee for a personal check, and the receiver may also be charged for cashing the check. In terms of transmission, personal checks can be mailed or scanned and processed digitally.

International money order

An international money order is a legal financial document that functions similarly to a bank check. Money orders are a type of prepaid payment. It means that a customer must pay for a money order in advance using cash, credit or debit cards. The advantage of this type of international payment is that the fees are relatively low. And, without a doubt, it is advantageous financially to obtain a payment in advance.

However, international money orders take a long time for financial institutions to process, and they are frequently subject to fraud and speculation due to the difficulty of tracing money orders.

International wire transfer

International wire transfers are a popular method of global payment. It is usually well secured and takes very little time to process. Both of these advantages are similar to those of online payments, as international wire transfers also rely on a financial banking network. A wire transfer is essentially an electronic transfer of funds between financial bank accounts via a network such as SWIFT, personal check, or eWallet. Banks, on the other hand, can charge exorbitant fees for international wire transfers.

Best services for international wire transfers safely

There are four primary services for performing an international wire transfer.

• A customer can use a financial institution's online services to initiate a wire transfer over the internet.
• A customer can make a wire transfer in person by visiting a financial institution branch and requesting personal assistance.
• A customer can initiate a wire transfer over the phone with a financial institution representative.
• A wire transfer can be initiated by a customer using a specialised money transfer service.

Pros & cons of international wire transfers

Pro

1. Processing speed The funds are received in real time, with movement taking one or two business days.
2. Convenience. Wire transfers are not limited by borders or currencies. It is a convenient way to make international transfers.
3. Security. Financial institutions that are authorised to conduct such transactions are well protected and are subject to a number of international legal requirements.

Cons

1. Charges. International wire transfers are expensive. Especially when it comes to international transfers.
2. Fraud. Obtaining key private information grants access to a bank account, making it simple to carry out the unwanted transfer.
3. Non-reversibility. The wire transfer cannot be reversed once it has been initiated. Regardless of the mental charge or error.

What is the most secure way to receive money from abroad?

Both online payments and international wire transfers are highly secure and fraud-free.

How do I receive international payments in a secure manner?

Accepting international wire transfers or using the best online payment gateway and installing an online payment option on the website.

What is the best method for accepting international online payments?

Even so, the best ways to receive money from abroad are online payments for frequent purchases and international wire transfers for one-time transactions.

What is the quickest and safest method of receiving money internationally?

By allowing customers to make international wire transfers or implementing online payments to the website.