USD is the most popular currency for doing international business as it is accepted for most international trade and transactions. It is relatively strong and stable, being the world’s reserve currency. This is why many businesses are interested in the possibility of directly receiving USD, even those outside the United States.
Yet, the challenge with opening a bank account in the US is that as a foreigner, the list of documents is a significant conundrum. Typically, you will have to provide: Proof of Identity, Proof of address and your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). These are all local documents, so that means you would have to be either a US resident or in a US business to set up a local bank account.
Moreover, you have to open the bank account in person. Imagine footing the flight fare without knowing whether the account setup will be successful, that can be distressing!
So, as a business, what other alternatives can you explore?
Corporate Multi-currency Account: Pros and Cons
Multi-currency accounts have become increasingly popular, that is a bank account which allows you to hold multiple currencies all at once. Like any other local bank account, you can also deposit, withdraw and send money - though this time, with a wide range of currencies that includes USD. This is why many international banks are promoting corporate multi-currency accounts.
However, what isn’t open knowledge is that a multi-currency account doesn’t escape from exorbitant fees imposed by banks. You will still be exposed to costly FX margins and transaction fees. You will also need to commit to holding a USD balance, or you will be charged a minimum balance fee.
If you are a small-medium business, you may not get dedicated account service. Think about it. What if your customer tells you that they have paid but it hasn’t appeared in your account, or you really need a payment to be expedited so it doesn’t disrupt your cash flow? These situations prove that having an account manager really helps when you need to troubleshoot your collection of USD payments. It can make a great difference to your business when you have a dedicated personnel to follow-up, expedite and resolve your issue.
Corporate Multi-currency Accounts vs Wallex Global Business Account
As an alternative to banks, Wallex has a fully online platform for your business’s multi-currency needs, with seamless FX and honest rates. It is free to sign up for a Global Business Account with Wallex. Like a multi-currency account, you can use it to pay, hold, convert and collect multiple currencies. Aside from USD, you can also collect funds in GBP, EUR, IDR and more.
Compared to banks, Wallex can offer competitive, mid-market rates. When you collect money with Wallex, you can reduce FX loss by avoiding unfavourable rates and save on multiple conversion fees, which would lead to increasing your net earnings. Aside from transacting through SWIFT payments and telegraphic transfers (TT), Wallex also offers the chance to transact through local transfers which could satisfy your customers. Through Local Transfers, it can be cheaper, faster and easier for them to pay you.
At Wallex, each business also gets a local dedicated Account Manager regardless of business volume or size. Edtech company Erudifi shares how their Account Manager supports them in overcoming payment limits or speed issues, while trading company Alzys Global is reassured that there is always a person to call.
It Is Safe To Open A USD Collections Account With Wallex
Wallex holds a license as a Major Payment Institution, issued by the Monetary Authority of Singapore (MAS) under the Payment Services Act 2019. The platform is also licensed and regulated in Hong Kong and Indonesia.
All customer funds are safeguarded and kept in a customer segregated account which is separate from all other Wallex operations accounts. Wallex operates within a very strict framework both for compliance and for the safety of funds in custody, so it is safe to open a Global Collection Account to receive USD payments.
List Of Documents Required To Open A Wallex Global Business Account
Unlike overseas banks, you can use your local company registration documents to set up a Wallex Global Business Account and directly receive payments in USD. Required documents include:
- Incorporation Documents
- Director, Ultimate Beneficiary Owner (UBO) and Authorised User’s Documents
- Proof of Address
How To Open A USD Collections Account With Wallex
1. Sign up for Wallex at https://accounts.wallex.asia/signup
2. Submit your documents for KYC online, all in one click!
3. Once your documents are verified, you can start using the Wallex platform. Click "Collections" on your menu, then "Add New Collection/VA" to select USD.
4. Once you select USD, click to "Activate Local Currency Account". Your account will be activated immediately.
5. You can then proceed to create your USD Collections Account Details, which can be shared to your customers and clients.
6. Funds will be received in your Wallex wallet. You can view your multi-currency wallet directly on your dashboard.
7. If you wish, you can further proceed to remit your funds to make payments to 180+ countries globally. Find out more about our cross-border payment solution here.
In Summary: Receive USD as if you have a local bank account
- Save time when you open an account
Create your Wallex Global Collection Account at the click of a button. Skip the bank queues and excessive paperwork usually involved in setting up international bank accounts. You wouldn’t need to physically travel to open a bank account, as everything happens online!
- Increase your net earnings
Wallex provides competitive rates and fees, allowing you to reduce your FX losses. Through less intermediaries, we also help you save on multiple conversion fees, thereby increasing your net earnings.
- No monthly maintenance fees
Zero monthly maintenance or fall below fees. Our global accounts are at your convenience.
There are also no time limits or restrictions when it comes to maintaining USD in your account, allowing you to convert at your comfort and convenience - as well as capitalise on the best market rates possible.
Start Receiving USD with Wallex
Establish your global collection account in minutes with Wallex. Sign up for free at www.wallex.asia
Aside from accepting international payments in USD, you may also receive international payments in 34 other currencies. Find out more about the Global Collection Account here.