US to US wire - bank charges (for receiving royalties)

Discussion in 'Indie Business' started by Roman Budzowski, May 17, 2011.

  1. Roman Budzowski

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    Hi
    I am receiving multiple royalty streams from various US based portals. They are sending the money to my Polish bank. It's all fine except the cost. Each received wire costs me $15-$25. It easily adds up to $1000 a year. Even flying to US and open bank account over there could save me money (since the ticket is just $700), I would accumulate monthly royalties and send it over to Poland for one fee instead of 5 or more.

    The question is - is receiving royalties with US -> US wires free of cost (or much cheaper than what I pay now). I would expect that it's the same as it is with wires in Poland - PL -> PL wire costs 0-0.33 cents so it's very cheap.

    Any advices?

    Roman
     
  2. jcottier

    jcottier New Member

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    Do you know if you can open a US account without being resident?

    My French bank is also charging me a fortune for wire transfer 19 euros for receiving a transaction from outside europe and 16 euros if they have to do a change like $ -> euro (yes, I definitely need too change my bank, way to expensive). I've open a $ account in my french bank, so at least I don't have the 16 euros charges for every transaction.

    JC
     
  3. Roman Budzowski

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    Yes, you can open account without being resident. I was 10 years ago in USA on "work & travel" program, and I was able to open bank account without problems. It's probably still opened, but I forgot all the details for it :D I do have SSN so it might help a bit, but if you don't have one it's pretty easy to get one I think.
     
  4. papillon

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    Wires will still have fees. However, with a US-to-US transfer you can often get a direct deposit (ACH) which will not charge fees. You'd need to check with whoever's sending you money to see if direct deposit is an option.
     
  5. jcottier

    jcottier New Member

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    Ok, but do you know how much?

    JC
     
  6. Roman Budzowski

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    I don't know about wires, but BFG can send your royalties via ACH, so you'd get it for free to your US based account (at least they do ACH for Aff royalties). So my understanding is that most companies will do ACH when sending royalties.
     
  7. Richard Nunes

    Richard Nunes New Member

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    Generally, sending a wire is 0.3% of the dollar value sent plus a flat fee of about $25. If you open a bank account is the US as a non-resident make sure you tell the bank exactly what you're doing. With anti-money laundering laws they may refuse to accept wire instructions by fax unless you have that arrangement already agreed and signed. You also have to look at the monthly fees of maintaining a bank account to see if it's cheaper.

    If you're travelling to the US, by all means open an account because it will save you a lot of money in the long run. If your bank offers a USD account, open a USD account so that you can exchange the cash when the rate is best like jcottier does.

    Ask the portal which bank they use and call that bank to see which intermediary banks they use for Poland. A typical wire goes from a small US bank to a larger US bank like Wells Faro or Bank of America, from there to a large bank in Britain or Germany, then to a large bank in Poland, and finally to your own bank. Along the way each bank may take a fee. If you know which intermediary banks the original sending bank uses, you might be able to open an account there instead. My bank sends wires to Postbank in Germany as the intermediary for Poland. Apparently they don't have an agreement to send directly to any Polish bank. Maybe opening an account at Postbank will be cheaper if they're part of the chain.
     
  8. mobilest

    mobilest New Member

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    If your business is conducted in Poland and your bank account is opened in the US, will there be any problems with double taxation/with using your personal account (in the US) for business purposes? If BFG or other publishers regularly send money to your US account, will it not be considered a business activity in the US?
     
  9. Dingo Games

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    I looked briefly into getting a US account because I live 30 minutes from the border. However, wire transfer receiving fees weren't any less at the US banks for me.

    At my bank in Canada (TD), I get charged $10 for receiving a wire. It's the cheapest that I've seen. But it still sucks if you're getting 5 wires a month.

    I try to get paid in checks if at all possible because those are free to deposit. I love the idea of ACH, but it doesn't seem like many distributors know how to do those.
     
  10. Roman Budzowski

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    Either US is ages behind Europe in banking or we're getting confused about the whole thing.

    If portals don't send royalties via ACH then I give up :D
     
  11. Jack Norton

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    Can't you tell portals to be paid every 6 months? or to wait until they reach a good amount (like 10k or so)?
    I have a lot of expenses too :( $20 the cost on BMT side, and $13-15 to get the wire from the bank. Though I sell mostly directly, so I asked to be paid every 3 months, so even if I have 3 separate balances (GBP,EUR,USD), my total bank expenses in a year are less than $300-400.
     
  12. Roman Budzowski

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    Well Jack, even if they send $100k a month I'd rather spent that $1k on my leisure time than on banking fees. Not to mention that if I add more distributors the cost will only get higher :(
     
  13. Pogacha

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    I have really high costs per wire plus a morning doing paperwork, checks are stolen from time to time so I was interested on exactly the same thing some time back, but unfortunately I couldn't find someone in my zone which knows about the taxes implications and how it would work if I transfer from my own account to here (should I have to pay taxes in the US? ), neither my bank have any idea so I give up.
    Most companies will do an ACH because it is more practical for them and even cheaper than a check, except for the little interest lost.
    There are companies that do the intermediate thing, but I didn't like any of them.
    Here it is the older thread, there are some good messages there:
    http://forums.indiegamer.com/showthread.php?26606
     
  14. Roman Budzowski

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    Pogacha, I remember your post, but that didn't stop me from digging deeper. I'm not giving up yet. I know that my local HSBC can open US account for me for a small fee ($80). I am trying to find out who sends royalties via ACH, to make sure that I'm actually going to save money here.

    I'm also reading on various forums that USA if behind the times comparing to Europe when it comes to technology in banking...
     

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