Rented unit to Australian Family what is best way to transfer funds?

I have an Australian family wishing to rent from me (I'm in the US). What is the best way (and least expensive) to transfer funds? I do my own rental agreements.

Thanks in advance,

Monika

Probably a bank to bank wire transfer. Paypal is also a good option, but it will cost 2.9%.

The bank transfer is probably cheaper - there will be a charge at both ends. However, your renter may feel more secure using Paypal, because they have no recourse with a bank transfer.

I have done several European to US bank transfers (mainly for TS rentals). Your US Bank has clearing arrangements and usually has printed directions for such transfer ... mainly for first timers.

I also vote wire transfer.

International fees for PayPal are an additional 1-2.5%.

tschwa2 said:

International fees for PayPal are an additional 1-2.5%.

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Oh you're right - that gets steep.

DeniseM said:

The bank transfer is probably cheaper - there will be a charge at both ends.

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Not necessarily. I send wires internationally often and my banks standard fees are about $45 or $50 per wire (I pay less since I also pay a monthly fee so I can send wires online and forget the exact one off rate). As part of the wire the sender may assume all responsibility for the wire fees, which is common (and included in the estimate above). If your bank wants to charge you a fee to receive a wire, then that fee should be paid by the sender.

Wires are extremely expensive in the US as compared to other countries, and I wouldn't be at all surprised to learn that it's a relatively inexpensive issue from Australia. On the other hand, I also wouldn't be surprised if the Aussie bank charges more just to deal with a U.S. bank.


Sent from my iPad

It is also possible for the renter to get a check in US funds from their bank to send to you. I've done this for Canadian renters. Problem with this would be that it takes a while to get to you and it takes 1-2 weeks for the check to clear. The problems that are inherent to checks would also apply. I am usually happy to take a check from a repeat renter who rents early enough and will discount the rental since the paypal fees won't apply but I don't always offer the option for someone I've never dealt with before. It's more likely they will think I am trying to scam them with no recourse and I don't want to have to deal with the possibility of a NSF fee.

Can you not take a credit card.?

Most private individuals have no way to accept a credit card, except through Paypal, or something similar, and then there are the fees we've been discussing.

Your renter will need your SWIFT BIC and routing number to transfer money to your account via IMT. The term 'wire' isn't used here. They can send the money in your currency.

Here are the options for Australians sending money internationally from the Big 4 (the 'Big 4' relates to the four largest banking institutions in Australia).

ANZ BANK - http://www.anz.com.au/auxiliary/help/help/how-to/overseas-funds-transfer/

Commonwealth Bank of Australia - https://www.commbank.com.au/personal/international/international-money-transfer.html

NAB (National Bank of Australia) - http://www.nab.com.au/personal/help...ional-payments/how-to-transfer-money-overseas

Westpac Banking Corp - http://www.westpac.com.au/travel-centre/access-money-overseas/overseas-payments/

If you want a 'check' ask for a 'cheque' or they probably won't know what you mean.

DeniseM said:

Most private individuals have no way to accept a credit card, except through Paypal, or something similar, and then there are the fees we've been discussing.

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Always going to be fees to accept payment by credit card wether directly or through a 3rd party.

also consider the exchange rate. I accepted a paypal payment from an Australian customer. The fees werent the problem.. the exchange rate that paypal used, was

CarolF said:

Your renter will need your SWIFT BIC and routing number to transfer money to your account via IMT. The term 'wire' isn't used here. They can send the money in your currency.

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Interesting. All of the "wires" I send use SWIFT and my bank still calls it a wire. I don't know the intricacies of this process other than to be certain all the codes are in the right place since once it goes there's no recovery process. Do you know the cost of sending money from Australia to the US?


Sent from my iPad

I have never heard of it referred to anything but a wire transfer, but "bank transfer" probably works. The process is still the same. An ACH is different and takes longer. A eCheck would take even longer. An ACH or wire is good when it hits, but an eCheck can still bounce later.

A wire transfer is an electronic payment service for transferring funds by wire, for example through SWIFT, the Federal Reserve Wire Network or the Clearing House Interbank Payments System.

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Thanks for all the input.

I called my bank and I can accept an International Check (Cheque) and deposit it in my bank for a fee of $5. For a $4000 rental I think it is a good deal for me. Also, the rental check in day isn't until next January which gives me plenty of time to wait for the check to clear.

Monika

Ken555 said:

Interesting. All of the "wires" I send use SWIFT and my bank still calls it a wire. I don't know the intricacies of this process other than to be certain all the codes are in the right place since once it goes there's no recovery process. Do you know the cost of sending money from Australia to the US?

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'Wire' is an American term and it isn't internationally recognised. I know it is a banking term because I heard it used in some old American movies. A younger person may google "What does the phrase "wire me some money" mean?" and discover the history with Western Union. WU holds the dubious honour of winning the scammers favourite money transfer agency (on several occasions).

SWIFT ~ Swift Codes are handled by Society for Worldwide Interbank Financial Telecommunication (headquarters in La Hulpe, Belgium), they're internationally recognised and credible.

There are so many ways to transfer money and costs vary. Australians travel widely and regularly and many people have multiple currency bank accounts.

An example from one bank ~
Sending an IMT (International Money Transfer) by going into the bank building and talking to someone is AUD$32
Sending an IMT via Internet Banking is around AUD$24
Sending an IMT via Phone Banking is around AUD$32

An International Draft is a physical paper cheque issued by the bank in the currency of the purchasers choice. These cost the purchaser approx. AUD$30.

Saintsfanfl said:

I have never heard of it referred to anything but a wire transfer, but "bank transfer" probably works. The process is still the same. An ACH is different and takes longer. A eCheck would take even longer. An ACH or wire is good when it hits, but an eCheck can still bounce later.

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ACH is an American term and process and is not recognised for international money transfers. eCheck appears to be some sort of Paypal process?

molemay said:

Thanks for all the input.

I called my bank and I can accept an International Check (Cheque) and deposit it in my bank for a fee of $5. For a $4000 rental I think it is a good deal for me. Also, the rental check in day isn't until next January which gives me plenty of time to wait for the check to clear.

Monika

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It took me a couple of years of hanging out here to work out that all Americans use the word Check for Cheque. Americans are the only ones to spell it like this. Initially, I couldn't work out what people were talking about, then I thought there were a lot of people who couldn't spell.

Cheques aren't very common here, but your renter will be able to buy an International Cheque/Draft and they will probably use one of the Big 4 Banks (mentioned above). It is extremely unlikely that an Australian would use a cheque to conduct a scam so you should be safe.

When discussing money internationally, it is helpful to be specific about the price. $4000 is not US$4000. You might be sent AUD$, FJD$ or worse SBD$.

If someone here sent me an email reading "you can wire me $4000 or send a check", I wouldn't be too surprised because I've been desensitised to the terminology and spelling. However, it would likely be a "red flag" to a lot people internationally because of the obscure terminology and spelling.