Client insists on wire transfer

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Mike Mahoney
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p.1 #1 · Client insists on wire transfer

I've a client that insists on paying for some already delivered files with a wire transfer .. I've suggested a cheque or bank draft but they keep coming back with the bank wire transfer payment.

To receive a wire transfer I'll need to give them my bank account info which I'm not about to do. Plus a wire transfer is such an unusual way to pay an invoice .. to put in perspective in 10 years and over three thousand invoices this is the first wire transfer request.

This is a small international (European based) company and I'd getting the feeling that I may be part of some kind of scheme to get my bank info.

Any thoughts .. am I just being paranoid

Thanks,
Mike

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 06:45 PM

CTYankee
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p.1 #2 · Client insists on wire transfer

Call your bank and ask about any security issues. They can let you know what is at issue and how to prevent fraud. Wire transfers are not a big deal provided both sides agree to it and are on the up and up. Did this client conduct themself in a professional manner until now? Are they a legit business? If so then I doubt bank fraud is what they are up to.

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 06:47 PM

Mike Mahoney
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p.1 #3 · Client insists on wire transfer

I called the bank and they suggested not giving any information to anyone except trusted people .. this is a new client, and an international one so the trust level is not high.

When I google the company I get a lot of returns in Spanish .. so I don't know who thay really are.

I'm getting a fair amount of recent file orders from Europe so it's not that unusual .. but everyone pays with a cheque.

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 07:03 PM

cavis
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p.1 #4 · Client insists on wire transfer

Mike Mahoney wrote:
When I google the company I get a lot of returns in Spanish .. so I don't know who thay really are.

Use http://world.altavista.com/ to translate.

Personally, I'd walk. You control the transaction, so if you aren't comfortable, just turn down the business.

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 07:27 PM

Daniel Turner
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p.1 #5 · Client insists on wire transfer

But they already have the files...

Is there any way you could get a temporary (virtual) account, like on a credit card with virtual accounts? That way you could wire the money into it, take it out, and close the account. Effectively keeping them from seeing your "real" info while still getting the money.

It should work smoothly, and they wouldn't know you are set up that way unless there is impropriety on their part and they try to scam you.

Would the bank do this? Or does it look really fishy now?

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 07:35 PM

yogi3939
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p.1 #6 · Client insists on wire transfer

Have you considered setting up a paypal account. All a payee needs to pay you is the e-mail address the account was set up with and only you can access the actual account with your password. Then they can do their wire transfer to the paypal account but I would make them pay the fee paypal charges.

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 07:41 PM

Mike Mahoney
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p.1 #7 · Client insists on wire transfer

Thanks for the suggestions .. I can set up a seperate account just to accept this one transfer but it's a corporate account so takes a bit to get it up and running .. the additional forms, corporate resolution, etc.

My bank has no other solutions on a virtual or temporary account.

Maybe PayPal is the answer .. I'll check into it.
Mike

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 08:44 PM

mkweaver
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p.1 #8 · Client insists on wire transfer

The company I work for does international business and has many many customers from around the globe who always pay with wire transfer. We've never had a problem.
It is really safer than a check, and is made in the currency of our country.
There are fees for wire transfers. Make sure if you go that route, the payee pays the bank fees!
As was said earlier, check with your bank.

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 08:53 PM

mmurph
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p.1 #9 · Client insists on wire transfer

Wire transfers are standard for Europe and the UK. They don't understand that they are unusual in the US. I take it that is true in Canada also.

If you go on Ebay.de (Germany), etc., you will see sellers bank account info (IBAN and something else) posted publicly in their ad or profile. Try the international sales forums on Ebay for advice on how to work with wire transfers here.

I have used some clearing hoiuses in the UK to do currency conversion and convert a Paypal/Credit Card payment to a wire transfer. Too expensive and slow to do it from my US bank. You may be able to reverse the process and have them accept the wire transfer and pay you via Paypal.

There are fees involved, but at this point probably worth closing out this deal and you can add the fees/terms to future transactions.

Good luck!
Michael

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 09:16 PM

mmurph
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p.1 #10 · Client insists on wire transfer

It looks like I used www.auctionchex.com to send my payments to Switzerland and Germany via wire transfer.

I am sure you can reverse the process. There is a forum on their web site with some info. Ebay international forum will provide more info - I think that is how I found the auctionchex site

I looked at other alternatives, but fees were much higher. For example, a seller had to refuse a Paypal payment because of high fees to him.

Here is a sample Ebay auction from a seller I have purchased from before. The IBAN and BIC are the bank routing codes. SWIFT is also sometimes mentioned.

*************************************************************************************
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=150139296989

International bidders welcome, please calculate additional shipping costs . .... NO cheques! Bank transfer or cash only! No bidpay , no paypal, no creditcard.Payment must be in 7 days after the auction otherwise I will relist. All bank expenses will be chargeable to the buyer.

Seller's payment instructions
Sparkasse Lörrach-Rheinfelden, Deutschalnd, Bankleitzahl 68350048
zu Gunsten: Simon Zimmer, Girokonto Nr. 102 263 571

IBAN DE 12 6835 0048 0102 2635 71
BIC: SOLADES1LOE
BLZ: 683 500 48
Konto Nr. 102 263 571

Edited by mmurph on Nov 03, 2007 at 02:43 AM GMT

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 09:23 PM

Mark Eley
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p.1 #11 · Client insists on wire transfer

I dont know about US accounts - but the Sort (branch) code and account number is on every cheque we write.

Paying into someones account here in the UK is a very normal practice and it wouldnt worry me at all.

I have universal trouble with the US when someone won't take paypal, so I know how it feels. Direct account payments are about the only way to do business with the Germans on Ebay and that is a real pain from here.

I'm not well known here but if I can help then let me know, I have no fear of anyone having my account details

Quite how I would get it back over to you by any other means than cheque/paypal I have no idea and the bank charges my increase as a result of it now being 2 seperate transactions.

If the comapny looks legit then I would just give them the IBAN details and let them get on with it.

Failing all else - there is good old Western Union - you have no fear as they already have the files anyway. They have no fear as they are paying you for services alreay received. I have no idea what rates apply to WU though.

HTH

Mark

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 09:40 PM

Mike Mahoney
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p.1 #12 · Client insists on wire transfer

I'm starting to see this is a new light after the replies about wire transfers being so common in Europe. Did not know that at all.
Mike

Edited on Nov 16, 2007 at 04:19 PM

Nov 02, 2007 at 11:30 PM

shatterkiss
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p.1 #13 · Client insists on wire transfer

Yeah, I was about to point out that wire transfers have been the norm (as opposed to paper checks) with all the business I've done in the UK and Europe. In fact, with my video production business, we put our account info on every contract and invoice specifically to make receiving wires easier.

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 12:04 AM

colinm
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p.1 #14 · Client insists on wire transfer

It's been mentioned, but it bears repeating that you really want to check with your bank about receiving wire transfers.

Back when I was still with Wells Fargo, sending a wire transfer incurred a ridiculous "initiation fee" of nearly $100, and receiving them required a (smaller) fee and a percentage of the transfer. And they cheerfully charged an additional conversion fee for foreign funds.

In some cases, the specific account you have may dictate the terms of wire transfers. See if the banker can't convert you to a better account type if the terms are terribly unfavorable (if you're lucky, that may simply mean converting your account to the newest version of your same account type).

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 12:38 AM

Alice OBrien
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p.1 #15 · Client insists on wire transfer

My international clients all pay me with wire transfers, it appears to be the norm for Europe. I've also paid for services and products in the UK & Germany via wire transfer - again... their preferred method of doing business.

I haven't had any problems. In fact one of my biggest clients is in the UK. I think my bank also charges lower fees on currency conversion for transfers than if it was by check. Another plus... there's no waiting for the funds to "clear". An international check ... say from a US bank, is often held 10+ days before it's clear. Wire transfer - instantaneous.

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 05:35 AM

annayu
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p.1 #16 · Client insists on wire transfer

I'm based in Europe and received payments from both Europe and the US. Cheques are a BIG NO-NO for me because of the bank fees for cheques. My first check from the US was never cashed out because the fees were nearly as high as the whole amount on the cheque. It was was from a non-profit organisation in the US so they got to keep their money and I framed the cheque instead.

Direct bank transfer is what I prefer, my bank SWIFT, IBAN, BIC codes are on all my invoices. Most other small businesses here work like this too.

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 06:00 AM

Sheila
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p.1 #17 · Client insists on wire transfer

Its the norm here in Australia. All my European and Australian clients pay directly into my bank account. I buy my lenses this way. With respect, the US is way behind with electronic financial transactions. It should be noted that the information that you give to prospective buyers is exactly the same that shows on checks/cheques you happily send to them when purchasing an item. That is your account name, the BSB number (or routing number) and your account number. If you are dealing with Europe, you need a SWIFT no. All of these details are also on my invoices (like annayu) and its the preferred method of payment. I don't get hit with fees (PayPal or credit card charges) and the money is in my account with 24 hours.

Cheers
Sheila

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 10:58 AM

Mike Mahoney
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p.1 #18 · Client insists on wire transfer

Thanks again for the replies .. in particular the overseas answers as I had no idea that the European payment process used wire transfers so much. Here in North America virtually all invoices are paid by cheque.

What are the SWIFT, IBAN, BIC codes?
Mike

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 11:30 AM

Beni
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p.1 #19 · Client insists on wire transfer

It's the norm for me with European clients (I live in the UK, we aren't Europe really

), I give them my IBAN and BIC number and a couple of days later the money hits my account. They can't access my account with those details anyway. Make sure though that they pay the transfer fees.

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 06:06 PM

Sheila
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p.1 #20 · Client insists on wire transfer

Mike Mahoney wrote:
Thanks again for the replies .. in particular the overseas answers as I had no idea that the European payment process used wire transfers so much. Here in North America virtually all invoices are paid by cheque.

What are the SWIFT, IBAN, BIC codes?

Mike

I found out my bank's SWIFT code by Googling the Bank's name +SWIFT and there it was. I don't know what a BIC code is, so can't help you there. I think SWIFT and IBAN are interchangeable. I also neglected to mention that all of these financial transactions are done using my own PC and internet banking, therefore avoiding lining up in a bank. I pay all our bills via "BPay" (direct debit payments) and cannot recall the last time I used a cheque to pay any account. We in Australia are getting more of a cashless society every day. I buy groceries, petrol, shoes, clothing and yes, lenses, via EFTPOS "electronic funds transfer ..don't know what POS stands for

" ) using my debit card with a Personal Identification Number which is definitely not to be scratched on the card as a reminder

There is no more internet fraud in Australia as there would be in the US or Canada as there are many safeguards in place.

Cheers
Sheila

Edited on Nov 16, 2007 at 04:19 PM

Nov 03, 2007 at 11:24 PM

Bill Weaver
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p.1 #21 · Client insists on wire transfer

POS = Point Of Sale, at least it does in the USA.

Edited on Nov 16, 2007 at 04:19 PM

Nov 04, 2007 at 03:37 AM

annayu
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p.1 #22 · Client insists on wire transfer

Nov 04, 2007 at 05:27 AM

EA6B
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p.1 #23 · Client insists on wire transfer

Very common in Europe.

Edited on Nov 16, 2007 at 04:19 PM

Nov 04, 2007 at 10:52 PM

mickr7an
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p.1 #24 · Client insists on wire transfer

I get all my payments via wire transfer as most of my clients are foreign. It's not a problem. If you are worried you can simply open an account just for transfers and then move any money into another account as soon as it is deposited. That way the account is always empty.

Edited on Nov 16, 2007 at 04:19 PM

Nov 05, 2007 at 03:10 PM

marks.
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p.1 #25 · Client insists on wire transfer

My only suggestion is to include the bank fees for international wire tranfer with your invoice. I do this all the time with international clients that do not draw funds from a US based bank. Like this the $15-20 fee don't come out of your pocket but are additional. Otherwise, i barely wrote or received checks in Germany, maybe a bit more in France in the 80-90's, the US are way behind with direct payments to bank accounts (BTW, Conde Nast is just in the process of changing that).
best
Mark

Edited on Nov 16, 2007 at 04:19 PM

Nov 05, 2007 at 03:32 PM


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