Multi-currency account for business – what should you know?

In the world of business, global borders are rapidly shrinking. This means you may be located in one country but sell in several others, usually through an online or e-commerce store.

In such cases, you need to be able to accept payments from your customers in their local currency, which is different to yours. For this reason, the best option you have is to open a business multi-currency account or foreign currency account that facilitates a smoother transfer of funds. On the other hand, using separate accounts in each different country can be a cumbersome and challenging process. 

Below, we explore multi-currency accounts for businesses, how they work, what you need to do to open one, and some pros and cons. And, of course, we answer the question: What is the best multi-currency account for your unique business needs?

Keep reading to discover more.

What is a multi-currency account?

Foreign currency accounts or multi-currency accounts are merchant bank accounts that enable business owners in one location to receive payments in multiple currencies from other countries with different currencies. Such payments may be received in the merchant’s business account in the currency of their customers’ choice.

These can include currencies such as US dollars, British pounds, euros and more. However, the payments usually go through an exchange rate conversion process. This is often done at a rate offered by your payment services provider, which means you can receive money paid to your business and transact with it.

How does a multi-currency account work?

A multi-currency account enables businesses to serve international clients. These clients can pay you online via a credit or debit card in their local currency. If this currency differs from the currency used in your country, it can be converted to your local currency, and you can use it to make transactions.

In some cases, you can keep the money in foreign currency and convert it when you want to. In particular, you can use your multi-currency merchant account much like any other bank account. For example, you can make cash deposits and withdrawals, do online banking, transfer money, send and receive payments, and carry out international transactions – all without needing a separate account for each currency received. It works similary to a personal savings account, although it is specifically aimed at merchants and business owners.

How to open a multi currency account as a business owner

To open a merchant multi-currency account, you must first open a merchant account with your preferred payment services provider. They will often request important information about you and your business from you.

It may include but is not limited to the following criteria:

• Personal information (name, birth date, address, contact information, etc.);
• Cash, debit card or bank account information;
• Government-issued identification;
• Business details, such as the name, registration number and business registered, address, registered owner(s) or directors, etc.

How to use a multi-currency account

When you sign up for a multi-currency business account, you should check that your payment services provider enables you to accept payments. These should be in the same currency based on your location and in different currencies of your customers’ choice.

You should also be able to get a merchant business account number and a merchant business card so that you have easy access to your money. Remember that you can carry out online banking with the standard functionalities attached to this service, such as making bank transfers. You can also withdraw cash from your account using your card.

In essence, the ability to receive international transfers and transfer money for various reasons in your currency equivalent makes it easy to use a multi-currency account just like a normal bank account. However, you should always read the fine print and be aware of the cost and fees you may need to pay for every transaction, such as transaction fees.

Advantages and disadvantages of a multi currency account

Using a multi currency account for your business to do business banking and carry out quick international transfers is not the right solution for every business.

However, it is the best choice for businesses that regularly accept multiple currencies. For this reason, it’s essential to consider the pros and cons of using this type of account to make an informed choice for your business.

Here are the factors worth considering:

Advantages

A merchant multi currency account is:

• Convenient as all foreign transactions enter and leave one account as opposed to many accounts;
• It simplifies your accounting processes;
• It can be cost-effective as you avoid currency conversion losses due to poor exchange rates;
• Easy to open and use for you while you offer ease and convenience for your international customers;
• Protected, depending on the service provider you choose to work with;
• It is also quick to carry out international transfers.

The convenience of opening a multi currency account is undeniable. It facilitates a smooth transfer of international funds in one place easily and hassle-free.

Disadvantages

A few cons to consider related to opening a pound or dollar account with multiple currencies attached include:

• Various types of fees;
• Usually prohibits or provides restrictions on investment options;
• Interest, if earned at all, is earned at low rates;
• You may be required to show high minimum balances.

However, it’s clear that a multi-currency merchant account has advantages that outweigh the disadvantages, and it is definitely worth considering if you want to serve an international client base.

What is the best multi-currency account for businesses?

When you want to accept payments in a currency other than your local currency, you’ll want to partner with the best multi-currency merchant account for business in the industry.

As an industry-leading payment services provider, myPOS takes centre stage in this regard. When you open a multi-currency merchant account, which you can do at no cost, you will also get a free IBAN and a free Visa business card.

Furthermore, you will enjoy instant access to your funds received from multiple channels. International bank transfers, whether in dollar, pound or euro, are cost-effective and competitive.

Wrapping up

Using a multi-currency merchant account is essential for businesses that transact internationally and accept payments from international clients. Setting up and using your multi-currency merchant account can be quick and easy. And all that with myPOS is absolutely free.

Considering the pros and cons of these accounts, it’s clear that they’re an outright winner for businesses seeking global expansion. That’s what makes them a worthwhile choice.

This is especially true when you partner with the right service provider to ensure you have everything set up and in place to accept international payments easily.

Frequently Asked Questions

Do I need multiple merchant accounts?

With a multi currency merchant account, you do not need several separate merchant accounts, saving you a lot of inconvenience and money in the process.

Should I open a multi currency merchant account?

If you are a business that accepts payments in several currencies, opening a multi currency merchant account is a cost-effective solution to running your business in a more streamlined way.

How quickly are funds settled in a multi currency merchant account?

Depending on your service provider, it is possible that you can wait between one and several business days for your funds to be settled. However, myPOS is one of the leading service providers offering instant settlement of funds, meaning real-time accessibility to your money.