Last Updated on 1 year by Komolafe Bamidele
Do you want to have a foreign account that allows you to receive payments in USD, euro and pounds but you are limited by the fact that you are not a resident of those countries?
However, there are legal ways you can possess a foreign account even if you are not a resident with which you will be able to send and even receive payments with ease
However, in this guide, we are actually talking about the best ways you can open a foreign bank account as a non-resident for FREE, with emphasis on the word free.
Yes, it is really possible and I will be showing you two ways you can do so.
Which Countries Allow Non Residents to Open Bank Accounts?
There are some countries that would allow non-residents to open a bank account even without being physically present.
The process may involve you processing some necessary documents such as tax documents as well as others.
So counties that allow such include:
- United States
- Germany
- Belgium
2 Easy Ways To Open a Bank Account in the US as a Non-Resident
The easiest and cheapest (freeway actually) to open a bank account in the United States as a non-resident is by using third-party platforms that give you the full functionalities of a bank account.
These third-party platforms with the help of their synchronized banking system help you receive and send your money across major currencies in Europe and America which are Euro, Pounds, Dollars and some others.
You have nothing to fear as such institutions are backed by law and have their foundations on the laws governing the banking system of the country they are based.
So there can’t be issues such as missing funds or inadequacies.
Today, we shall be taking a brief look into 2 of such platforms I recommend.
With them, you can easily own a foreign bank account without being a citizen or even a resident and still be able to send or receive money with ease.
The two platforms we shall be reviewing briefly today are
Payoneer: Pay & Get Paid Worldwide
Payoneer is a cutting edge fintech solution that gives you the ability to receive money into a personalized foreign account and transfer it into your local account or withdraw directly from your Payoneer account.
It is a top choice for many Africans as it is extremely easy to get started with. In just 30 minutes, you should have verified your account and have bank accounts in most of the major currencies.
This makes it extremely easy to receive money via bank transfer from overseas. Just as it is mentioned in the title, it is absolutely free to open a Payoneer account.
It is also free to send and receive payments from one Payoneer account to another.
Also, there are a lot of other brands, businesses and startups that are either partners or integrated with the Payoneer system such as Upwork, Fiverr, Airbnb and some affiliate networks, with these, it is usually free to receive money.
You are charged 3% for card payments to people without a Payoneer account and 1% for E-check payments.
As you may want to, transferring funds from your Payoneer account to your local bank account will only occur at a cost of 2% only when the currencies are different.
However, if the currencies are the same, you incur a flat fee of $1.5 As for now, there are no maintenance fees as you will only be charged whenever you use any of their services.
Also, if you decide to close your Payoneer account, there are no charges or fees.
Pros of using Payoneer
Price: when you take a look at the pricing it is absolutely fair especially when you are not planning to accept credit card payments.
Customer Service: The Payoneer customer service system is very responsive with a lot of support documents such as a support service page, a community like a forum and a blog.
Cons of Using Payoneer
Here are some of the things you may not like about the Payoneer platform
Lack of payment features: in terms of integration with payment receiving services such as POS and payment gateways. Payoneer lacks a whole lot of features.
Account Freezing and Termination: just like other e-banking platforms, Payoneer reserves the right to hold your funds if they track or even suspect any fraud-related activities with your account.
Wise Formally TransferWise
Transferwise which is now called wise is a top-notch fintech company that provides a cheap way to send money from the United States to over 60 countries of the world.
Currently, the currency conversion rates are some of the best you may find.
Pros of Transferwise (wise)
Extremely Fast Delivery (Usually within minutes): This is one of the best advantages of using transferwise when compared to other alternatives.
However, such quick delivery is possible for transfers using a debit or credit card.
Relatively Low Fees: the pricing strategies for many countries include a combination of both a flat fee and a percentage.
For instance, you may see pricing such as $1 plus 0.1% of what you are transferring.
Just like every other platform, credit card fees are usually higher. All other charges that you may incur using transferwise are those as regards third parties such as your bank in the case where you are transferring from your bank to wise.
No Rate Markups: this is another great advantage for international merchants as transferwise will not charge you an exchange rate markup fee.
It uses mid-market rates which fluctuate from minutes to minutes.
Cons of Transferwise
They have a Slower Bank Transfer Process than other Providers: usually, transfers that are funded through the bank account medium can take up to a week with the fastest speed talking about 3 to 4 working days.
Conclusion
Do not be discouraged when you need a US account to receive payments.
I usually advise people to go with Payoneer for receiving international payments through bank payments. It is extremely easy to get started with.