Payment Methods for Educational Institutions Accepting USD Payments
3 minutes read
As an educational institution, you know receiving international USD payments is a challenge. There are many factors to consider, like fees, speed, and convenience. You don’t want to be stuck with a payment method that delays your payments and charges high fees.
In this blog post, we’ll discuss five popular ways to receive international payments for your school. We’ll compare the pros and cons of each method so you can choose the one that’s right for you. Let’s explore these options together, ensuring you have all the information to make a smart choice.
1. Wire Transfer via SWIFT for Receiving International Payments
Wire transfer through SWIFT has been the go-to method for receiving international payments. It’s a trusted but expensive method. Transaction fees are 1-2%; additional fixed fees can be thousands of rupees per transaction. Plus, hidden banking fees may increase the cost of receiving USD. It may also take several days to be transferred to your account.
Despite these drawbacks, many educational institutions choose wire transfers for their security and reliability. To know more about how SWIFT works, read our blog.
2. Credit Cards for Receiving Cross-Border Payments
Credit cards are popular for educational institutions to receive USD currency payments. They are quick and convenient for both parties involved. However, there are some downsides to these transactions. Their fees can be high, up to 2-4%, impacting profit margins. Processing time may also take several days, affecting cash flow.
3. PayPal: A Convenient Option for Receiving International Payments
Educational institutions now rely on platforms like PayPal to receive their cross-border payments. PayPal is convenient because you don’t need to visit a bank or deal with paperwork. You can easily open an account online by submitting the required documents.
Remember, PayPal’s support for different currencies may vary. Also, transaction fees, usually 3-5%, can affect your earnings. So, compare the fees and supported currencies before choosing PayPal.
To learn more about PayPal, check out our blog.
4. Payment Gateways for Receiving Cross-Border Payments
Payment gateways like Skrill and Stripe are popular for receiving USD currency payments. They integrate easily with platforms like Amazon, eBay, and Alibaba, making transactions easier. The funds usually reach the seller’s account within a few days, which is a major advantage.
But payment gateways have limitations. They may not support all international payment methods. Also, watch out for currency conversion fees of about 2%.
5. Virtual Multi-Currency Accounts for Receiving International Payments
Educational institutions now opt for virtual multi-currency accounts to receive international payments. These accounts help manage funds in different currencies, which is helpful for global businesses.
Compared to traditional banks, virtual accounts offer faster and cost-effective alternatives.
These accounts can also act as Online Payment Gateway Service Providers (OPGSP), collecting international payments and converting them to INR. This ensures better exchange rates and saves exporting businesses money.
With Winvesta, businesses and individuals can open multi-currency accounts with a local US, UK, Canadian and European bank account number. Receive payments from 180 countries in 37+ currencies and withdraw funds to INR in as less as 1 day at charges starting at 0.99%
Comparison at a Glance
| Winvesta MCA | Credit Card | PayPal | Payment Gateway | SWIFT | |
| Payer Fee | 0% | 3% | 0% | 0% | $30-$50 |
| Receipt Fee | 0.99% | 1.5%-3% | 4.4% + $30 | 3%-4.5% | $20-$40 |
| FX spread | 0% | 3%-5% | 3% | 2% | 3%-5% |
| Withdrawal to India | $0 | $0 | $0 | $0 | $0 |
| Total | 0.99% | 7.5%-11% | 7.4% + $30 | 5%-6.5% | upto 5% + $90 |
| Speed | In as less as 1 day | 2 to 7 business days | 2 to 5 business days | 2 to 7 business days | 2 to 7 business days |
| Rejection Rate | Low | High | Low | Medium | Low |
Conclusion
Selecting the right payment method to receive money from the United States is helpful for your educational institutions. Once you find the perfect way to get paid, you can focus on growing your business and achieving awesome financial success.
1. Wire transfer via SWIFT is reliable but expensive and time-consuming.
2. Credit cards are convenient but have high fees.
3. PayPal is popular but charges fees and has currency limitations.
4. Payment gateways like Skrill and Stripe integrate well but add fees for currency conversion.
5. Virtual multi-currency accounts, such as Winvesta’s, offer cost-effective solutions with faster transactions. By considering fees, speed, and convenience, you can optimize international payments and focus on delivering excellent services.
Open your Winvesta account today!
Disclaimer: The article references PayPal, which owns its own trade