Although receiving money from overseas might appear simple, there are hidden costs, bad exchange rates, and convoluted transfer procedures that can drastically lower the amount that reaches your account. To guarantee they get the most out of accepting money from abroad in 2025, people and companies need to adopt a more calculated strategy.

This guide breaks down efficient cost-saving strategies, describes the precise components of incoming payment fees, and offers practical suggestions to optimise your international payment process.

Recognising the Elements of Incoming Payment Charges

There may be several layers of charges when you receive money from overseas, some of which are obvious and some of which are not. These consist of:

1. Getting Bank Fees

When processing an incoming international wire, the majority of banks charge a set fee, usually ranging from $15 to USD 30. Without warning, this is subtracted from the transfer amount.

2. Bank Intermediary Fees

The payment typically passes through one or more intermediary banks, each of which charges $10 to $30, if it uses the SWIFT network. Both the sender and the recipient are unaware of the silent deduction of these fees.

3. Exchange Rate Markups and Currency Conversion Fees

Conversion occurs at less-than-ideal rates if the funds arrive in a currency other than the one in your account. Markups of 1–4% below the mid-market exchange rate are applied by banks or platforms. This is among the biggest unstated expenses.

4. Payment Provider Fees

The amount you receive may be further reduced by additional fees that money transfer services may impose, either in the form of flat receiving fees or by adding extra margins to exchange rates.

Practical Ways to Prevent or Lower Incoming Payment Fees

1. Make use of online payment systems as an alternative to conventional banks

• Compared to traditional banks, online platforms such as Wise, Grey, Payoneer, and PayPal typically offer much lower fees and more transparent pricing.

• Smart: Incoming USD wire transfers cost just $6.11, and USD ACH receipts are free

• Grey: Virtual accounts in USD, EUR, and GBP that completely avoid international wire fees and permit local transfer receipts.

• Conventional banks: They often offer lower exchange rates and deduct fees without disclosing them.

• Selecting digital-first services offers improved speed, control, and transparency regarding real costs.

2. Get paid in the same currency as your account

Receiving foreign currency into a local currency account is one of the most expensive errors:

• Request that payers send money in the same currency as your account (for example, USD to a USD account).

• To prevent instantaneous, automated conversions, open multi-currency accounts if you deal with clients in different nations.

• Steer clear of forced currency conversions to avoid embedded exchange rate markups, particularly those between 2 and 4.5% found in standard banks or services like PayPal.

3. Make use of virtual or multi-currency accounts

• Bypassing the conventional banking system, these accounts enable you to receive money in multiple currencies like a local.

• Wise: Provides local bank information for more than 20 currencies, including ACH, IBAN, SWIFT, BSB, and others

• Grey: Virtual bank accounts are free of cross-border fees in major currencies.

• Payoneer and Revolut also provide multi-currency accounts for businesses and independent contractors.
  
  
• Using a solution like BizPay by Transfi can have a significant impact on companies handling regular international receivables. With a single, compliant dashboard, BizPay, which was created especially for cross-border business-to-business transactions, provides access to local currency accounts, quicker settlements, and reduced FX conversion costs.

• When interest rates are favourable, funds can be held, converted, or moved to nearby banks with little cost. 

4. Make Use of Regional Payment Methods

Processing delays are reduced and intermediary fees are avoided by using local rails like ACH (USA) or SEPA (Europe). To save time and money, digital platforms use these local networks to route payments. A local payment rail guarantees:

• No unforeseen deductions were made in the middle

• quicker clearance periods (same-day or next-day)

• Reduced total transfer expense. 

5. Use fee-free accounts or bargain over receiving fees.

Incoming fees are frequently waived by banks or platforms for:

• Large numbers of transactions

• Premier or business account holders

• Packages for corporate services

• If you receive money regularly, ask your bank for fee exemptions or think about moving to platforms like Wise or Grey that make charges obvious.

6. Combine Payments to Lower the Frequency of Fees

Every small payment you receive could result in a new fee. Rather:

• Ask clients for large transfers.

• Settlements of invoices in batches over a quarter or a month

• Cut down on the frequency of exchange rate applications

• This reduces the need for frequent currency conversions as well as flat transfer fees.

7. Refrain from Using Credit Cards

• Receiving money by credit card is convenient for the sender. 

• Processing fees can range from 3 to 5%.

• Could involve unreported exchange rate losses.

• It is not the best option for bigger or more frequent payments.

• ACH or bank transfers are always the more effective choice.

Conclusion

Reducing fees on incoming foreign payments requires a series of habits rather than a one-time solution. You can keep more of your profits by utilizing local rails, aligning currencies, converting to digital-first platforms, and combining payments.

Global-ready infrastructure from companies like Wise, Grey, Payoneer, and others reduces the expense and complexity of cross-border payments to a large extent. Using the appropriate tools is essential to optimising value as companies and professionals become more global.

FAQs

1. Which method of receiving international payments is the most economical?

Utilising digital platforms such as Wise or Grey, which provide multi-currency accounts and lower fees than traditional banks, is the most effective method. Steer clear of using credit card processors or SWIFT to receive payments.

2. How can I prevent fees associated with currency conversion?

Either use a multi-currency account, which allows you to hold and manage multiple currencies without automatic conversion, or ask the sender to pay you in the currency that is native to your account. 

3. Is it safe to send and receive money internationally using virtual accounts?

Indeed. Reputable websites with bank-grade encryption, such as Wise, Grey, and Payoneer, are subject to financial authorities' regulations. For freelance payments and international business, they are highly regarded.

4. Should I accept payments as they come in or combine them into one lump sum?

Consolidating payments is more economical. Over time, there will be significant savings because fewer transactions translate into fewer fixed fees and less frequent exposure to currency conversion.

5. Can I claim these foreign fees as a tax deduction?

Indeed. All allowable processing and receiving fees are deductible business expenses that lower your taxable income if you're working as a consultant, freelancer, or business.