How do you receive your money on international orders?

S

speartip knives

Moderator
I am curious as to how most of you receive your money on international orders? I usually require a deposit and then require the remainder prior to shipping. I have considered a wire transfer, however, the fees for a wire transfer are very high . I usually use paypal but I have customers that have difficulty processing, that is, there credit card is not accepted. I am considering just having them send me a certified check but I know it can take up to 3 weeks to clear. I would like to know some options and what works the best for most people.
Thank you
Jeff Maron
 
Bank wire transfer is expensive, but for transactions outside North America, there isn't much else secure. C/C may clear initially and come back as a charge months later. Same with cheques - even certified if they were obtained (or created) fraudulently. PayPal can be contested and - at best tied up for months - or at worst, declined after months for the stupidest of reasons.

There are untold numbers of great people who are also a pleasure to deal with, but that small dishonest percentage overseas are generally beyond your 'reach'. I'm trying to say that just because the money is in your hand, does not mean its going to stay there. Don't risk what you can't afford to lose.

Rob!
 
Western Union.. Is the best way IMO. Unless you know the person well and have dealing with them etc. WU is fast cash for you and secure.. no way for charge back etc.
 
I have had good results with Western Union from overseas buyers.
There are none of the problems like the first poster listed. I have used it for Russia, Japan, South Africa,
Pakistan and some S. American country's.

Laurence

www.westsidesharpening.com/
 
This is a summary of my experience of 25 years of doing business internationally:
  • Paypal is a non-starter because of difficulty in processing and the possibility of a charge-back months later. Also, it is easy to get a credit card processed through paypal that is stolen. In the case of a stolen card, you as the vendor eat the loss.
  • Processing a credit card has the same problems associated with Paypal. Only it is worse because the bank has access to all your money, not just one account in the case of Paypal. I had a $15,000 sold and shipped to Indonesia and they used a stolen credit card. I found out three months later and I ate the loss.
  • International money orders or certified checks are too easily counterfeited. Also, these can initially clear your checking account, then come back weeks later and the funds removed.
  • Western Union is an option for now and then. If you do business overseas with any regularity, you will find that Western Union itself will investigate you and require proof of the business you are doing. Been there, done that. While you are providing WU with documentation, they are holding your funds. As I said, been there...done that.
  • Under no circumstances do any kind of letter of credit, or accept any letter of credit. Even if you have a bank locally that understands how they work, you better have your own attorney to help you. Very expensive and very difficult. I had a very big, very well-known knife company screw me out of $190,000 in funds because of a letter of credit.
  • The only way to successfully get paid where your funds will not be held and you will not have any problems is a wire transfer. The fees are less than Paypal. The fees are similar to Western Union and there is little risk. When you have the funds, you have them and no one can take them away. Remember that if you do international transfers of money with any regularity that Homeland Security will be watching. Rightfully so.

If you insist on a wire transfer, then you will sort out the potential problems before they become problems.
If someone won't do it, then don't do the deal.
Some business is just not worth the head-ache.
Build the cost of the wire into the price.

This is what I know.
Hope it helps.

Tim
 
USPS Money Order. For those that don't want to go another route.

USPS money orders can be cashed out for value at any post office, no waiting to see if it clears your bank. A regular MO can take up to 7 days for the actual money to be deposited into your account. It is basically like a check written on the bank guarantor. There have been cases of fake ones from Western Union and others. With the MO from USPS it is cash in hand when they cash it for you!
 
C Craft said:
USPS Money Order. For those that don't want to go another route.

USPS money orders can be cashed out for value at any post office, no waiting to see if it clears your bank. A regular MO can take up to 7 days for the actual money to be deposited into your account. It is basically like a check written on the bank guarantor. There have been cases of fake ones from Western Union and others. With the MO from USPS it is cash in hand when they cash it for you!
Click to expand...

Any piece of paper can be counterfeited , How do the counterfeit a Western Union transfer? The hand you the cash. Or they won't.
What's your experience with this problem?

Thanks.
Laurence

www.rhinoknives.com/
 
rhinoknives said:
Any piece of paper can be counterfeited , How do the counterfeit a Western Union transfer? The hand you the cash. Or they won't.
What's your experience with this problem?

Thanks.
Laurence

www.rhinoknives.com/
Click to expand...


True any piece of paper can be forged. Jeff was asking about ways to accept payment, and after going back and re-reading his post it was more about (international orders, my bad for not catching that).MY post wasn't referring to an actually wire transfers. There is a way to make a money transfer with Pay pal of sorts. Similar to wire transfer and it can be done with any credit card!

The experience I have had with MO was not actually a Western Union MO but from another company. I deposited the MO in my account and was told by the bank that I had to wait for up to 7days for actual money to be in hand. It actually only took three days but I got a notice that the bank that had been the grantor on the money order stated this was a fake and not actually one of their MO's.

I requested something in writing for this transaction from my bank and emailed it too the man who had purchased the knife with the MO. After contacting the man who had attempted to buy the knife with a bogus MO that his MO was a fake, and telling him that he was the victim of a scam,with an email, and requesting that he follow up on his end.

I never once thought about I was being scammed at the time but I never received a reply from the man who had attempted to make this purchase, despite numerous attempts after that point to contact the guy, I never heard from him again! Therefore I am assuming he was out to scam me. I found out later that their was a bunch of fake MO's out there from various companies, their was a 20/20 investigation on it.


A MO from the post office is either cashed at the counter or not. I don't have to deposit and wait to see if it comes back OK or not!

In my experience if the crook is good enough they can pretty much scam you these days any way they want, on paper, by credit card or by electronic means! It is not only buyer beware it is, seller beware. But this is the world we live in these days! So take it for what I intended it for advice and if you got better advice then follow it!
 
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