Home – New Forums Starting your journey Open a bank account in Australia for non-residents?

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  • #979286
    DarianCulbert
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    Hi my soloists!

    Our business is operating in Vietnam but many of our clients come from Australia. If they transfer money from an Australian bank to a Vietnam bank, it will take time and a lot of fee! We can also accept credit cards payment but fee again for the banks/intermediate organizations here to process the payment by credit cards! It is from 3-3% of the amount sent!

    Is there anyway that clients can make the payment without paying fee please? (not cash as we need payment in advance).
    If you pay locally in Australia by credit cards, do you get charged? If so, how much for the charge?
    Does any bank in Australia provide payment getaway which helps bank account holders accept payment by credit cards from clients without any fee?

    Thanks and I hope to hear from you soon!
    Darian

    #1113286
    Rico
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    You can set up a bank acccount in Australia if you go in person to an Australian Bank. Both Commonwealth Bank and ANZ have offices in Ho Chi Minh City and Hanoi, so it is worth to ask them if you can open an account from overseas.

    Once you have a bank account, you may be able to have a merchant account (please double check this). You will pay only few cents each payment you receive, but you will pay several hundred dollars each year to maintain your account. If at the moment you pay less than $1500 in bank charges a year, I’d suggest to keep operating as you are doing now. Otherwise go to ask to the banks, and they will give all the options.

    For transfers over $300 western union is cost effective, but no one will send you money with western union without knowing you well, as they don’t have any cover.

    #1113287
    LucasArthur
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    Hi Darian

    Sweet www, want to go on a cruise now.. LOL

    May i ask, what form of payment options do you offer now? and if you use credit card, cant the 3% surcharge on cc be absorbed? it opens up the old adage (well not that old as we have not been able to do it til recently) of whether you should charge to accept credit card payments or absorb the cost?

    Most will absorb, for simplicity of payment and to entice others to pay quicker and potentially higher $$$ spent as its not ‘their money”..

    Rico had great suggestion as i know ANZ are doing a massive push through the asian corridors and vietnam was earmarked.. although i am not sure how this works with cross border transactions! must look into that.. also an account held in vietnam may not be ‘recognised’ in australia?? must also check that…

    Look forward to hearing how you have gone.
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1113288
    DarianCulbert
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    Thanks Rico & Jason!

    At the presents we are offering customers with various forms of payment such as credit cards online, bank wire transfer, Paypal, Moneybookers, and Western Union too! But 100% of our clients use credit cards so we often use credit card payment online. However, the fee that we have to pay the company to process the payment for us is 3.5% of the amount paid.
    If I absorb that fee into the prices, of course our prices will be higher than our competitors so I am looking for a way which can reduce this fee as much as possible!
    Do you have any idea to solve this problem?

    #1113289
    SmartBizBlog
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    Highly doubtful you will get a merchant account in Australia without having an Australian credit rating…

    Otherwise, you can always switch over to 2checkout or paypal – who seem to have lower fees?

    #1113290
    kathiemt
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    Fees paid here in Australia for a merchant account relates to an annual fee (for payment gateway), monthly fee (for merchant account) and then around 2.1-2.4% per transaction. So it definitely does add up.

    I know that Paypal charges 2.4% on payments I receive here in Australia. If it’s similar to you, I’d stick with Paypal and provide some kind of incentive for people to pay that way. They don’t have to have a Paypal account to pay by credit card so I’d encourage that avenue.

    A cheaper merchant option here in Australia is stratapay.com.au but I suspect you actually have to be operating here in Australia to get an account with them.

    #1113291
    Rico
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    If you come to Australia, you can open a bank account. You just need your passport and a couple of other IDs, like a credit card, driving license, etc. if you go to the commonwealth bank web site there is a list of suitable documents. When you have a bank account, you can easily get a debit card. At that point you can ask your customers to do a bank transfer, which costs nothing. You could transfer the full amount you are holding in your australian bank account once in a while to yourself with an online transaction using western union, total cost is $7! You just need to Australia on holiday at least one time :D

    Other solution may be to held the money in your customers credit cards, without actually taking it (like security deposits in hotels), and ask them to pay you cash when they arrive. This may even be a selling point for you. I am not sure how this can be done, but hotels and reservation centres do that all the time.

    #1113292
    kathiemt
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    Actually Rico, I think it might take more than that. They might be able to open a personal account perhaps but not a business account without more information. They would have to have proof of registration of their business and I think they would need to find out a lot more about what’s involved. Perhaps Austrade is a good place to visit for something like this.

    HSBC Bank is another one to consider as I believe they have branches in many countries and might be able to assist.

    #1113293
    DarianCulbert
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    Hi all for your helpful advice!
    I think Kathie is right because I may open a personal bank account on my trip to Australia but not business account!
    I also checked with Paypal and its fee for businesses in Vietnam is higher than Australian businesses!
    For example, for monthly sales from $10,000.01 USD – $100,000.00 USD the payment fee is 3.2% + $0.30 USD.
    So I think we will stick to Onepay which is not famous in the world but it represents MasterCard in Vietnam and it is used by Jetstar and other big firms here with cheaper fee!
    Not sure if I miss something better :-)

    So what is your advice for absorbing the fee into the price?
    For a cheap cruise around USD 100 per person, if I absorb the fee, it is just around USD 103 per person and it looks acceptable but how about for a luxury trip like USD 500 per person? If I absorb the fee, it will be USD 515 per person already and if people don’t know that the payment fee was included, they will go with other cheaper ones which add the payment fee later?
    Hope that someone here can give me good advice on this please!

    Thanks and have a lovely weekend!

    #1113294
    kathiemt
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    Why not advertise that there are no ‘hidden costs’? What they see is what they get. No nasty surprises later on, something like that?

    #1113295
    DarianCulbert
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    Thanks Kathie!
    I did state “No hidden fees” but competitors also state “No fees hidden” :-) although payment fee will be added when people make the payment!
    I think I will put something more such as “No payment fee” ;-) What do you think?

    #1113296
    kathiemt
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    Yes, something like ‘all inclusive, no additional payment fees’. Of course, you’ll need to make sure that there isn’t anything extra they need to pay to ensure that is the case.

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