Key Takeaways
- You can potentially save time on transfers while cutting down on FX conversion costs by receiving euro-denominated payments as a US company.
- Multi-currency IBAN accounts can help you accomplish this.
- At Payset, we offer an easy way to accept inbound euro transfers.
If your US company is active in the European market, you most likely need to receive euro payments from clients, partners, and suppliers.
It can be difficult and costly to do this through the traditional banking system. Some European banks may not offer services to US-based clients, and US banks may offer few euro-focused services. Even if you succeed in getting a euro account, legacy banks may provide costly and slow transfers.
Fortunately, electronic money institutions (EMIs) like Payset simplify the process, allowing you to receive EUR payments as a US company.
Payset clients get access to a multi-currency IBAN account that allows you to send, receive, and hold the euro (EUR) as well as the US dollar (USD) and dozens of other currencies, all from a single account.
Plus, we can often route transactions through European payment options, including SEPA, in order to provide you with fast transfer times at affordable rates.
Here’s how to accept euros as a US business — and why you should do it.
Why US Companies Need to Receive EUR
The EUR-USD payment gap can create significant challenges. Without the ability to handle euros, any company doing business in Europe will face high FX and transaction fees, long settlement times, and other complications.
Those challenges negatively impact your company’s cash flow and daily operations, leading to payment delays, higher expenses, and more time spent reconciling accounts.
Making sure that your US business can receive euro payments is also important to customer satisfaction. Receiving euros can help preserve customer relationships and improve sales conversion rates, especially if your audience transacts in euros natively.
Sometimes, the solution involves converting euros into US dollars at any price — but it doesn’t need to be that way. The right payment platform can support international business payments between the US and EU without losing the main benefits of euros.
The Benefits of Receiving Euros in a Multi-Currency Account
What can you expect if you open a multi-currency account for US businesses and start receiving euro-denominated payments? There are a few potential benefits:
- No forced USD conversion: By holding any euros you receive, you can avoid the cost of converting to USD and spend your EUR balance at a later date.
- Flexible FX rates: If you eventually convert your euros, you can wait until exchange rates are favorable or arrange your trades to take advantage of Payset’s tiered FX rates.
- Fast SEPA transfers: You can expect euro transactions to complete in seconds via SEPA Instant transfers (or 1-2 business days with regular SEPA transfers).
- Simpler accounting: Separating EUR and USD balances can streamline your finances, simplifying income tracking, expense tracking, account reconciliation, and taxes.
- Global access: Combining a euro balance with global payment networks like SEPA and SWIFT ensures that you can transact with most of the world while also providing payment options that cater to your customers and clients.
- Online access: Legacy international bank accounts for US companies are available. However, Payset and other electronic money institutions (EMIs) provide online multi-currency accounts, all without the need to visit a physical branch.
Options to Receive EUR as a US Business
European IBAN for US Companies
European International Bank Account Numbers (IBANs) are standardized account identifiers that are assigned to bank accounts in order to route international transfers.
It’s important to understand that an IBAN is only an identifier. An IBAN does not guarantee that an account supports euros. On the other hand, some EUR accounts for US companies may support euros without using the IBAN scheme. But generally, accounts with European IBANs provide the best access to euro payment networks and banking infrastructure.
So, can your US company get an IBAN tied to a European country? Often, yes. Payset offers IBANs tied to specific countries to eligible US companies. Here’s how it works.
Multi-Currency Accounts
Multi-currency accounts are accounts that are capable of sending, receiving, and holding several different currencies, often including the US dollar, the euro, and more.
Sometimes, multi-currency accounts include more than one IBAN or account number so that you have greater overall flexibility. Though Payset generally provides just one IBAN, we may provide additional IBANs to clients who need one at our discretion.
In short: Payset offers US companies global business accounts so you can use multiple currencies, including the euro, from one easy-to-use dashboard.
Payment Methods — SEPA, SWIFT, and ACH
When receiving euros, you may need to consider which payment rail suits your needs, and whether it’s supported by your cross-border payments solution. Options include:
- SEPA Credit Transfers: SEPA offers fast and inexpensive euro transfers covering the SEPA Area, including all EU member countries, the UK, and some non-EU countries. This option usually takes 1-2 business days and typically costs just a few euros.
- SEPA Instant Credit Transfers: This option settles payments in just seconds, with costs and geographical coverage similar to standard SEPA transfers.
- SWIFT: Wire transfers sent over the SWIFT network can be used to transfer euros both inside and outside Europe. This option is almost always slower and more expensive than SEPA, typically costing 10-50 USD per transfer with 1-5 day settlement.
- Automated Clearing House (ACH): ACH is only used for local US dollar transfers and is not used with euros. Costs are low, and transfers typically settle in 1-3 days.
The bottom line: SEPA is usually the best choice when it’s available, as it offers better fees and faster transfers. But if you plan to perform USD-EUR business payments outside of the SEPA Area, you’ll probably need to use SWIFT for its more global reach.
How Payset Can Help
With Payset, you’ll receive a multi-currency account that lets you send, receive, and hold over 34 currencies across 180+ countries, including but not limited to EUR and USD. Plus, you’ll be able to exchange up to 38 currency pairs on our built-in FX trading platform.
We also provide access to local European payment rails, and we may route euro transfers via SEPA, SEPA Instant, and other networks without any action from you. See this page for details.
We see this as the best way to help you send and receive euro payments rapidly and at competitive rates without the obstacles of traditional banking.
Sign-up is free for all users, and we’ve waived monthly fees for a limited time. Contact us to find out whether this offer is available — or get started today.
FAQ
Can a US company have a European IBAN?
US bank accounts don’t use IBAN identifiers, but US companies can obtain multi-currency accounts with IBAN numbers linked to various European countries.
It’s important to understand that accounts with IBANs are not necessarily linked to European countries and do not necessarily provide support for euros. Your payment service should explicitly state that your multi-currency IBAN will allow you to receive euro payments.
At Payset, we provide euro support and offer European IBANs to eligible US businesses. Contact us to see what options are available to you.
How do I receive EUR payments without high fees?
Payset provides multiple features that may lower the cost of receiving euros. First, eligible users can hold EUR without automatic conversions from EUR to USD, which may help you avoid or reduce conversion fees. Secondly, we may route payments over SEPA and SEPA Instant for better transfer fees. Finally, we aim to provide competitive service fees all around.
Can I invoice European clients in EUR directly?
Payset enables you to receive euro payments from invoiced clients via supported payment networks such as SEPA, SEPA Instant, and SWIFT. We see these options as some of the best ways to send money internationally for businesses.
