Accepting payment via bank transfer to IBAN

ericpode

I'm selling a software program where the usual payment method is paypal or credit card (paypal act as the payment gateway for purchases via credit card).

I've had an email from someone in Slovakia who says they do not have a credit card. They don't say whether they have a Paypal account, but presumably not.

They say that they can transfer the purchase price in Euros to my bank account if I supply an IBAN.

I've never had a payment made via IBAN, and I'm a bit nervous of giving him my bank account number (as an IBAN). Is it safe to hand out my bank account number to a stranger in this way?

I guess it might be safer to give the account number of a dormant empty savings account which I no longer use and which could be closed without any inconvenience to me if there were any problems. Also a savings account does not have an overdraft allowance so a malicious hacker can't withdraw lots of money from it!

If this is a safe way to accept payment, is there a "safe" converter which will convert my savings account number into an IBAN?

Also, are there any bank charges for accepting such a transfer? Do I need to tell the buyer to add on an amount to cover a fee that might be deducted at his end?

Snooze

Bank transfers and IBANs are safe as houses. Nothing to worry about whatsoever. I use them all the time for both UK and international and have never once had any problems. Best thing about them is that you don't have to worry about chargebacks or anything like that. Once the money is in your account then there's nothing they can do at their end if they change their mind or whatever.

I always offer Paypal and cash on all my listings but make a point of saying that if the buyer wants me to ship the item abroad then payment must be by IBAN transfer or GBP cash only (as Paypal won't cover for overseas shipping).

Rob

digerati

ericpode wrote: »

If this is a safe way to accept payment, is there a "safe" converter which will convert my savings account number into an IBAN?

Also, are there any bank charges for accepting such a transfer? Do I need to tell the buyer to add on an amount to cover a fee that might be deducted at his end?

Your BIC and IBAN details are printed on all your bank statements (as mandated by EU regulations).

No bank charges are payable provided the payment is in Euros with Shared charges specified.

It's actual quite safe and certainly easy.

ericpode

I've sent the buyer my IBAN, and now they say that their bank requires my full name, "town", and SWIFT/BIC code.

Is this info always required to do an IBAN transfer?

Sorry if I still seem a bit paranoid!

frivolous_fay

SWIFT is for the US so doesn't apply, but yes, BIC is required.

The buyer already has access to your full name and address, so I wouldn't worry too much about supplying your name and 'town', it's probably just for admin purposes.

digerati

One important point to remember with bank transfers is to provide the (legal) name your bank account is held in rather than your usual name i.e. "Eric F Smith" rather than "Freddy Smith" as everyone calls you... ;-) It isn't so important for domestic bank transfers, but with international ones they may be refused as a "non-matching account holder".

BIC should be on the line above your IBAN on your bank statement. Both are needed for cheap/free cross-border bank transfers within the EU/EEA. Note you need to find the £ GBP total in Euros (Euros €) so your Slovakian buyer can remit the correct amount. I usually add around €0.25 to cover exchange rate fluctuations.

GregtheHammer

Lot safer receiving payment from an European buyer by bank transfer rather than paypal!

ericpode

Thanks all. The payment has arrived. I used xe.com currency converter to convert £19.99 to Euros which at the time was 24.90

The amount that arrived in my A+L account was just £19.21, so I checked the present rate on xe.com and 24.90 euros converts to £19.80. So the amount I received seems to be 3% lower than the present xe.com figure.

I thought that there was supposed to be no fees for transfers in the EU, and the entry on my bank statement did not state any fees deducted. I can only assume that the xe.com conversion is using a slightly different conversion rate to that used in IBAN transfers.

Is there a different converter I should be using which gives a more accurate figure for IBAN transfers?