UK Bank Account that can accept online payments in USD?

Jiva

I get paid by my clients in US dollars, through PayPal.

After PayPal have taken their fees, I have to withdraw the money to my UK bank account.

PayPal convert the money into UK pounds but their exchange rate is always lower than the real exchange rate.

Over the year this really adds up.

Do you know if there are any UK bank accounts that will let me accept payments in USD or some other way I can avoid using PayPals poor exchange rates?

I'm currently with Natwest who don't seem to offer this service.

Thanks!

agrinnall

I believe that most of the banks that offer a USD account either charge or require a high balance in the account, and of course if you want to use the money in the UK you'll still need to convert it at some point (although probably at a better rate than you currently get).

If you have a trawl through the board you'll find many threads asking similar questions.

lexia

Try Barclays, but you need to open a GBP bank account with them first. Their USD bank acount charges a £7 monthly fee though, and other fees for various transactions.

You can convert the USD to GBP online, with Barclays (convert and transfer from USD acct to GBP acct). But, I'm not sure their exchange rate is better than PayPal's. If you can, try a currency exchange broker firm for the exchange, such as UKforex.

http://www.barclays.co.uk/Otheraccounts/Currencyaccounts/ForeignCurrencyAccount/P1242557963858

eDicky

Jiva wrote: »

I'm currently with Natwest who don't seem to offer this service.

If you mean a service that converts incoming USD payments to GBP at the interbank rate without imposing a spread in their favour, you will find no bank that provides it.

You could open a US dollar account (a forum search will reveal possibilities) but they mostly require a minimum balance to avoid fees. If your revenue volume would make that feasible, you could then open a Revolut account with their smartphone app, top up the USD balance from your dollar account, convert to pounds at the interbank rate into the GBP balance, then withdraw from that into your NatWest account.

System

If they are modest but regular amounts then a currency exchange specialist might be a good idea.

Their 'cut' will be less that the bank plus they will often have a US based accounts for your clients to (domestically) deposit payments.

lovinituk

You can't transfer dollars from a UK PayPal account. They will only let you withdraw GBP. I know this for a fact as I discussed it with our PP account manager last year.

The only way you could draw $ from a PayPal account would be if you had a US PP account which you can't get without a physical presence in the US.

Sorry but you're stuck with Paypals awful exchange rates.

Jiva

Thanks. It's only a few thousand a month so looks like I will have to suck it up.

Any tips on claiming the PayPal fees and poor exchange rate as a business expense to offset against tax?

agrinnall

Just charge your clients a bit more to offset the fees and exchange rate, why should the poor old UK taxpayer pay for it?