Multi-Currency Bank Accounts For E-Commerce Sellers

Multi Currency Bank Accounts

If you’re selling online internationally using different currencies, you may benefit from using a multi-currency bank account to mitigate foreign currency exchange fees.

Pitfalls of Currency Conversion For Amazon Sellers

Amazon’s currency conversation can cost up to 4.5% of the lump sum converted. Amazon customers have 2 options: Pay in their own currency with their bank’s conversion rates, or use Amazon’s currency converter which will show the price in the store’s currency. 

So, if you don’t use a multi currency bank account, you will have to rely on Amazon’s conversion rates to receive the payments. 

By using a multi currency bank account you can receive different currencies directly and use the bank’s currency conversions to convert to your preferred currency. Their direct conversions will be lower than that of Amazon.

How Do Multi- Currency Bank Accounts Work?

Multi-currency banks work similarly to other virtual banks – They’re accessible online / through mobile apps. 

You can make outbound payments / receive payments in any currency to your own account. The funds are held in a safeguarded bank account and you can transfer to your own bank account at any time, via debit card, wire transfers, electronic payments or cheque.

There are a number of multi-currency banking solutions for e-commerce sellers. We’ve compared some of the main contenders below.

Setup feeFreeFreeFreeFree
Transfer feeBetween 0.35% – 3%

0.5% average

Free for Monito usersTo bank account in different currency – Up to 2%

To bank account in same currency –

0.5% up to £500k
0.25% £500k-£5m
0.15% £5m+
Exchange ratesStandard mid-market rateLow rates that decrease the more you use – this is locked in and will not move with the marketUp to 3.5%Live market rate + their fee above
Accounting software compatibilityXero, QuickbooksXeroXero, QuickbooksXero
Minimum transfer£1£100£50£1000
Key features– Physical cards
– Invoice tools
– Supports 71 countries
– Low minimum transfer
– £0 transfer fee
– 24/7 customer service
– Risk management
– Capital loans
– Integrated payments
– Escrow payments
– Risk management
– Live rates
– Daily currency news
– Account managers
SuitedSmall to midsize businesses dealing with the major currenciesBusinesses dealing with the major currencies. Lower fees for large transfersSmall to midsize businesses. Great if payees also use PayoneerLarger businesses or your use a lot of different currencies

Please click here to see our comparison on online business bank accounts

Need more help?

If you need further help with your accounts, our e-commerce accountancy experts can be contacted by clicking here