Changing your registered bank account on Stripe is easy. However, before you proceed, let's have a look at some of the things to consider to make sure that you'll receive your money on time and with the least fee.
When you’re selling your products across the globe, presenting the prices in a customer’s native currency can improve sales and help them avoid conversion costs. However, this comes with a compromise on your side as you’d have to carry the conversion cost when you finally collect the payments to your local bank account.
Stripe generates separate balances for each currency that your customers paid in.¹ When those balances are paid out to your registered bank account (or debit card), Stripe automatically sends them to the bank account that has the same currency. However, if there is no registered account in the same currency, Stripe will automatically convert your money to match the currency of your registered account.¹ This will incur a 1% conversion fee.²
The solution to this is to register several accounts in different currencies to reduce the fee. However, banks are not usually the best option as they often only support one local currency and charge an even more expensive conversion fee on top of a receiving fee.
The great news is that there are services like Wise multi-currency account that you can link to Stripe in order to receive payments in different currencies for free. If you wish to convert them in your local currency, there’s a small and transparent fee. Using Wise multi-currency account, you can collect and manage most of the currencies you need in one account making it easier to organize.
The type of bank account information required depends on where your bank account is located. The bank accounts must be located in the country where their settlement currency is based (e.g., USD bank accounts must be based in the US), though there are some exceptions where Stripe can payout:³
- To a USD denominated account that was created and registered in Canada
- To GBP bank accounts created and registered in Ireland, provided they support payouts with Bacs (check your bank to see if they support this payment method).
- To EUR bank accounts located in any European country where Stripe is currently live, in public beta, or in private beta.
The option to change or add bank accounts on Stripe can be found on the main dashboard/home page. Here’s the step by step guide:
- On the left hand side menu, click on ‘Settings’
- Then click on ‘Bank accounts and scheduling’ given under ‘payments and payouts' list.
3.Click on the ‘edit’ button next to the currently linked bank.
- Provide new bank account information and click 'edit' to confirm. For payouts to a local bank account held in the U.S., Stripe usually asks for your ACH routing numberwhich is the 9 digit number below your cheque.
- Click on the link sent to your registered email address to confirm the change.
- You might be asked to log in again and go through the 2-factor authentication but you're all set after that!
You can take advantage of the real exchange rate and avoid international transfer fees using Wise multi-currency account. You can link your EUR, GBP, USD, AUD, and NZD balances with Stripe to collect payments in these currencies for free.
In order to connect an account in a different currency, you’d need to add a new account for the new currency.
Under the drop-down menu on the top-left corner of the main dashboard, select ‘New account’.
You’ll be asked for a name for the new account
Once it's created, click on ‘activate account’ from the left menu under the 'home' button.
Fill in your business details (please note that you need to select a country where you wish to collect payments from) For example, if you wish to collect Euro from your customer, you should select any European countries that have Euro as their local currency otherwise you won’t be able to add the relevant account details.
Once completed, click on 'settings' then ‘Bank accounts and scheduling’ given under ‘payments and payouts' list.
Click on ‘add bank account’ then enter the details on the promoted field and save.
Please note that there are different payment methods for each currency so in order to collect funds in them, you’d need to activate the relevant payment method. You activate them from the ‘payment method’ field which you can find under settings.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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