Chime foreign transaction fees: Complete guide
Everything you need to know about Chime's debit and credit card foreign transaction fees.
Being able to accept card payments is a significant step for businesses. In order to do that you need a merchant account.
Based on a 2020 survey of consumer payment choice, debit cards were the most popular payment method of US consumers, accounting for 33% of total monthly payments, with credit cards coming in second at 27%. On top of this, the number of consumers making at least one online payment per month has increased from 59% to 66% in 2020.¹
If you haven’t already got a merchant account, then stay tuned to learn about all that’s involved - from fees and requirements, to the application process - as well as learn how it differs from a business account.
This article will cover: |
---|
The definition of a merchant account is: a type of bank account for businesses, looking to accept cashless payments.² Typically, businesses open a merchant account to receive credit and debit card payments.
Once a card payment is processed, your funds will be deposited in your merchant account and will be held there until you actively transfer them to your business account.
Without a merchant account, your business cannot process card payments. This makes merchant accounts particularly important for online as well as e-commerce businesses.
To open a merchant account as a business owner, you need to settle a contract with a merchant acquirer. Merchant account providers can vary in fees and services, depending on what you’re looking for.
A merchant account shouldn’t be mistaken for a business account - they’re separate accounts with different functions.
A business account is an account used to run your company and its day-to-day business transactions. For example, with a business account you can store your funds, pay your employees, make and accept payments, as well as manage subscriptions.
| Additionally, some business account providers, such as Wise, allow you to hold and work with multiple currencies. | |
| :------------------------------------------------------------------------------------------------------------------------------------------------: | - |
| As an international business, this can be especially convenient when receiving payments from abroad, or if you need to pay overseas contractors. | |
Manage international payments
with the Wise multi-currency account
But a business account can’t receive card payments. This is where a merchant account comes in.
The purpose of a merchant account is to receive money via card payments - that’s its main and only function. Unlike a business or personal account, you can’t deposit or withdraw money from it. To use your merchant account funds, you’ll need to first transfer them to your business account.
As already mentioned, a merchant account allows your business to accept credit and debit card payments. These payments could be in-store, online or even over the phone.
A business merchant account works like this:
It’s important to remember that a business merchant account is strictly for receiving funds.
If you want to use your money, you first have to transfer it from your merchant account to your business account. Depending on your provider, this can take between 2 to 10 business days on average, though some providers offer instant transfers.³ ⁴
If you’re looking to receive cashless payments, then setting up a merchant account is the next logical step in your business plan.
You can apply for either a regular merchant account offered by a merchant acquirer, or a third-party payment provider.
If you’re looking to save money and opt for a more convenient option, then opening a merchant account with a third-party payment provider - such as Stripe - might be a good alternative for you.
| Link your Stripe account with your Wise business account easily, to send and receive payments with the mid-market rate around the globe. | |
| :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------: | - |
Learn more about Wise for Business
To apply for a merchant account, you need to first fill out an online application form.
Normally, you’ll have to provide basic contact information, the name of your business and the industry it operates in, as well as the state your business is based in. This shouldn’t take more than a few minutes to complete.
But before applying for a merchant account, the first step is deciding exactly what you need from your merchant acquirer.
For example:
Keep in mind that your fees can be influenced by a number of factors. For example, your type of business and its industry, your credit rating, as well as your sales volume, can all influence the fees you’ll have to pay.
This will be covered below in more detail.
Before opening your merchant account, your provider will require some further information about your business and will request supporting documents. Normally, these are:
Your provider will let you know exactly what they need from you.
When selecting a provider, doing a fee comparison is always wise. But keep in mind that fees depend on several factors rather than just the provider.
It may vary depending on your payment network, the types of card you’re looking to cover, as well as your Merchant Category Code (MCC).
There are quite a few fees your provider can/may charge. Here are just a few:
Just like with merchant account requirements, your provider will let you know exactly what fees they charge.
Having a merchant account allows your customers to pay by card. As we move forever closer to a cashless world of lightning-speed transactions, it seems only logical that businesses wanting to grow need to offer the option of card payment.
On top of this, a merchant account expands your business’s infrastructure, as your customers are no longer restricted by having the option of only bank transfer or cash payment.
Just remember that if you do have a merchant account, it’s worth considering what type of business account you’re withdrawing your money to. This is where Wise comes in.
Wise Business can help you save big time on international payments.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.
Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.
Some key features of Wise Business include:
Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers
Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local
Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account
Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met
Free invoicing tool: Generate and send professional invoices
No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here
All sources checked on 11 October 2021
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Everything you need to know about Chime's debit and credit card foreign transaction fees.
Master invoice best practices to streamline your billing process. Learn tips for clear, professional, and efficient invoicing to get paid faster.
Discover if Wise can be used as a payment gateway
Explore how to accept recurring payments seamlessly. Learn about tools, setup processes, and best practices to grow your subscription-based business.
Discover the secrets to sourcing from China successfully. Learn about finding suppliers, negotiating deals, and ensuring product quality.
This payment gateway fee guide looks at the payment gateway pricing models you might come across, so you’ll know what to look for when you choose one.