How to Receive Money From Abroad with a Multi-Currency Account

Getting paid from another country sounds simple until the money actually arrives. The transfer may have a fee, the exchange rate may be worse than expected, and part of the amount can disappear somewhere between the sending and receiving banks.

This is a common situation for freelancers and remote workers. An employee may be paid in USD while living in Europe. A freelancer may have clients in Germany, the UK and the US at the same time. An expat can receive income in one currency and pay most of their bills in another.

A multi-currency account is one way to handle this without converting every payment immediately. Supported currencies can be kept separately, so the money can be exchanged when it is actually needed.

The easiest part of an international payment is usually sending it. Receiving it can be less predictable.

A normal bank account often has one main currency. If a payment arrives in another currency, the bank may convert it automatically. The customer does not choose the moment of conversion and may not get the exchange rate they expected.

There can also be charges along the way. An international transfer may involve the sender's bank, one or more correspondent banks and the recipient's bank. Depending on the payment route, the amount credited to the account can be smaller than the amount sent.

Currency support is another issue. A bank may accept EUR and USD but not a less common currency. In that case, the payment may be rejected, returned or converted before the recipient sees it.

The difference becomes noticeable when payments arrive every month. A small FX spread on one transaction does not look serious. Applied to a full year's income, it is a different story.

The same applies to companies. An iGaming business, for example, may receive or send EUR, USD and GBP when working with affiliates, suppliers and contractors. Converting every payment into one currency can add unnecessary costs.

The best ways to receive money from abroad depend on the currency, country and type of income. A standard bank account is still a reasonable choice for occasional payments. Someone receiving foreign income every month may need more flexibility.

A traditional bank account can receive an international  money transfer if the bank supports the currency and payment route. EUR payments within the SEPA area are handled differently from many transfers sent through SWIFT.

A person who receives €500 from abroad once a year may not care much about this. A freelancer receiving €4,000 every month probably will.

There is also no single delivery time for every international transfer. The route, banks involved, cut-off times, weekends and compliance checks can all affect when the money becomes available.

A multi-currency account works differently because several currencies can be held at once. A supported USD payment can stay in USD, while EUR income can remain in EUR.

That is useful when the recipient has expenses in more than one country. Someone living in Spain but working with US clients may keep dollar income until they actually need euros for rent or other expenses.

Some providers also issue local receiving details for particular currencies. Depending on the service, these may include an IBAN, local routing information or other banking details.

People who move between countries rarely have all their income and expenses in one currency. That is where a multi-currency account becomes useful.

A digital nomad might receive EUR from a client in France, USD from a US company and spend part of the year in the UAE. An expat may receive a salary in USD while paying rent in EUR. Converting everything into one currency creates another conversion when the money is needed somewhere else.

The exchange rate deserves as much attention as the transfer fee. A bank can offer a cheap international transfer and still make the transaction expensive through its FX spread.

Imagine a freelancer receiving EUR 5,000 every month. A difference of only a small percentage in the conversion rate may not be obvious on one payment. After twelve months, however, the total can become substantial.

A multi-currency balance gives the recipient another choice: do not convert yet. The money can stay in EUR until there is a reason to change it into another currency.

This does not mean that multi-currency accounts have no fees. Conversion charges, withdrawal fees, receiving fees and transaction limits vary between providers. The total cost should be checked before relying on an account for regular income.

Some multi-currency accounts provide local payment details for selected currencies. A client in the euro area may be able to send EUR to a dedicated IBAN, while a US client may use the USD receiving details provided by the service.

This can make life easier for the person making the payment as well. They do not necessarily need to work out an unfamiliar international payment route every time.

There are limits, though. Not every provider supports EUR, AED, CNY and other currencies in the same way. Some currencies can be held but not received locally; others may be available only for conversion.

The practical process of how to receive money from abroad is usually short.

• Open an account and complete the required verification.
• Check that the currency you expect is supported.
• Find the correct receiving details for that currency.
• Send those details to your employer, client or payment platform.
• Wait for the payment and check the amount received.
• Keep the currency as it is or exchange part of it when needed.

One more thing is worth doing from the start: keep documents that explain where the money comes from.

A freelancer should keep invoices and client agreements. An employee may need an employment contract or payslips. A company receiving affiliate revenue should have contracts and invoices available.

Banks and regulated payment providers can ask for this information when a transaction is large, unusual or does not fit the account's normal activity. EU AML rules require regulated institutions to apply customer due diligence and, where necessary, consider the source of funds when monitoring transactions.

The easiest way to receive money from abroad is not the same for everyone. Someone with one foreign payment every few months may be perfectly happy with a regular bank account. A person receiving money from several countries every month has different requirements.

A multi-currency account can be useful when income and expenses are spread across several countries. With a mobile app, customers can check their balances, receive notifications about incoming payments and manage different currencies without waiting until they are back at a desktop computer.

For example, an expat receiving a USD salary can check the incoming payment from a smartphone and decide whether to keep the funds in USD or convert part of the balance into EUR for upcoming expenses. A digital nomad can use the same approach when moving between countries and paying for accommodation, transport or everyday purchases in different currencies.

Common mobile actions include:

• checking balances in different currencies;
• receiving push notifications when a payment arrives;
• converting one supported currency into another;
• sending an international transfer;
• reviewing recent transactions and payment details.

The exact features depend on the provider. Some multi-currency accounts may also offer cards, local payment options or scheduled transfers, while others focus mainly on holding and transferring funds.

Mobile access is particularly useful for people who receive money in one currency and spend it in another. Being able to check the balance and manage the conversion from a smartphone can make everyday international money management more convenient.

An invoice, employment contract or other proof of income should still be kept available. A bank or regulated payment provider may request supporting documents when reviewing the source of a payment.

ABF Pay provides a multi-currency personal account for eligible customers who need to receive and manage international funds. Details about the service are available on the personal account page, while ABF Pay provides information about its payment services.