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Top Payment Method for IT Consultant Agencies Accepting GBP Payments
2 minutes read
24 July 2024
As an IT consulting agency, you know receiving GBP currency payments is essential for your business. But with so many different payment methods available, finding the right one can take a lot of work.
You want a method that is secure, reliable, and affordable. You also want a method that is easy to use for your clients. And you want a method that will help you grow your business.
That’s why we’ve created this ultimate guide to choosing the right GBP payment method for your IT consultant agency. So read on.
1. Wire Transfer via SWIFT for Receiving International Payments
Wire transfer through SWIFT has been the go-to method for transferring international payments and converting GBP to INR for decades. It’s a trusted but expensive method. Transaction fees are 1-2%. And additional fixed fees can be thousands of rupees per transaction. Hidden banking fees may increase the cost, and the process takes several days.
Despite these drawbacks, many Indian agencies choose wire transfers for their security and reliability. To know more about how SWIFT works, read our blog.
2. Credit Cards for Receiving Cross-Border Payments
Credit cards are a popular choice for marketing agencies to receive their GBP currency payments. They are quick and convenient for both parties involved. However, there are some downsides to these transactions. Their fees can be high, up to 2-4%, impacting profit margins. Processing time may also take several days, affecting cash flow.
Credit card companies have strict security measures to prevent fraud. Credit card transactions, therefore, experience high failure rates (~20%), resulting in a loss of customer trust. Despite these downsides, credit cards provide a secure method to receive funds from your international clients.
3. PayPal: A Convenient Option for Receiving International Payments
IT consultant agencies also rely on platforms like PayPal to receive their international payments and convert GBP to INR. PayPal is convenient because you don’t need to visit a bank or deal with paperwork. You can easily open an account online by submitting the required documents.
Remember, PayPal’s support for different currencies may vary. Also, transaction fees, usually 3-5%, can affect your earnings. So, compare the fees and supported currencies before choosing PayPal.
To learn more about PayPal, check out our blog.
4. Virtual Multi-Currency Accounts for Receiving International Payments
Several IT consultant agencies now opt for global collection accounts to receive international payments, including GBP to INR. These accounts help manage funds in different currencies, which is helpful for global businesses.
Compared to traditional banks, virtual accounts offer faster and cost-effective alternatives.
These accounts can also act as Online Payment Gateway Service Providers (OPGSP), collecting international payments and converting them to INR. This ensures better exchange rates and saves exporting businesses money.
With Winvesta, businesses and individuals can open multi-currency accounts with a local US, UK, Canadian and European bank account number. Receive payments from 180 countries in 30+ currencies and withdraw your funds to INR in as less as 1 day at charges starting at $3 + 0.99%
Comparison at a Glance
| Winvesta MCA | Credit Card | PayPal | SWIFT | |
| Payer Fee | 0% | 3% | 0% | $30-$50 |
| Receipt Fee | $3 + 0.99% | 1.5%-3% | 4.4% + $30 | $20-$40 |
| FX spread | 0% | 3%-5% | 3% | 3%-5% |
| Withdrawal to India | $0 | $0 | $0 | $0 |
| Total | $3 + 0.99% | 7.5%-11% | 7.4% + $30 | upto 5% + $90 |
| Speed | In as less as 1 day | 2 to 7 business days | 2 to 5 business days | 2 to 7 business days |
| Rejection Rate | Low | High | Low | Low |
Conclusion:
The four payment methods discussed in this blog post are just a few of the many options available to IT consultant agencies. By carefully considering your needs and requirements, you can choose the best payment method for your business and ensure that you receive your GBP payments quickly and efficiently. A quick recap:
- Wire transfer via SWIFT is reliable but expensive and time-consuming.
- Credit cards are convenient but have high fees.
- PayPal is popular but charges fees and has currency limitations.
- Virtual global collection accounts, such as Winvesta’s, offer cost-effective solutions with faster transactions. By considering fees, speed, and convenience, you can optimize international payments and focus on delivering excellent services.
Open your Winvesta account today!
Disclaimer: The article references PayPal, which owns its own trademark.
