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How does the OFX global currency account work?
The OFX global currency account is designed to make managing your global e-commerce business easier and more cost-effective. It allows you to open local currency accounts in six international markets – Australia, the USA, Europe, the UK, Hong Kong and Canada – and manage all your accounts, balances and transfers in the one place.
While you can’t open a global currency account for New Zealand dollars, you can open foreign accounts for the following currencies:
USD US dollar
CAD Canadian dollar
GBP British pound
EUR Euro
HKD Hong Kong dollar
AUD Australian dollar
You can then use your global currency account to accept payments from a wide range of online marketplaces, including:
This means you’ll enjoy faster access to your sales revenue and be able to take advantage of OFX’s competitive exchange rates when you want to repatriate your funds to New Zealand dollars. You can also hold funds in a foreign currency while you wait for a better exchange rate to become available, or use those funds to pay overseas suppliers in their local currency.
PayPal is widely seen as a convenient option for marketplace sellers looking to receive and send international payments. However, using PayPal does have a few disadvantages:
Payment fees. PayPal charges a fee when you receive payment from a sale. This fee is 3.4% + a fixed fee for payments from within New Zealand and 3.4% + NZD$6.99 + a fixed fee for international payments.
Currency conversion fees. When you receive payment in a foreign currency, you’ll need to convert that money into New Zealand dollars to transfer it to your bank account. When you do this, PayPal adds a margin of 2.5%.
Low exchange rates. If you send an international payment via PayPal, you’ll typically be able to find a superior exchange rate from a specialist transfer company.
In comparison, there are no set-up or ongoing fees attached to the OFX global currency account. And while OFX does charge a percentage fee when you make a transfer, it’s worth comparing this fee with the total cost of managing your international payments with PayPal to work out which provider offers better value for money.
What are the OFX global currency account’s fees?
OFX doesn’t charge any:
Account set-up fees
Ongoing account fees
However, when you make a transfer from your account, OFX does add a margin on top of the mid-market exchange rate to cover its costs. The size of this percentage varies depending on the currency being sent.
To find out how much international transfers with OFX will cost you, enter the details of your transaction in the table below.
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
How do I set up an OFX global currency account for my e-commerce store?
You can sign up for an OFX global currency account by completing a few simple steps.
Head to the OFX homepage and click the “Register” link in the top right-hand corner of the page. Select a business account before continuing to the next step.
Select the country where your business is registered or incorporated in and specify the type of entity it is.
Enter your business’s name and registration number, and the amount you expect to transfer each year.
Next, you’ll need to provide your name, date of birth, address, job title and primary contact number. You’ll also be asked to provide your driver’s licence details so that your identity can be confirmed.
Create a username and password before setting up an account security question. You’ll also need to read and agree to the terms and conditions before submitting your account application.
After receiving your form, an OFX representative will call you to ask about the currencies you’d like to accept and your payment needs. You may also need to provide some additional documentation to support your application. Once you’ve completed this step, accounts are typically approved within four business days.
Receive payments in multiple currencies. The global currency account lets you receive payment in six currencies, helping you avoid poor exchange rates and high transaction fees.
No set-up or ongoing fees. There are no fees attached to opening an account and no ongoing account-keeping fees to worry about.
24/7 customer support. You can contact OFX’s customer support team 24 hours a day, 7 days a week.
OFX Online Seller Resource Hub. OFX also operates an online hub to provide tips and advice to help you grow your e-commerce business.
Cons
Doesn’t support NZD. Some multi-currency accounts from other services support a greater range of foreign currencies, including New Zealand dollars.
Slow approval process. Once you’ve submitted an application to open an OFX global currency account, you’ll need to wait four business days for approval. It can then take up to two additional business days for your account details to be delivered to you.
Exchange rate margins aren’t quoted upfront. While OFX charges a percentage when you make a transfer from your account, this margin isn’t quoted upfront before you sign up for an account.
How does the OFX global currency account compare to other online seller services?
Check out the table below to see how the features of the OFX global currency account stack up against those of online seller accounts from other services.
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
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