ACH Transfers: Your Guide to Receiving International Payments

Types of Transfers

• ACH (Automated Clearing House):
  Imagine you need to move money between your U.S. bank accounts or pay a bill. ACH is your best friend! This electronic transfer system is slow but reliable—it takes 1 to 3 business days and is perfect for domestic transfers. The best part? It’s cheaper than other methods like Wire transfers.
• Wire Transfer:
  If you need to send a large sum of money quickly, then Wire transfers are what you need. They’re fast (often processed the same day or within one business day) and work for both domestic and international transfers. Just be prepared to pay a bit more for that speed.
• SEPA (Single Euro Payments Area): For those moving money within Europe, SEPA is the solution. It works like ACH, but for European countries that use the euro. SEPA transfers are usually fast (1 business day) and are an economical option for euro transactions within the SEPA zone.

Types of Deposits:

• First Party Deposit:
  No surprises here. This is the type of deposit where the account holder (that’s you) deposits money into their own account. Like when you transfer money from your bank account to your Airtm account, for example.
• 3rd Party Business Deposit:
  Now, if a company deposits money into your account, we’re talking about a third-party business deposit. Think of it as a client payment to your personal account; that’s a clear example.
• Relative’s Deposit:
  Your brother sends you money for your vacation (thanks, bro!). That’s a relative’s deposit. In short, it’s when a family member deposits money into your account.
• 3rd Party Individual Deposit: And what happens if the person depositing isn’t a company or a relative? Let’s say it’s a friend transferring money to you. That’s a third-party individual deposit. Simple, right?

Your Key to Receiving International Payments

One of the most powerful tools in a freelancer’s arsenal is the US Virtual Account. Why? Because it allows you to operate as if you had a U.S. bank account, no matter where you are. This is especially useful for receiving payments from international clients or platforms that only operate in dollars.

What is the US Virtual Account?

The U.S. Virtual Account is a digital bank account that allows you to receive payments in U.S. dollars as if you were in the U.S., but from anywhere in the world. This account is ideal for those who work with U.S. clients or use platforms like PayPal, Airbnb, Deel, among others, that typically pay in dollars.

How does it work?

• Routing Number and ABA:
  To start receiving payments, your U.S. Virtual Account will provide you with a Routing Number and an ABA number, which are essential for identifying your account in the U.S. banking system. These numbers work like a postal address, ensuring that funds reach your account accurately.
• SWIFT Code: If you’re receiving international payments, the SWIFT Code comes into play. This code is crucial for international transfers, ensuring that your money moves smoothly from one bank to another country into your U.S. Virtual Account.

Summary of the Differences:

• ACH vs. Wire vs. SEPA: It all comes down to where you’re sending the money, the speed of the transfer, and how much it’s going to cost you. ACH is for the U.S., SEPA is for Europe, and Wire is your fast but costly international option.
• First Party vs. Third Party:
  The key here is who’s making the deposit. If it’s you, it’s a First Party deposit. If it’s someone else (whether it’s a business, a relative, or a friend), it’s a Third Party deposit.
• Third Party Business vs. Individual vs. Relative:
  Depending on whether the deposit is made by a company, a family member, or someone else, the type of deposit will vary.

Changing the game for freelancers

The U.S. Virtual Account isn’t just a tool; it’s a game-changer for any freelancer or professional receiving payments from abroad. It allows you to stay one step ahead in managing your international income, making getting paid in dollars as simple as if you were in the U.S., no matter where you are.

If you do not have an account, you can create one in this link and recieve some USDCs for your first transactions.