Creator Financial Toolkit: Wrapping Up and Conclusion
I know what you’re thinking, Wrapping Up and Conclusion has Part One?
I figured that if I told you how the accounts working together could save you money. You would understand why you should read these posts.
To me, it’s not a matter of which account you should have. If available in your country, you should have all four accounts. Each account has its own unique set of features that make it better than the other accounts in certain scenarios.
As mentioned before, depending on the service used, either Payoneer or Paypal is required in order to access your earnings. Where neither PayPal nor Payoneer is required, the other accounts offer lower fees to access your funds.
Accounts Working Together
Paypal and Revolut
Within a Paypal account, Paypal offers the option to designate a card for specific currency transactions. Otherwise, Paypal will use its own currency conversion rate, which is typically more expensive than, say, Revolut’s conversion rate.
Paypal allows you to do this for two different currencies; however, you need to use two different cards for each currency, i.e., one card per currency.
Let’s say you wanted to use one card for USD ($) transactions and the other for EUR (€) transactions. What you could do is open USD and EUR accounts within a Revolut account, then create two virtual debit cards. Label one USD and one EURO.
Now, in your Paypal account, add the virtual cards you created in your Revolut account to your Paypal account. Label the corresponding cards in USD and EURO like you did with your Revolut account. Then select the USD card to be used for USD ($) transactions and the Euro card for EUR (€) transactions.
The scenario is:
I’m in the UK, and I visit a website that processes transactions in USD ($) through PayPal, or I just prefer to use PayPal.
PayPal will see that the transaction is in USD ($) and then process the transaction using the card I selected for USD ($) transactions. In turn, Revolut will see the incoming transaction from PayPal and use the funds in the USD ($) account to cover the transaction. If the USD ($) account cannot completely cover the transaction, then Revolut will convert the default currency for the transaction. Even with Revolut using the default currency GBP (£) to process the transaction. The actual fees charged would be less than if PayPal were to process the transaction.
Payoneer With Revolut, or Wise
Depending on the service, you are required to have a Payoneer account to receive your earnings. However, unless you are using Payoneer for your everyday business transactions, which can be expensive, You will want to transfer your earnings into your main business account.
Payoneer has set fees that can be applied when withdrawing funds from Payoneer into your main business account. These can include exchange charges, cross-border charges, and fixed fees.
The way funds are paid into your Payoneer account determines how you can withdraw funds.
While Payoneer has its own multi-currency accounts. You can add your Revolut and Wise accounts to Payoneer and have your Business or individual pay directly into those accounts via Payoneer.
***For me, in the U.K., pounds sterling, or GBP (£), is the country’s currency. However, because the U.K. is in the European region, I can also be paid in Euros.
My best option would be to use a Euro account provided by Wise. This is because the Wise account is legally a European account.
If I were to use a Euro account provided by Payoneer, I would have to pay added fees not required when paying into the Wise account. ***
With the accounts working together, as mentioned, you will have microsavings. However, as your business scales, these savings could become significant over time. A 2% charge on a £100 transaction, which is £2, sounds reasonable at this level.
However, a £100,000 transaction with charges of £2000 is a little different. This does not take into consideration the total charges when looked at over multiple transactions.
To open most of the accounts mentioned, you will need to be registered with a credit reference agency. This has more to do with an identity check than a credit check.
Hope for the best Prepare for the worst.
Multiple Business Accounts
In your personal or business life, you should have multiple bank accounts. Ask yourself this, What would it mean if you lost access to your bank? If it is a major issue loosing access to your banks you need more than one account.