How to Receive Money From Overseas in Australia: A Complete Guide

Selling to customers overseas can open up new markets for your Australian business. But once the sale is made, you still need a simple way to get paid.

Receiving money from overseas in Australia can involve different payment methods, currencies, fees, and processing times. If you’re an online seller collecting payments from international customers, a wholesaler working with overseas buyers, or a business receiving payouts from global marketplaces, choosing the right way to receive your money can make a difference to your cash flow.

In this guide, we’ll break down the main ways to receive overseas payments in Australia, what they cost, how long they can take, and what to consider when receiving and managing foreign currency.

Key Takeaways

• Receiving money from overseas in Australia can be done through bank transfers, online payment solutions, multi-currency accounts and specialist money transfer services.
• Provide the correct payment details such as your account name, account number, BSB and SWIFT/BIC code where required.
• Compare fees, exchange rates and processing times before choosing how to receive international payments.
• Use a multi-currency account to receive and hold foreign currencies without automatically converting them to AUD.
• Keep invoices and payment records to track overseas payments and support your tax and record-keeping obligations.
• Australian businesses receiving international payments can use WorldFirst to receive, hold and manage foreign currency in one place.

Essential Details Required to Receive Money from Overseas in Australia

To receive an international payment, the sender needs the right details to make sure the money reaches your account. The exact information depends on the payment method, currency, and provider, but you’ll usually need some combination of the following:

• Account holder name: Your legal name or registered business name.
• Account number: The account number for the account receiving the funds.
• BSB: Your six-digit Australian Bank State Branch (BSB) number when receiving funds into an Australian bank account.
• SWIFT/BIC code: An international bank identifier that may be required for overseas bank transfers.
• Receiving currency: The currency you want to receive, such as USD, GBP or EUR.
• Payment reference: A reference that helps you identify the payment, such as an invoice number.
• Bank or provider details: The bank or payment provider’s name and address may be required for some international transfers.

If you’re receiving money for goods or services, you may also need to provide an invoice with your payment details. Always check the exact requirements with your bank or payment provider before sending your details to an overseas customer.

Different Ways to Receive Overseas Payments in Australia

Receiving overseas payments doesn’t have to be complicated. You can choose from several options depending on how you get paid, the currencies you work with, and how often you receive international funds. Let’s look at the main ways to receive overseas payments in Australia.

Direct Bank-to-Bank Wire Transfer (SWIFT Network)

A direct bank transfer is one of the most traditional ways to receive money from overseas in Australia. The sender transfers funds from their bank to your Australian bank account, with the payment typically routed through the SWIFT network. Depending on the banks involved, intermediary banks may also be part of the payment route.

To receive an international bank transfer, you’ll generally need to give the sender:

• Account holder name: Your name or registered business name
• Bank name: The name of your Australian bank
• BSB: Your six-digit Australian BSB
• Account number: The account receiving the payment
• SWIFT/BIC code: Your bank’s international identifier
• Payment reference: Such as an invoice number, where applicable

The exact requirements can vary depending on your bank, the sending country and the currency being transferred, so check your bank’s current instructions before sharing your details.

How long does a SWIFT transfer take?

Processing times can vary depending on the banks involved, currency, intermediary banks, weekends and public holidays, and any compliance checks required. International transfers may take longer when the payment passes through multiple banks.

How much does it cost?

The cost of receiving a SWIFT transfer can come from several parts of the payment journey:

• Sender’s bank fee: The sender’s bank may charge a fee to initiate the international transfer.
• Receiving fee: Your Australian bank may charge an incoming international payment fee.
• Intermediary bank fees: Correspondent banks involved in routing the payment may deduct their own charges.
• FX costs: If the payment is converted into AUD, the exchange rate used by the bank can affect how much you receive.

The total cost depends on the banks involved, the payment route, and the exchange rate applied. Check the fees and exchange rate before choosing this option.

Online Payment Solutions for Businesses and Freelancers

Online payment solutions let businesses and freelancers accept payments from customers or clients through online checkout pages, payment links, and other digital payment methods. They can be useful when you regularly work with customers or clients in other countries.

How do online payment solutions work?

The process typically involves three steps

• Customer or client makes a payment: They pay through an online checkout, payment link, or supported payment method.
• Provider processes the transaction: The payment provider processes the payment and handles the transaction.
• Funds are settled: The provider settles the funds to your linked bank account or business account, depending on the service and settlement currency.

What should businesses and freelancers consider?

Before choosing a payment solution, check

• Payment processing fees: Providers may charge a percentage, fixed fee, or both.
• Cross-border fees: International transactions may have additional charges.
• FX and conversion fees: Converting foreign currency into AUD can affect the amount you receive.
• Supported currencies: Check which currencies your customers can use to pay.
• Settlement currencies: Check which currencies you can receive or hold.
• Settlement times: Find out when funds become available in your account.
• Payment methods: Check whether the provider supports cards, digital wallets, and other payment methods your customers use.
• Refunds and chargebacks: Review how refunds and chargebacks work and whether additional fees apply.

Multi-Currency Digital Business Accounts

A multi-currency account lets businesses receive, hold and manage funds in different currencies from one account. Depending on the provider and currency, you may also get local account details that make it easier for overseas customers or platforms to pay you.

This can be useful if your business regularly receives payments in currencies such as USD, GBP, or EUR. Instead of automatically converting every payment to AUD, you can hold the foreign currency and convert it when needed.

For Australian e-commerce businesses, this can also be useful when receiving funds from international marketplaces and payment platforms.

What should businesses consider?

• Currencies supported: Check which currencies you can receive, hold, convert, and send.
• Local receiving details: Check whether the provider gives you local account details for the currencies you need.
• FX fees: Compare the provider’s exchange rate and conversion fees.
• Transfer fees: Check whether sending money internationally costs extra.
• Settlement times: Check how quickly received funds become available.
• Account fees: Look for setup, monthly, or other account charges.

Comparison of Multi-Currency Business Accounts in Australia

Open a World Account today to receive, hold and manage your international payments in multiple currencies from one place.

Specialist Digital Money Transfer Services

Specialist money transfer services provide another way to receive international payments. They typically focus on cross-border transfers and may offer competitive exchange rates alongside different fee structures.

Popular options include Western Union, MoneyGram, and OFX, although the available receiving methods and features vary by provider.

What should businesses consider?

• Receiving options: Check whether you can receive funds directly into your bank account or through cash pickup.
• Exchange rates: Compare the exchange rate offered for your currency.
• Transfer fees: Check the upfront transfer fee and any additional charges.
• Supported currencies: Make sure the provider supports the currencies you receive.
• Transfer limits: Check whether there are limits on the amount you can receive.
• Transfer times: Check how quickly the funds can reach you.

Cash Pickup / Remittance Agents

Cash pickup services let recipients collect international payments in cash through participating agent locations. They can be useful when the recipient does not have a suitable bank account or needs access to funds quickly.

How does cash pickup work?

• Sender initiates the transfer: The sender chooses the cash pickup option and provides the recipient’s details.
• Recipient visits an agent: The recipient goes to an available agent location once the transfer is ready.
• Recipient verifies their identity: A valid government-issued ID and transfer or reference number may be required.
• Money is collected: The recipient collects the funds in cash.

What does it cost?

Costs can include a transfer fee and FX margin, with pricing varying by provider, payment method, and destination.

How long does it take?

Timing depends on the provider and transfer route. Some transfers may be available for collection shortly after processing.

Cash pickup is generally more relevant for personal remittances, emergency payments, or recipients without suitable bank accounts than for Australian businesses receiving regular commercial payments.

Do You Need an Invoice to Receive Money From Overseas?

Not always. Whether you need an invoice depends on the reason for the payment and the payment method being used. For Australian businesses, an invoice is generally used when you’re charging an overseas customer for goods or services. It shows the amount due, currency, payment terms, and details the customer needs to make the payment.

If you’re receiving money for another reason, such as a marketplace payout or personal transfer, an invoice may not be required. Always check the requirements of your bank or payment provider.

Proforma Invoice vs Commercial Invoice

A proforma invoice is usually issued before a sale is completed. It outlines the goods or services, estimated price, and proposed payment terms so the buyer knows what to expect.

A commercial invoice is issued for a completed sale. It records the transaction details, including the goods or services supplied, amount payable, and agreed payment terms.

How to Receive an Overseas Payment Using an Invoice

1. Create the invoice: Include your business and customer details, invoice number, amount, currency, payment terms and due date. You should also state how the customer can pay. If you’re receiving the payment into an Australian bank account, you generally don’t need an IBAN because Australia does not use the IBAN system.
2. Add payment details: Provide the details your customer needs to make the international transfer, such as Account name, BSB, Account number, SWIFT/BIC code, and Bank name and address. Make sure these details match the account you want the payment sent to.
3. Choose where to receive the payment: You can receive the money into a traditional Australian bank account or, if supported, a multi-currency business account. A multi-currency account can be useful if you regularly receive foreign currencies because you may be able to hold the funds in the original currency and convert them to AUD when needed.
4. Check and record the payment: Once the customer has made the payment, check that the amount received matches the invoice. Keep the invoice and payment records for your business so you can track your overseas income and meet your record-keeping obligations.

What Are the Tax and Reporting Considerations for Overseas Payments?

Receiving money from overseas does not automatically mean the payment is taxable. The tax treatment depends on what the payment represents and your circumstances.

Foreign-currency amounts generally need to be translated into Australian dollars for tax purposes. Different rules may apply depending on how the foreign currency is received and used.

Is money received from overseas taxable in Australia?

Not every overseas payment is treated in the same way for tax purposes. For example, money received by a business from an overseas customer for goods or services may form part of its assessable income, while personal transfers can have different tax treatment. Australian tax residents may also need to consider foreign income when meeting their Australian tax obligations.

Do you need to keep records of international payments?

Keep records that show what the payment was for and how much you received. These can include invoices, payment confirmations, exchange-rate information, bank statements, and other supporting business documents. Good records can make it easier to track overseas income and meet your tax and reporting obligations.

Common Mistakes When Receiving Money From Overseas in Australia

Receiving international payments can be straightforward, but small mistakes can lead to delays, unexpected costs, or payment issues. Here are the main mistakes to avoid:

• Ignoring exchange rate costs: The exchange rate used to convert foreign currency can affect the final amount you receive. A less favourable rate can reduce the AUD value of your payment.
• Providing incorrect payment details: Incorrect account numbers, BSBs or SWIFT/BIC codes can delay a payment or cause it to be rejected.
• Overlooking receiving and intermediary fees: International transfers may involve fees from your bank or intermediary banks, reducing the amount that reaches your account.
• Not allowing enough time for payments to arrive: International payments can take longer depending on the payment method, banks involved, currency, weekends, and public holidays.
• Not confirming the payment currency: Receiving a different currency from the one agreed with your customer can result in an unexpected conversion and additional costs.
• Failing to keep payment records: Missing invoices, payment confirmations, or exchange-rate records can make it harder to reconcile payments and maintain accurate business records.

How WorldFirst Helps Australian Businesses Receive Overseas Payments

WorldFirst gives Australian businesses a way to receive, hold, and manage international payments through one World Account. WorldFirst also gives businesses tools to manage their foreign currency, make international payments, and use their funds for day-to-day business expenses. Here’s how WorldFirst can help:

• Local receiving accounts and multi-currency holding: Receive payments using local account details in 20+ currencies and hold funds in 20+ currencies, giving you more flexibility over when and how you convert your international payments.
• Competitive FX rates: Convert your international earnings using WorldFirst’s FX service, with rates available around the clock. The current Australian pricing page lists an FX margin of up to 0.6% for major currencies.
• Marketplace collections: Receive payouts from 130+ marketplaces and payment platforms, helping e-commerce businesses centralise their international earnings.
• FX tools for future payments: Use spot contracts, forward contracts, or firm orders to manage exchange rates for international payments.
• World Card: Use your World Account funds for business spending with the World Card. Get 1% cashback on eligible purchases, zero FX fees in 15 currencies, and pay in 150+ currencies across 210+ countries and territories.

Ready to simplify how your business receives and manages overseas payments? Open a WorldFirst account and manage your international payments, currencies, and business spending in one place.

FAQs

1. How can I receive money from overseas in Australia?

You can receive international payments through a bank transfer, online payment provider, multi-currency business account, specialist money transfer service, or cash pickup. The right option depends on your payment type, currency, fees, and processing time.

2. What bank details do I need to receive money from overseas?

You may need your account holder name, account number, BSB, SWIFT/BIC code, and payment reference. The exact details depend on your bank, currency, and payment method.

3. Do I need an IBAN to receive money in Australia?

No. IBANs aren’t used for Australian bank accounts. For an international transfer, you may need to provide your BSB, account number, and the bank’s SWIFT/BIC code. The exact details depend on your bank and the payment route.

4. How long does it take to receive money from overseas in Australia?

The timing depends on the payment method, banks involved, currency, intermediary banks, and any compliance checks. International bank transfers can take longer when multiple banks are involved.

5. Can I receive foreign currency without converting it to AUD?

Yes. A multi-currency account can allow you to receive and hold supported foreign currencies before converting them to AUD. With WorldFirst, Australian businesses can hold 20+ currencies in their World Account and convert them when needed.

Sources:

1. https://www.worldfirst.com/au/pricing/
2. https://stripe.com/au/pricing
3. https://www.paypal.com/au/business/paypal-business-fees
4. https://pages.payoneer.com/payment-account-b2b/
5. https://wise.com/au/pricing/business
6. https://www.revolut.com/en-AU/business/business-account-plans/
7. https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/foreign-exchange-gains-and-losses/in-detail/guide-to-functional-currency-rules