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Where can a US citizen open a European bank account that allows SEPA transfers denominated in euros?
Hello! Thanks for your question about where a US citizen can open a European bank account that allows SEPA transfers denominated in euros. The short version is that they are several options available for this. Some options are B2B, Payoneer, Paydek, Citibank, and UBS. Below you will find a deep dive of my findings.
METHODOLOGY
My colleague and I scoured the Internet for reports, articles, studies, or charts/graphs that contained any information European bank accounts that allowed US citizens to do SEPA transfers denominated in euros. We found several websites that explained SEPA as well as banks that will allow such transactions. We have identified 3 virtual bank options and 2 established bank options.
FINDINGS
While you have been able to bank across the country, SEPA transfers now are able to guarantee euro payments are made promptly and in full. They set a guaranteed time of delivery and banks are not allowed to make any deductions to the amount transferred. There is only one bank account needed for the whole euro area as well, which makes it more convenient. There are regulations in place to make sure that there are no hidden charges and to make sure they don't hold your money for a time before releasing it to your account. Some things you will need to know are your Bank Identifier Codes (BIC) and your International Bank Account Numbers (IBAN).
B2B Pay
B2B Pay is a virtual bank and with B2B Pay you can open a non-resident bank account in Europe. The B2B rules for starting your account are to upload your documents which is a two-step authentication process to cover KYC/AML regulations. Once they have reviewed documents and gotten your bank details, your account will be set up. With B2B, you can exchange money with 35 countries and they guarantee payment within 2-12 hours. B2B uses IBAN to integrate with marketplaces and payment gateways giving them access to the premium brokers and allowing them to do global payments in 138 different currencies. They also promote that they save €30 SWIFT plus 80% in fees by only charging 1% when transferring money back to home account. They provide you with notice of incoming payments. B2B cross-border payments are paid in euros.
Payoneer
Payoneer allows you to have a bank account so you can do international transfers. They allow international companies to send you payments as if you were a local bank. Currently, Payoneer supports the regions of United States (USD) / Transferred via ACH
Europe (EUR) / Transferred via SEPA, United Kingdom: England, Northern Ireland, Scotland, and Wales (GBP) / Transferred via BACS and FPS, and Japan (JPY) / Transferred via Zengin. Payoneer is ranked in the top 100 Inc financial service companies. They boast saving 71% using Payoneer. The website indicates receiving payments is free when you receive from another Payoneer customer or when using a receiving account. If you use their billing service to receive payments there is a charge of 3% on CC payments, 1% for electronic checks and using the marketplace varies on fees. The sign-up process does include a security section to verify who you are in according with KYC regulations. Payoneer did not have any information on their website about how fast payments were made, but they had a customer "review" that said 2-3 days so if that is accurate, this would not be near as fast as other options. This service does not have any minimum amounts or minimum transfers/payments required.
Paydek
Paydek allows virtual US and EU accounts that handle SEPA payments. The setup process includes an identity verification to comply with AML(KYC) laws and they state it doesn't take more than 48 hours for verification. They allow payments to your Paydek account via bank transfer in SEPA funds from other Paydek customers or via credit card. They offer transfers between 120 countries and 60 currencies. Paydek will provide you with your own IBAN account at a local European bank (with your name on the beneficiary line) for SEPA transfers. Paydek does list all the fees that pertain to the account. Loading and withdrawing funds have a $50 charge. This service does not have any minimum amounts or minimum transfers/payments required.
CITIBANK INTERNATIONAL
Citibank allows international accounts and transfers between US accounts and Global accounts. They state they are as strong of a bank as you can imagine and have offices in over 100 countries with 200 million accounts. You can transfer money via SEPA in euros without any costs to any other Euro accounts. It does state that it provides you with a relationship manager who will help with the information needed to do the transfers. They do state that funds usually clear within three days and can be transferred between 30 countries. The daily transfer limit is £10,000 to £25,000 per day for online payments. Citibank does list their fees and it varies by where you are sending and receiving money. They do require a minimum balance of US $200,000 or currency equivalent. They have a 2% fee for balances below the minimum balance. This is a very high number but it can include assets under management by them.
Union Bank of Switzerland (UBS)
UBS does allow for international transfers. They have a SEPA payment that will transfer in euros. They have online banking and mobile banking that allows you to pay and transfer internationally. Their product is called UBS easy international. They call it the easy way to make a payment internationally from home. You can set up a personal account for incoming and outgoing funds. It can be set up in euros. You have to have at least CHF 10,000 (equivalent in euros) in the account or have assets with them of that much. One of the fees is a 35% withholding tax if your gross interest exceeds CHF 200. If you maintain CHF 10,000 the monthly fee is CHF 5 and if it's under 10,000 the monthly fee is CHF 7. They have a .60% p.a. on balances of over 1mn euros. They do have a listing of other miscellaneous fees. UBS does follow all AML/KYC laws and does a video call as part of the setup process. You need to have your passport available at the time of the call.
CONCLUSION
To wrap it up, we have identified several options where US citizens can open a bank account that allows SEPA transfers denominated in euros. There are three virtual bank options and two established banking options. We have identified fees and minimum balances required with each of the options as well as identified the KYC/AML restrictions on opening the accounts. If you are looking for a non-virtual bank and minimum balance is a factor then UBS would be an optimal choice. Citibank International is a great optioin if the opening balance minimum is not a factor. As far as virtual banks go, Paydek is a good option, because it actually opens an account at a European bank in your name to allow the payments.
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