If you are going to have someone send you funds by means of an international bank wire, what instructions should you give to them? Thirty years ago my firm did what I suppose most firms do. We went to our bank we asked our bank what to tell the sender. Our bank very promptly and cheerfully provided detailed “incoming bank wire instructions” including a Swift code and an ABA routing number. We then dutifully provided this information to all of our foreign associates for use in paying us for the work that we do for them.
It turns out that this is approximately the stupidest thing to do.
Our patent firm has changed banks from time to time over the years. But what has not changed is that each bank has charged us some amount of money for each incoming bank wire. Our most recent bank (Wells Fargo) usually charges us at least $16 for each incoming foreign bank wire, or as much as $33 if it feels the wire required “repair” (whatever that means). I cringe now to realize that during these decades our banks over the years have charged us many, many thousands of dollars in bank fees for our incoming foreign bank wires.
And the same is true for incoming foreign bank wires to my personal bank account.
Imagine how stupid I feel to have discovered only in recent days that there are common-sense ways to receive foreign bank wires that do not incur bank fees, for businesses and for personal accounts. Continue reading