7 Best International Online Banks for Entrepreneurs

As an entrepreneur who works online, you will need either an online bank or a payment processor or both. It depends on the nature of work you do online. If you directly sell digital goods or have an e-commerce website, then you will surely need a payment gateway or payment processing company. These companies help to receive payments from your customers on your behalf. Then you need to link your local bank account with the account you created with these companies, through which you will receive the money in your local bank. But if you sell from a third-party site like Amazon, you will need to link an online bank to your amazon sellers account. These third-party stores pay you through the online bank. Then you can transfer your funds from your online bank account to your local bank account. You will learn some recommended online banks for entrepreneurs in this article.

best online banks worldwide — Source: Lorman.com

Before revealing these online banks, there are some banking terms that are used interchangeably. But in reality, they don’t mean exactly the same thing. These terms are: Online Banking and Online Bank.

Online Banking vs. Online Bank

Almost all local banks provide an online platform through which their customers can access their account details. The most common platform is the mobile bank app. Online Banking is popularly known as internet banking. The platform can be accessed directly through web browsers or through mobile bank app. On the other hand, an online bank is a bank in which their customers create and setup account online without any need to visit a physical branch. The bank may or may not have a physical branch. But their customers access their details and carry out transactions online. They also have online customer care representatives that help their customers solve their challenges. Online bank is mainly meant for international customers, especially from countries where the hosting bank does not have a physical branch.

These days, all banking have online banking platforms. But not all banks offer full online bank which users can operate without visiting a physical branch. For most local banks, before you can have a fully functional bank account, you must visit one of the physical branch. This is unlike the ones that offer online bank.

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Things to Consider When Choosing an Online Bank

Online banks are perfect options for those who are used to the internet and understand cyber security better. Also, if you need a free checking account that allow you keep a small as $1 in your account balance, then go for online bank. You can also earn interest on checking account, but rate is usually smaller than that of a savings account. But before you can qualify for a checking account in brick-and-mortar banks, you must have a large account balance or have your paycheck deposited automatically. But their interest rates are higher than those of online bank checking account.

There are different online banks that suit entrepreneurs with a particular need. Kate Ashford wrote on tips you need to know in order to choose a suiting online bank for your business.

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Best Online Banks

Payoneer

This is a finanancial service company that offers business owners, freelancers, affiliates and online sellers multiple ways to pay and get paid by international clients online. When you sign up with them, you get separate bank account for USD, GBP, EUR and JPY currencies. These means you can be paid by companies in these countries. Payoneer also allows you to bill your clients directly. You can also receive funds from other Payoneer users. The USD account is a checking account.

Payoneer also offers a MasterCard with which you can withdraw your funds in any ATM worldwide. Once you order a card, they charge you an annual card maintenance fee of $29.95. You can also transfer your funds from your Payoneer account to your local bank. Also you can convert your funds from one currency to another. You pay zero fee for opening the account, no minimum deposit or balance. You can also earn free $25 once you refer your friend to open account with Payoneer. Once your friend receives up to $1000, both of you earn $25 each.

So if you are looking for an online bank you can open from any country in the world, Payoneer is the first option. You will need only a Valid National ID card.

Ally Bank

This is an American online bank that offers checking, savings and money market accounts. They also certificate of deposit, auto loans, credit cards, investment products and mortgages.

The checking account is interest-based. It also gives you the option to transfer funds between banks. For international transactions, they charge you 1% of the transaction. Read more about this online bank.

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Other Online Banks that Offer Free Checking Account

According to an article by Rob Berger at DoughRoller.net, here are the banks that offer free checking account:

Chase Bank
TD Bank
Wells Fargo
Chime
FNBO Direct

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Conclusion

You now know the international banks you can open to help you pay your clients and receive funds. Most of these banks restrict users from other countries outside their country of the bank from creating account with them. But if you need an online bank you can access from any country, then try Payoneer.

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