Etsy Payments

Monzo Chat Business Banking
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Hi All,

We have just opened a Monzo Business account. We sell a lot on Etsy but want our payments to be sent to our Monzo business account, however, Monzo tells me they don’t accept any payments in any other currencies but GBP.

We don’t want to use transferwise as this would just complicate things has anyone worked out a way around this problem?

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Not at the moment until international payments added, don’t think there is currently a time frame for it.

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Thanks for your reply.

It seems a little silly having a business account and only being able to trade in GBP. Looks like we’ll be closing our account before we have even started.

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I’ve never sold on Esty, so don’t know the ins and outs, but could you switch things to get paid on Etsy in GBP? It’s listed as a supported currency, so this maybe this is possible?

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Lower down on that page it says:

Sellers, please be advised that the currency in which your Etsy Payments funds are deposited is set in accordance with the currency of the country in which you hold your bank account.

Which sounds like Etsy wouldn’t be sending non-GBP payments anyway? (Full disclosure, I’ve never sold on Etsy either.)

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I’ve tried this but thats how a Etsy shops receives money! When money is withdrawn it’s always sent in USD.

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Strange, as that doesn’t tally with what I’ve quoted. Had a little Google and found this, maybe following the steps listed there could help? If not, contacting Etsy support might be an idea

Hope you get this straightened out one way or another.

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I get what you are saying but Etsy convert all payments that go out to sellers into USD for whatever reason. So although shop can take payments in different currencies from buyers seller always get monies from sales in USD. Nightmare! Thanks for your help and research.

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I understand, sorry I couldn’t be of more help. I would definitely suggest contacting Etsy support, though, and quote back the quote from my first reply at them if needed, because that does seem to say they should be paying you in GBP.

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Do you list your items in GBP or USD? My partner has an Etsy account and lists in GBP, has a GBP bank account registered and gets paid in GBP.

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Yes we always list in GBP. Our Etsy payments are downloaded to our Business account and a currency conversion fee is always taken. It’s driving me up the wall because we’ve paid £100’s in conversion fees via Metro Business Bank.

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If you have specialised currency requirements, I’d recommend a specialised business account.

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Hmmm that’s strange. I’ll have to check with her later if there is an conversion involved but I don’t think there is. I know her fees are charged in USD and she pays them straight from her shop account, so there must be some conversion going on there!

Seems ridiculous that they’re converting it into USD for no reason. I bet they use a crappy exchange rate too.

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I’m almost certain it asks if you’re expecting international payments during the sign up process. Did you tick ‘no’?

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confirm: observed a request during sign-up (just a few days ago).

This is requested in context of validating if the business qualifies for Monzo business account. At the same time Monzo clearly identifies a supported FX service provider (TransferWise).

Cannot comment on impact to to the new biz account of indicating being recipient of foreign currencies too. This is because this was not the selection made - and as such I confirmed receipt of GBP into the biz account.

-//-

However, if there is a need for your business to receive foreign currency - would it be compliant (with Monzo policies) to make use of a UK/EU regulated FX service provider such as CurrencyFair, Moneycorp, etc?

This could potential grant superior exchange rates, reduced SWIFT fees, and enhanced clarity on timeline for deposit into account. Importantly the transfer from FX dealer to Monzo biz account would be made in GBP and within jurisdiction governance.

{edited to remove referral link to CurrencyFair; which was flagged as community spam & therefore I offer my apologies}

cross-link to request for CurrencyFair/Monzo integration (in addition to TransferWise)

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Recall somewhat similar observations with e-commerce platforms (e.g. Airbnb, Paypal) which appear to use USD as their underlying currency:

  • Whilst the seller can list in a choice of currencies, and has a choice for payment currencies - if the seller opts for anything other than USD then they incur ~4% conversion loss each time.
  • Therefore it would be more prudent to retain the payment currency as USD, and have this deposited in USD denominated bank account – or take advantage of FX dealer that provides considerably superior rates for electronic transfer.
  • Optionally: when you have regular foreign currency transactions you might want to approach FX dealer to lock-in the specific rate for a period of time. This can be mighty handy for overseas mortgages, and hedges from currency fluctuations that could otherwise cause havoc if funding from pension income. FX dealer might be willing to extend such a scheme for income Etsy e-commerce income streams…

note: for Airbnb the currency that is displayed to the buyer might differ again, and reflect buyer’s preferences rather than that of seller (i.e. seller lists in BHT, yet buyer observes price listed in EUR)

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