So, you already have a vision and a plan to expand your business beyond Malaysian borders. However, the question about the funds remain. Would it be possible for my overseas customers to pay directly to my company in Malaysia so that I don’t need to open multiple bank accounts in each country respectively? Well, yes, it can be done and here are a few options for you.

Good old Telex/Telex Transfer (TT)

When people talk about cross border/international payments, this is the first thing that will come to mind. TT service is generally provided by banks although in certain countries, it can be done at payment centres. For this reason, it is quite convenient for your customers to make payments to you. Simply drop by a bank and make the necessary arrangements.

So why isn't this the ONLY solution? Well, there are a couple of reasons. First, there are transfer fees to think about. When your customer transfers funds over to you, a certain amount of fee will be charged for that transaction. This transaction fees will differ between banks and countries. This might make things complicated for you if you’re looking for high volume of cross-border sales.

Transaction fees aside, you will also want to think about the settlement period. The time it takes for the funds to be deposited into your company’s account will vary. And vary greatly. Depending on the sender’s country regulation, the time period ranges from 2 working days up to a month. This too is a discouragement for sellers since it affects their cashflow forecast.

most importantly, TT services do not allow funds to be transferred via credit cards. Payments made via TT service must be deducted from buyer’s bank account which may limit the amount of purchasing that can be done. So, if you’re a seller, you need to take note of this.

Remittance Companies

First of all, what’s remittance? Is it just another word for payment? Well, yes, it is a form of payment. But remittance strictly applies to payments to individuals and not companies. At least in the Malaysian banking world.

You would notice plenty of start-ups popping up around you providing cross border money transfer very conveniently through mobile apps. While this can be done for personal remittance, Malaysian regulations does not permit Malaysian registered companies to receive funds via remittance services. And no, remittance can’t be done via credit card either. So, in other words, this won’t work for businesses with international transactions. However, what's good about remittance services is that the transaction rates are extremely low, and it is convenient for funds to be transferred.

MOTO

Mail-Order-Telephone-Order (MOTO). Do you remember the last call you received from a random insurance agent? You didn’t know who he was, but he sold you an insurance plan and you made the payment just by providing your debit/credit card details over the phone? That’s what we call a MOTO payment service. It allows the seller to charge their customers without even meeting face to face.

So, what’s so great about MOTO payment method? Well, first of all, it is the convenience for both seller and buyer to make cross-border transactions. The beauty about the MOTO service is that sellers can accept credit cards! This means that potential customers are able to make much larger purchases than any other payment solutions mentioned above.

What’s even better is that as a seller, the processing time for transactions are fixed because MOTO payments are done via debit/credit cards. What this means is that you will be able to receive the money in your company’s bank account in two working days. TWO WORKING DAYS! This is by far the fastest and easiest way to make cross-border transactions.

If MOTO is so convenient, why aren’t people using it everywhere? Actually, it is quite popular. As mentioned earlier, many telesales or call centres have been using this for decades. However, in the past, you need to purchase or rent a MOTO machine called ‘Virtual Terminals’ from banks in order to offer this service. It is expensive, bulky and is stuck to the office desk. Today, you can get a digital MOTO service that can be operated from a mobile app.

Mobiversa offers such an app called EZYMOTO. It is the first and only one in Malaysia that provides MOTO service at the convenience of your mobile phone.