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What to choose: a bank or a payment system? Features to consider when opening an account in 2018

2018-10-31

Recently, questions about opening an account for a partnership and for an offshore company have become topical. So, to create an account, you must first select a bank with which you can later work. Today there are many financial organizations - large global organizations and small local banks.
 
An alternative to banks is to work with payment systems that issue IBAN accounts to clients and operate on their own SWIFT system. To choose which is better - a banking institution or a payment system, it is necessary to determine what the difference is. To open an account for a company, you first need to determine which functions are required for its operation.

Bank Transfer

With the help of banks and payment systems you can make transfers. If you want to transfer money in the euro currency - the best option would be to use SEPA. Many EU banks support this option. This method of transfer is considered cheap, but it works only between banks located in a single system.

If you want to transfer money in dollars, use another system called SWIFT. Such transactions are more expensive, carried out quickly. On many continents, such translations are relevant with the choice of some functions - OUR or SHA. In the first case, the payer must pay a commission, including a correspondent bank. In the second case, the last payment is not needed.

Work with money in the account

Before starting a cooperation with a financial institution, it is recommended to find out how the selected bank works, whether there is a risk of closing the account in the near future. For example, if at the expense of jur. persons are transferred money that is immediately distributed from this account to others - the account will be transit. Such actions and manipulations with transit accounts are not welcomed by banks and payment systems.

This is due to the fact that every year financial institutions are audited, and if such an account is found, sanctions will be imposed on the bank or the system, there is a risk of license suspension. In this regard, all organizations check the movement of all accounts.

If the institution ceases to function, payments are provided for in some but not all states. In the EU, they amount to 100 thousand euros. In other countries, their size is different, or they are not provided for by law. Creating an account for offshore in the EU is difficult, but it is envisaged to open it in the PS. It is recommended to open an account in the PS, which is located on the territory of the European Union.

The question of how to ensure the safety of funds in the account is important and requires analysis. If you need to open an account to save the company’s money, some entrepreneurs cooperate with financial organizations in the following jurisdictions:

• Switzerland;
• Liechtenstein;
• Austria.

It should be noted that some banks impose conditions on the mandatory balance on the account, which can be withdrawn only after the latter is closed. Banks are considered investment, it is profitable for them to hold funds.

Reliability of banks and PS

Before working with financial institutions, it is recommended to pay attention to the availability of a license. For the full implementation of the activities of any such organization, it is necessary.

Financial institutions operate with a banking permit; an EMI license is required for the PS to operate. When choosing a bank or a PS, it is necessary to determine the state of the economy of the country where registration will take place. If the economy is stable, banks and PS will be in the same stable state as the accounts.