Nonresident Bank Account in the United States
Globalization makes it possible for International trade to happen with the modern day technologies and demands available in the market. The United States is a combination of both consumer market and a capital market, contributes the largest stake in the International trade. In 2016, United States alone contributed to $3646 billion in International trade. With this amount of trade happening in the U.S., the trade partners always prefer to have a non-resident bank account in U.S. to make the payment options easier for their business partners.
The predominant method of making B2B payments in the U.S. are Cheques and ACH transfers. To provide with these features, the trade partner should have a bank account in U.S. However, it is usually not a cakewalk for a non-resident to open a bank account in the United States as it might sound. Post-Sep 11 terrorist attack in the U.S., the banking regulations, especially for nonresidents have been made very narrow in order to prevent terrorist financing and anti money laundering.
To open a non-resident bank account there are 2 possible options, one being approaching banks in U.S. which have branches in your home country, or either visit the United States and approach a bank and open an account with them providing your KYC credentials. The first options sound quite a lot easier when compared to the later but equally accompanied with practical difficulties. Banks like Citi, HSBC, Standard Chartered provide these services for their premium customers. Customers could provide documents in the branch in the home country and they could review the documents and provide with a non-resident bank account. However, they expect to have a hefty sum to have as an average minimum balance applicable for these kinds of accounts.
The second option is to travel to the United States and open a bank account by physically approaching a bank to open a non-resident bank account. Even though it is completely legal to open a non-resident bank account in the US, due to their internal policies, banks like Chase, Popular Community bank could not provide these services. Most of these banks require an SSN (Social Security Number) to open a bank account, which a tourist cannot have. However, banks like Bank of America, Wells Fargo, Capital One, Santander Bank provide a bank account with your own country passport, and provide with a payment account with a welcome kit, containing few leaves of cheques and a Visa/Mastercard debit card to use the money in your account.
The second option is to travel to the United States and open a bank account by physically approaching a bank to open a non-resident bank account. Even though it is completely legal to open a non-resident bank account in the US, due to their internal policies, banks like Chase, Popular Community bank could not provide these services. Most of these banks require an SSN (Social Security Number) to open a bank account, which a tourist cannot have. However, banks like Bank of America, Wells Fargo, Capital One, Santander Bank provide a bank account with your own country passport, and provide with a payment account with a welcome kit, containing few leaves of cheques and a Visa/Mastercard debit card to use the money in your account.
The other possible way for a business to open a non-resident bank account will be to incorporate a business in the US remotely and open a bank account using the registered business. However, it equally comes with problems like filing taxes and other documentations.
What you can't do with a non-resident account
Non-resident accounts can't be used for money laundering or taking out payday loans.
Virtual Bank accounts as an alternative
Virtual bank account makes an alternative for customers who cannot either go for anyone of the possible options, it is good to open a virtual bank account, with easy documentation, with zero hierarchies when compared to a bank with a brick and mortar presence. B2Bpay provides with virtual European bank accounts for traders across the globe to easily accept European payments and transfer the money globally.