As a freelancer in Nigeria, working with clients in the US can open up more opportunities to earn in dollars. However, receiving international payment is not always straightforward. Many US clients use ACH transfers to pay freelancers and they may ask you to provide a US bank account number and routing number before sending your payment.
Your regular Nigerian bank account doesn’t have the US banking details required for a domestic ACH payment. This can make it difficult to receive payments from clients who prefer this method.
In this article, you will learn how ACH payments work, how to receive them as a freelancer in Nigeria, the fees involved, and how long it takes for your money to arrive.
What Are ACH Payments?
ACH stands for Automated Clearing House. It is a US electronic payment network that moves money between participating banks and credit unions. ACH is the standard domestic transfer network used by banks and payroll systems across the US. Businesses and individuals use it for transactions such as salary payments, bill payments, and other bank transfers.
Can Freelancers in Nigeria Receive ACH Payments?
Yes. You can receive ACH payments while living in Nigeria if you use an eligible account that supports incoming ACH transfers. Your regular Nigerian naira bank account doesn’t offer the US routing and account numbers that a domestic ACH payment requires. However, a compatible USD bank account from a financial service can provide the necessary details.
Pouchers offers a virtual USD account with a US checking account number. After you complete the required identity verification and your account is approved, you can access your account details and use them to receive supported payments. ACH is one of the payment methods its USD account supports.
This means you don’t necessarily need to open a traditional US bank account in person to receive eligible ACH payments. You can use your Pouchers USD account details when a client or payment provider accepts them.
Benefits of Accepting ACH Payments for Freelancers
1. Get paid through a popular payment method
Many US businesses already use ACH for payroll and business payments. If your account supports ACH, your client can use a familiar domestic payment process instead of arranging a separate international transfer. This can make payment easier to organize, especially when you work with a client on a monthly retainer or complete projects regularly.
2. Pay less than you would for an international wire
International wire transfers involve sending-bank fees and charges from other banks involved in the transfer. ACH uses the US domestic payment network, so it avoids the intermediary-bank costs associated with international wires. Hence, ACH transfers are usually cheaper than than wire transfers.
3. Save your earnings in US Dollars
You don’t have to convert your freelance earnings to naira as soon as you receive them. With Pouchers, you can keep your money in your USD account and save in dollars until you need to spend or convert it. This gives you more control over your foreign-currency earnings and helps you build your dollar savings over time.
4. Manage payments from different clients
If you work with several US clients, using one USD account can help you manage all your freelance payments in one place. You can share your account details with clients who pay through ACH, monitor incoming transactions, and keep track of the money you have received.
How to Accept ACH Payments with Pouchers
As a freelancer in Nigeria, you can use Pouchers USD account to receive ACH payments from US clients. Pouchers account provides a US checking account details, allowing you to receive payments directly in dollars. Here’s how to get started:
Step 1. Create a USD account
- Download the Pouchers app from the Google Play Store or App Store and sign up. If you already have a Pouchers account, simply sign in with your details.
- Next, select “USD” on the homepage and click “Activate Wallet”.
- Select “Activate USD Account” in the subsequent page and click on “Activate Fiat”. Next, click on “Activate USD Account”
- Enter your details and provide the required identification documents and activate your USD account.
Step 2: Copy your USD account details
Open the USD account section on the homepage and copy the account details provided for incoming payments.
Step 3: Share your account details
Share your Pouchers USD account details with your client so they can send your payment through ACH. This includes your account number and routing number.
Step 4: Track the incoming payment
After your client initiates the transfer, check your Pouchers USD balance and transaction history. Standard ACH transfers typically take one to three business days to arrive in a Pouchers USD account, although the actual timing can vary.
Why Use Pouchers to Receive ACH Payments?
1. Hold your earnings in Dollars
You can keep eligible payments in your USD balance instead of converting every payment to naira immediately. This can be useful if you receive regular payments from overseas clients and prefer to hold your earnings in Dollars rather than convert them..
2. Convert and withdraw your money in Naira
When you need naira, you can convert the money in your USD account and withdraw the funds to your Nigerian bank account. Converting your USD to Naira is free and fast: your funds typically arrive within minutes. This allows you to manage your foreign-currency earnings and access Naira whenever you need it.
3. Security
Pouchets uses SSL certificate encryption, biometric authentication and two-factor authentication to protect your data and funds from theft. You can rest assured with Pouchers, knowing that your money is safe and no third-party can access your account.
4. Spend your USD online
Pouchers also offers a virtual dollar card which you can fund with your USD wallet and use it for supported online purchases and subscriptions. This gives you another way to spend your dollar balance without first converting the money to naira.
5. Enjoy low fees with no hidden charges
Pouchers offers low, transparent fees with no hidden charges, helping you receive and manage your freelance earnings without unnecessary costs. Creating an account is free and there are no monthly maintenance charges.
How Much Does It Cost to Receive ACH Payments?
Pouchers charges a 0.7% fee for incoming ACH payments, with a minimum of $2 and a maximum of $10 per transaction. For example, if a client sends you $100 through ACH, 0.7% of that payment is $0.70. Because Pouchers’ minimum ACH fee is $2, the receiving fee would be $2. You would have $98 remaining.
For a $1,000 ACH payment, 0.7% equals $7, which falls within the stated minimum and maximum. The receiving fee would therefore be $7, leaving $993.
How Long Do ACH Payments Take?
ACH payments to your Pouchers USD account typically take one to three business days to arrive. The processing time depends on when your client initiates the transfer and the time taken by the sending bank and receiving service to process the payment. Other factors that can affect when your money arrives are:
- Payment cut-off times: If your client initiates a transfer after their bank’s processing cut-off, the bank might process it on the next business day.
- Weekends: Standard ACH processing follows business-day schedules, so a payment initiated on Saturday or Sunday might not begin processing until the next business day.
- Public holidays: US bank holidays can delay processing.
- Bank and account checks: A bank or payment provider might need additional information or verification before crediting the payment.
Frequently Asked Questions
1. Can I receive ACH transfers in Nigeria without a US bank account?
Yes. Pouchers provides a virtual USD account with US checking account details for supported incoming transfers.
2. Does Pouchers USD account accept payments from US clients?
Yes. Pouchers USD account supports incoming ACH transfers to its USD account. Share your account details with clients who can pay through ACH.
3. What bank details do I need?
You generally need your US account number and ACH routing number, which you can find in your Pouchers USD account section.
4. How long does a transfer take?
ACH transfers to your Pouchers USD account typically take one to three business days.
5. Is ACH cheaper than an international wire transfer?
ACH payments usually cost less than international wires. Pouchers charges 0.7% for incoming ACH transfers, with a minimum fee of $2 and a maximum of $10.
6. Can I receive money from Upwork through Pouchers USD account?
Yes. Pouchers USD account supports payments from Upwork and many other freelancing platforms
7. Can I keep my earnings in dollars?
Yes. You can hold payments in your Pouchers USD account. You can also convert them to naira when needed and withdraw the funds to your Nigerian bank account.
Conclusion
ACH transfers make it easier for Nigerian freelancers to receive payments from US clients. However, your regular Nigerian bank account doesn’t provide the US banking details needed for domestic ACH transfers.
With Pouchers, you can get a virtual USD account with US checking account details to receive supported ACH payments. You can keep your earnings in dollars, convert them to naira when you’re ready, and withdraw to your Nigerian bank account.
Download the Pouchers app to open a USD account and make receiving payments from your US clients easier.
