The Best Way to Open a Euro Account in the USA
Euro accounts are useful if you need to transact in the EU or the SEPA area. Although US residents and businesses might find it difficult to open a EU bank account remotely, a variety of other options — including EMIs — exist.
Key Takeaways
- Individuals and businesses in the US may need to transact or hold the euro (EUR) for business, commercial, and personal reasons
- It is often difficult for remote customers to open an account with an EU bank, but you may be able to do so if you meet the necessary requirements
- EMI services provide a simpler, global alternative to traditional bank accounts
The EU boasts a large and highly interconnected banking system defined by an international currency — the euro (EUR) — and the Single Euro Payment Area (SEPA).
There are currently 36 countries in the SEPA zone, including France, Germany, Spain, Italy, and Poland. SEPA also includes some non-EU countries, such as the UK.
If you’re an individual or business in the US, you might need to transact in EU and SEPA countries for commercial purposes, for regular spending, or while sending money between friends and family. This article will help you find a service that is right for you.
Can I Open a Euro Account From the US?
It is possible to open a euro bank account if you reside outside of the EU and in the United States. However, there are complications around doing so.
EU policy states that legal residents of the EU have the right to a basic payment account in any member country. This guarantee does not extend to US residents.
Some countries nevertheless have banking systems that cater to non-residents. Estonia offers an e-residency program that provides foreign access to its banking system. Portugal is also known for allowing non-EU residents to obtain a NIF tax identification number and open certain bank accounts. Other countries may offer similar opportunities.
If you intend to open a business bank account, you’ll need to meet certain additional requirements. You might need to register your business in an EU country, obtain a business address, get a tax identification number, and satisfy demands specific to each bank.
If you cannot obtain an EU-based bank account, some US banks provide options. HSBC, for instance, offers a Global Money Account that supports the euro and other currencies.
Electronic money institutions (EMIs) like Payset provide another alternative that is simpler than any traditional bank account. At Payset, we allow users to hold and transact a euro balance in an IBAN account. We also support various other currencies, including the US dollar (USD).
Banks vs EMIs for EUR Accounts
There are numerous key differences between traditional banks and EMIs.
Traditional banks and financial institutions are subject to heavy regulation. They typically operate as networks of real-world branches that cater to local customers. Banks provide a wide variety of financial services, such as loans and credit, alongside standard accounts.
By contrast, EMIs focus on online transactions and rarely provide in-person services. This digital approach allows EMIs to serve a broader range of customers and locations.
The EU's Electronic Money Directive (EMD) established a framework for EMIs in 2009. This allowed EMIs to operate and offer services such as IBAN accounts, payment processing, e-wallets, and other financial tools without obtaining a full banking license.
Though EMIs originated in the EU, the model has spread worldwide. Payset is based in the UK and is regulated under the FCA. We serve users globally, including those in the US and EU.
Benefits of an EMI vs a Bank Account
Multi-currency support: EMIs such as Payset offer accounts with support for multiple currencies, including EUR and USD. By comparison, basic bank accounts offered by EU banks typically support the euro and the country’s local currency.
Competitive exchange rates: EMIs provide competitive exchange rates. Payset provides real-time exchange rates and visible margins so that customers receive an optimal and transparent rate at any time.
Fast setup: Banks have extensive sign-up requirements and may require account applicants to visit in person. By contrast, EMIs rely on online signups and can provide rapid account access. At Payset, we usually provide account access within 72 hours of sign-up.
Low fees and requirements: EMIs often have lower fees than banks. Some EMIs do not impose transaction limits or minimum balance requirements. Features vary between services.
Worldwide access: European banks are accessible within the SEPA area, but EMIs aim to be even more accessible by providing services around the world.
Documentation and Eligibility
If you open a personal bank account, you’ll need to provide several pieces of information regardless of whether you choose a bank or an EMI service.
You’ll need to provide identification, such as a personal ID card, driver’s license, or passport. You probably need to provide proof of address, such as a utility bill or bank statement.
Before signing up for any service, make sure you reside in a country that the service supports. You can see Payset’s list of supported countries for details. Also note age requirements: Payset requires users to be at least 18 and of legal age in their own jurisdiction.
Business users sometimes need to provide more extensive information. At Payset, we might ask you to provide details about your business type, your business sector, the region you operate in, your approximate monthly turnover, and supporting identity and registration.
Some services will also ask for more extensive documents, including but not limited to proof of residency, proof of employment, and proof of income.
Be sure to submit complete and accurate information to ensure approval.
Open a Euro Account With Payset
If you choose to open an EMI account, consider Payset. We allow you to send, receive, and convert funds through your account in a simple and affordable manner.
We provide multi-currency IBAN accounts and conversion services for a variety of currencies, including EUR and USD. We facilitate euro transfers via SEPA and SWIFT. We permit US transfers over SWIFT, ACH, and a variety of other networks.
In total, we support holding 34 currencies in-account and facilitate the instant exchange of 38 currency pairs. We offer payment services to and from more than 180 countries.
Combined with competitive fees and rapid support, we provide a strong option for anyone in the USA who needs to transact in euros on a regular basis, whether for business or personal reasons.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
- Account holders can send and receive money with other Payset users for free.
- Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS.
- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
How is Payset regulated?
Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).
How do I add money to my account?
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
Types of Multi-Currency Accounts
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