Receiving Money from Overseas Without Heavy Fees in Malaysia

The moment a sale closes is rarely the moment the cash arrives in the bank for many Malaysian SMEs with overseas customers. Between the customer hitting pay and the funds landing in MYR, the payment moves through card networks, intermediary banks, FX conversions, and sometimes compliance checks that can stretch days into weeks. Each step quietly takes a small percentage, and by the time everything settles, the margin on a 1,500 USD invoice can be visibly thinner than expected.

A proper alternative is needed for overseas customers. Even so, the fix is not to chase the lowest headline fee, but to understand what each inbound payment option actually costs after factoring in FX spreads, intermediary deductions, and reconciliation time. 

Below are the four main ways Malaysian businesses receive cross-border payments for Malaysian businesses, the trade-offs each one carries, and the compliance points to consider.

Option 1: International Card Payments Through a Gateway

The most common way Malaysian SMEs accept payments from overseas customers is via international Visa and Mastercard, processed through their payment gateway and settled into a local MYR account. Customers pay in MYR or, where supported, in their own currency through dynamic currency conversion. 

This works well for one-off purchases, e-commerce checkouts, and consultation fees. However, the catch with international payment gateways in Malaysia is that international card transactions typically carry higher fees than domestic ones, often around 3%, plus an FX spread baked into the conversion rate.

Option 2: SWIFT or Telegraphic Transfer (TT)

For B2B transactions, larger invoices, and export shipments, telegraphic transfer through the SWIFT network remains common. The customer’s bank initiates a wire to the merchant’s bank, typically passing through one or two correspondent banks before reaching Malaysia. 

The appeal of this option is its simplicity for the merchant, but there are hidden costs, such as intermediary bank fees deducted in transit (often without notice) and the FX rate at the receiving bank, which is rarely the mid-market rate. In practice, a 5,000 USD invoice may arrive at 4,920 USD after deductions, with settlement typically taking two to five business days.

Option 3: Multi-Currency Business Account

A multi-currency account lets a Malaysian business hold balances in several currencies, typically USD, SGD, EUR, GBP, and AUD, without requiring every inbound payment to be converted to MYR immediately. The advantage is FX timing control, as the business chooses when to convert based on rates rather than when funds arrive.

This works particularly well for businesses with regular overseas income that also pay foreign suppliers or USD-denominated subscriptions. But the trade-off is monthly fees, minimum balances, or per-transaction charges weighed against the FX savings.

Option 4: Third-Party Global Wallets

Global digital wallets are widely used by international customers, particularly for B2C purchases and online services. The customer pays from their existing wallet; the merchant receives the funds in the wallet’s settlement currency, and the funds are transferred to the merchant’s local bank account. 

This has the benefit of customer familiarity, but the drawback is its cost structure, with transaction fees and FX margins typically higher than those of direct card processing, plus a withdrawal step between the wallet balance and the merchant’s bank account.

Side-by-Side Comparison: Speed, Cost, and FX Handling

None of these methods is universally cheaper or faster. The right choice depends on customer geography, transaction size, and collection frequency.

Method	Typical fee structure	Settlement speed	FX handling	Best suited for
International cards via gateway	Approximately 3% per transaction, plus FX spread	Standard gateway cycle, typically T+1 to T+2	Converted to MYR at gateway rate, settled locally	E-commerce, one-off sales, mid-value invoices
SWIFT or telegraphic transfer	Fixed wire fee, plus intermediary deductions	2 to 5 business days	Converted by the receiving bank, rate varies	Larger B2B invoices, export proceeds
Multi-currency account	Monthly fees or per-transaction charges, plus FX on conversion	Funds available in foreign currency on arrival	Held in original currency, converted at chosen time	Regular overseas income with matching expenses
Third-party global wallets	Higher percentage fees plus FX margin	Wallet payout cycle to local bank	Converted at wallet rate	B2C, smaller-value international sales

For most Malaysian SMEs, the practical answer is a combination rather than a single method. International cards through a gateway cover most one-off customer payments, while TT or a multi-currency account handles larger B2B flows. 

The best way for how to receive money from overseas in Malaysia efficiently is less about finding one perfect channel and more about routing each inbound payment through the option that costs the least for its profile.

Common Pitfalls: FX Spread, Intermediary Fees, and LHDN Reporting

The cost differences between methods are usually clear on paper. Still, there are three less-visible places where friction can be found:

• FX spread: The gap between the mid-market rate and the rate offered by the bank or gateway. A 2 to 3 per cent spread on a 10,000 USD payment is RM800 to RM1,200, which never shows up as a line item.
• Intermediary bank fees: On SWIFT transfers, correspondent banks deduct fees in transit, often without notifying either party. Reconciling the gap takes finance time.
• LHDN and BNM compliance: Malaysian exporters must repatriate export proceeds within six months under Bank Negara Malaysia’s Foreign Exchange Policy Notice 7. Inbound payments also need accurate tax records, particularly for businesses under the e-invoicing mandate.

Each pitfall compounds at scale. A business processing 30 international invoices a month with an average 2.5% FX spread loses a meaningful margin over a year, none of which appears on any single transaction record.

How Razorpay Curlec Handles International Card Payments

While accepting international payments seamlessly may seem complicated, Razorpay Curlec is designed with that in mind and accepts international debit and credit card payments from customers worldwide, with funds settled directly into the merchant’s Malaysian bank account in MYR. International card acceptance is available across all Razorpay Curlec products: payment gateway, payment pages, payment buttons, payment links, and invoices. The same dashboard handles local and international transactions, which removes the need for a separate cross-border setup.

For Indian customers specifically, Razorpay Curlec supports UPI and other Indian payment methods through its parent network; if you’re a Malaysian merchant, this is a cheaper alternative to international cards for that corridor. Cross-border collections through a global wallet partner are also available, and all cross-border transactions run through BNM-regulated infrastructure with 3D Secure 2.0 authentication.

Build an Inbound Payment Workflow That Holds Margin

For Malaysian SMEs with overseas customers, the cost of cross-border payments depends on how each inbound transaction is routed. The same 2,000 USD invoice can cost meaningfully different amounts depending on whether it arrives via a card, a wire transfer, a multi-currency account, or a wallet. With that, the ideal path is to design your inbound workflow around those differences, with a focus on cross-border payments.

Cue Razorpay Curlec, where our international payment gateway is designed to provide Malaysian businesses like you with a single dashboard for local and international card collections, MYR settlement to a local bank account, and support across all Curlec products. Our infrastructure is regulated by Bank Negara Malaysia, certified to PCI DSS, and built to handle the FX, fraud, and compliance layers, ensuring you get the cross-border revenue you expect.

Frequently Asked Questions About Cross-Border Payments for Malaysian Businesses

Can overseas customers pay through FPX?

No. FPX requires a login at a participating Malaysian bank, which overseas customers without a Malaysian bank account cannot access. The practical options are international card payments through a payment gateway, telegraphic transfer through SWIFT, a multi-currency account, or a global digital wallet. International card payment is typically the most accessible for one-off sales.

What is the typical fee for accepting international card payments in Malaysia?

International card transactions are usually priced at around 3% per transaction, higher than domestic Malaysian cards. In addition to the headline fee, an FX spread is applied when converting to MYR. The effective cost depends on transaction volume and the gateway’s pricing structure, with negotiated enterprise rates typically resulting in lower total costs.

How long does an international wire transfer take to reach a Malaysian bank account?

SWIFT or telegraphic transfers typically take two to five business days to reach a Malaysian merchant’s bank account, depending on intermediary banks involved and any compliance checks. Settlement can be slower for first-time transfers from new senders, since additional verification may apply on the receiving side.

What is BNM Foreign Exchange Notice 7, and how does it affect exporters?

Bank Negara Malaysia’s Foreign Exchange Policy Notice 7 governs foreign currency receipts for Malaysian exporters. The key requirement is that export proceeds must be repatriated to Malaysia within six months of the export date. Any inbound payment workflow involving foreign currency receipts needs to fit within that compliance window, with records kept for tax and audit purposes.

Should a Malaysian SME open a multi-currency account for overseas income?

It depends on whether the business also has foreign-currency expenses to offset the inbound balances. A multi-currency account lets a business hold USD, SGD, EUR, or other supported currencies without forced conversion, which helps when paying foreign suppliers or running USD-denominated subscriptions. Without matching foreign expenses, the monthly fees and minimum balance requirements may outweigh the FX savings, in which case routing card payments through a gateway can be more cost-efficient.