How to Accept International Payments in Malaysia?

Introduction

The Malaysian digital economy is no longer confined by its borders. For decades, local businesses operated primarily within a domestic scope, relying on the familiar banking infrastructure of Maybank, CIMB, and Public Bank. Today, the landscape has shifted. A fashion brand in Bangsar can now sell to New York, a software startup in Cyberjaya can bill clients in London, and a tourism operator in Langkawi can book guests from Mumbai directly.

However, transitioning from a local champion to a global player requires more than just shipping products overseas. It requires a fundamental restructuring of how money flows into your business. Accepting international payments involves navigating Bank Negara Malaysia (BNM) regulations, choosing the right payment infrastructure, and overcoming the hidden friction of cross-border commerce.

This guide provides a strategic framework for Malaysian merchants, founders, and finance teams to operationalize global revenue streams effectively and compliantly.

Key Takeaways

• Compliance is Mandatory: Malaysian exporters must adhere to Bank Negara Malaysia Foreign Exchange Policy, specifically Notice 7, which mandates the repatriation of export proceeds within six months.
• The India-Malaysia Corridor is Critical: With the new linkage between India’s UPI and Malaysia’s payment network via providers like Razorpay Curlec, accepting real-time payments from Indian tourists and buyers is a massive new revenue opportunity.
• Localize or Lose Sales: International customers generally cannot use FPX. You must offer credit card processing and recognized digital wallets to prevent cart abandonment.
• Currency Strategy Matters: Opening a Multi-Currency Account (FCA) is essential to avoid losing revenue to repeated currency conversion fees.

How to Accept International Payments (For Business) in Malaysia

Expanding your business globally means upgrading your financial infrastructure. You cannot rely solely on the systems used for local Malaysian customers. Here are the primary methods for businesses to accept funds from abroad, ranked by modern efficiency.

1. Traditional Banking (Wire Transfers)

For decades, this was the only way to do business globally. It involves a customer going to their bank and initiating a Telegraphic Transfer (TT) via the SWIFT network to your Malaysian bank account.

• How it works: You provide your SWIFT code and IBAN/Account number to the client. The funds move through a chain of correspondent banks before arriving in your account.
• When to use it: This method is still common for B2B transactions involving very large sums (e.g., bulk commodity exports) where the security of a bank-to-bank transfer is preferred over speed.
• The Downside: It is slow, often taking 3-5 days to settle. It is also opaque and expensive; fees are deducted by every bank in the chain, meaning you often receive less than you invoiced. Tracking the payment status is difficult, leading to shipping delays.

2. PayPal

PayPal is one of the most recognized names in online payments and serves as a significant trust signal for Western buyers who may be unfamiliar with a Malaysian brand.

• How it works: You set up a PayPal Business account and integrate it into your checkout. Customers pay using their PayPal balance or linked cards.
• When to use it: It is excellent as a secondary backup option. For new brands selling to the US or Europe, seeing the PayPal logo gives customers confidence that their purchase is protected by buyer safeguards.
• The Downside: The cost is high. Transaction fees for cross-border sales can be significant, and the currency conversion rates offered are typically less favorable than market rates. It works well for low-volume, high-margin items but can erode profits on scale.

3. Payment Gateways

For serious e-commerce and scale, a dedicated payment gateway is non-negotiable. This technology automates the collection of funds, manages fraud, and ensures a seamless customer experience.

Razorpay Curlec

Razorpay Curlec has evolved from a specialist in recurring payments to a full-stack payment powerhouse for Malaysian SMEs and enterprises. It effectively bridges the gap between local Malaysian banking and the global market.

• Why it stands out: Razorpay Curlec is uniquely positioned for the Asian market and is currently leading the charge on the UPI-Malaysia integration. This feature allows Malaysian merchants to accept real-time payments from the massive base of Indian tourists and digital buyers, settling instantly in Ringgit.
• Features: It offers a modern dashboard optimized for both recurring subscriptions and one-off international sales. It supports multi-currency acceptance and provides a seamless checkout experience that reduces cart abandonment.
• Settlement: Razorpay Curlec offers a standard T+2 settlement cycle, which is faster than many traditional providers, ensuring you have better cash flow to reinvest in your business.

iPay88

iPay88 is a long-standing incumbent in the Malaysian market. It is a familiar name for local shoppers and has deep integrations with Malaysian banks.

• Positioning: It is a reliable option for businesses that are primarily domestic but occasionally need to accept a foreign card. It covers the basics of online banking and credit card processing well.
• Consideration: While stable, it is often viewed as a traditional solution. For digital-first startups or businesses needing rapid deployment and advanced tech stacks for markets like India or China, newer platforms may offer more agility.

eGHL

Similar to iPay88, eGHL is a veteran player in the Southeast Asian payment landscape.

• Positioning: It has a strong regional footprint across ASEAN. It is a solid choice for traditional retail businesses expanding into neighboring countries like Thailand or Philippines.
• Consideration: The onboarding and integration processes can sometimes be more bureaucratic compared to modern aggregators. It is a robust solution for established enterprises but may lack the developer-centric speed that modern startups prefer.

4. Multi-Currency Accounts (FCA)

While not a payment gateway, this is a critical tool for accepting payments without losing money.

• How it works: You open a Foreign Currency Account (FCA) with a local bank (like Maybank or CIMB) or a digital provider. This allows you to receive USD, GBP, or SGD directly without converting it to Ringgit immediately.
• The Benefit: This provides a “natural hedge.” If you earn revenue in USD, you can keep it in USD to pay for overseas expenses (like server costs or suppliers), avoiding the double conversion loss.

Essential Documents for Business Onboarding

To activate any of the international payment methods above, you must pass the Know Your Business (KYB) checks mandated by Bank Negara Malaysia. Having these documents ready will speed up your application significantly.

For Sole Proprietorships / Partnerships (Enterprise)

• SSM Registration Copies: Forms D (Certificate of Registration) and E (Information of Business).
• Identity Documents: Copy of MyKad (IC) or Passport for all owners/partners.
• Bank Statement: Latest bank statement (header page) showing the company name and account number to verify settlement details.
• Utility Bill: Recent utility bill as proof of business address (if different from the one on the bank statement).

For Private Limited Companies (Sdn Bhd)

• Certificate of Incorporation: Form 9 (or Section 17 under CA 2016).
• Shareholding & Directorship: Form 24 (Return of Allotment of Shares) and Form 49 (Register of Directors), or their equivalents under CA 2016 (Section 78 & Section 58).
• Constitution: Company Memorandum & Articles of Association (M&A) or Constitution.
• Identity Documents: Copy of MyKad (IC) or Passport for all Directors and shareholders with >25% stake.
• Board Resolution: A resolution authorizing the opening of the merchant account and appointing authorized signatories.

Consumer Payment Preferences (For Consumers)

When international customers land on your site, they expect to pay using methods they trust. Limiting them to Malaysian-specific options like FPX will result in lost sales.

1. International Credit and Debit Cards

The Visa and Mastercard networks remain the universal language of global commerce.

• Consumer View: For a shopper in London or Tokyo, entering their card details is the standard way to pay online. They expect this process to be secure, often protected by 3D Secure (OTP) technology.
• Merchant Action: Ensure your gateway supports “Cross-Border Acquiring” so these cards are accepted seamlessly.

2. Digital Wallets and Real-Time Payments (UPI/Alipay)

In many parts of Asia, digital wallets have leapfrogged cards.

• Consumer View: A tourist from India prefers using their UPI app (like Google Pay India or PhonePe) because it is familiar, fast, and avoids high forex fees on their credit card. Similarly, a Chinese buyer prefers Alipay.
• Merchant Action: Integrating these methods signals that you are a modern, global-friendly business. It builds immediate trust and convenience, dramatically increasing conversion rates for these demographics.

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Conclusion

The barriers to entry for global trade have never been lower for Malaysian businesses. The days of expensive letters of credit and complex bank wires are fading, replaced by APIs, QR codes, and digital wallets.

However, success requires a shift in mindset. It requires moving beyond the FPX-only mentality and embracing a diverse payment stack that includes international cards and emerging real-time rails like UPI. It demands a proactive approach to currency management to protect your margins. By building a robust, compliant, and user-friendly payment infrastructure today, Malaysian merchants can confidently open their digital doors to the world.

Frequently Asked Questions (FAQs)

Can I use FPX for international customers?

No. FPX relies on the customer having a login for a Malaysian bank account (like Maybank2u or CIMB Clicks). International customers without these specific bank accounts cannot use FPX. You must offer International Credit Card or Digital Wallet options.

What is the Six-Month Rule for exporters?

According to Bank Negara Malaysia Foreign Exchange Policy (Notice 7), exporters must repatriate the full value of their export proceeds to Malaysia within six months of the shipment date.

How does the UPI integration help Malaysian merchants?

The partnership between Razorpay Curlec and India’s payment network allows Malaysian merchants to accept payments from Indian tourists using UPI apps. This reduces transaction fees compared to international credit cards and improves conversion rates for Indian customers.

Do I need a specific bank account to accept USD?

While not strictly required (your gateway can convert USD to Ringgit automatically), it is highly recommended to open a Foreign Currency Account (FCA). This allows you to hold USD without forced conversion, saving you money on exchange rate spreads.

What are the hidden fees in cross-border payments?

Beyond the standard transaction fee (usually 2-3%), watch out for FX spreads (the bank giving you a poor exchange rate), cross-border surcharges (an extra 1% for foreign cards), and refund fees (where the original fee is not returned to you).

Is it safe to accept international credit cards?

Yes, provided you use a secure gateway that supports 3D Secure (3DS). This technology forces the customer to verify the transaction with their bank (usually via OTP), which shifts the liability for fraud away from you, the merchant.