Why do you need a US Bank account?
Opening a bank account in a country where you are not technically a resident under local law has always been a difficult task, but the Patriot Act and other legislation adopted after “9/11” have made the task in the United States inordinately difficult due to concerns over money laundering, illicit drug trafficking and crime in general, and, of course, the potential funding of domestic terrorist activities from overseas. Even with Bin Laden out of the way, do not expect any pullback on these rules anytime soon.
Due to the increased focus on cross-border money flows, banks have been made the initial defense line for this assault on terrorism and crime, and though their compliance with these laws is mandatory, the ability to obtain a U.S. bank account for all of the right reasons, all legal and above board, has been overly constrained in the process. This country welcomes non-residents for many reasons, and whether they stay here for brief periods of time or work in international commerce, the ability to be paid for services performed should be accommodated by an efficient and inexpensive payment mechanism.
Unfortunately, many non-residents have fallen victim to scams from the criminal element of our society that preys upon the uninformed when they attempt to get a U.S. bank account. Due diligence is required to find those Internet support companies that are legitimate, have good credentials, and display honest testimonials that can be verified.
The reasons for an account may vary by individual, but here are a few examples:
- International Student: The first thing an overseas student learns when he arrives in the United States is that he needs a local bank account with, hopefully, a payment card attached. Living in the American system is difficult without a convenient payment device, and carrying cash around for every purchase is not a safe proposition. There are nearly 700,000 people that fall into this category, and while some have local relatives, the vast majority does not. They need a safe conduit to receive money from home, and universities are not banks;
- Temporary Work Visa: If you arrive in the United States with a proper temporary work visa, then you face the same situation as the international student, but you may also wish to send funds home easily. A local bank account with ATM cards works best;
- Global Commerce: You may be a non-U.S. resident that has never set foot on U.S. soil, but in today’s Internet world of global commerce, you most likely will need to collect funds for your products or services from eBay using PayPal or another Internet payment processor. If these companies pay you, the forex exchange rate will be very high, as will costs for processing a wire transfer or check. A U.S. bank account is easily accessible.
A U.S. bank account with an ATM card is the lowest cost method for non-residents, and the card associations are always creating better cross-border payment methods.